And to top it off, no one will know who’s trading it!
Support and resistance trading is one of the most basic, yet highly effective trading strategies that can be used across all trading instruments.
Also, it doesn't matter if you trade Bitcoin, Ethereum or any other Crypto or even any other market. The same support and resistance techniques work on all markets and bring the same profitable results as well.
There are many ways you can trade cryptocurrencies - either Bitcoin or any other altcoin - depending on what you base your predictions on. From fundamentally studying the asset, reading news and press releases that may modify the price, to evaluating how its price fluctuates, traders have myriads of opportunities when it comes to how they want to evaluate the market.
And, when it comes to technical analysis, price action is the main protagonist of any profitable trader's studies.
What Is Price Action?
Price action is the movement in the price of an asset. Whenever you look at a chart, you are indeed staring at price action.
That is because every candlestick shown on the chart is the representation of price action.
Why Should Traders Take Price Action Into Consideration?
Well, that's an easy question to answer.
Price action can tell an experienced trader what to do next. It lets you know how strong a trend is doing, where important support and resistance zones are or if there are any important bullish or bearish Price Action Patterns. If the movements increase in size, then the trend has momentum; in the opposite case, it's losing its power and might get to a sideways trend and to a low volatility period.
Let's look at a D1 BTC/USD chart for a moment:
Thanks to its features such as RAM purchasing and ownership stake ratio with its coins, the EOS cryptocurrency is hugely popular for day trading also!
Trading breakouts is a very popular strategy among traders in many markets, not just with cryptocurrencies. However, when it comes to cryptos, trading breakouts can be somewhat intimidating after the first impression.
But, you don’t need to worry about that! In this article, I’ll share my secrets with you regarding how to spot breakouts and how to take advantage of them.
What’s A Breakout?
For the beginners, knowing about bitcoin trading is a hard task for sure!
There is a wide range of traditional strategies that can be applied on bitcoin through which you can make money. Here we’ll discuss some tips to start trading bitcoin successfully, Also, make sure to check my complete bitcoin strategies as well!
Many people say that long-term trading is way too risky. They may point out that you are putting in too much capital in very few assets or trades (even one, perhaps), while others say that you aren’t making any money in the meantime.
A lot of traders then come out saying that short-term trading is too frantic, that you need to be glued to your screen so you can make a small quantity that could be eaten away by your spreads anyway!
To appease those who’d rather stay in the middle, I’m presenting you here with a few tips for the daily BTC chart!
1. Why Should I Use The Daily (D1) Chart?
If you look at this graph...
Cardano parts from this history, setting out to mark a next step in the evolution of smart contracts and blockchain platforms in general.
Said to be one of the most promising cryptocurrencies right now, it’s starting to look like a good option for investment.
Probability is nothing more than the likelihood for an event to happen. We use probability to know how close to being certain we can be regarding an outcome.
When it comes to trading, high probability trading is a way to call the act of opening and closing positions where the chance of profit is very high.
Even though you can never be 100% sure that something is going to happen when it comes to trading, there are methods you can use to ensure that your trades have the higher chance of being profitable.
1. Measuring Momentum Through Price Action
Knowing when a trend is dying out or bursting is very important when it comes to placing a trade. The momentum of the trend is your first signal regarding which position you should open.
Trend Following trading systems provide some of the best and most profitable trading opportunities in Cryptocurrencies and Bitcoin.
As the name suggests, in this strategy I trade in the main direction of the market - so I simply go in the direction of the price moves. This is always an advantage as I don't care about the real value of Bitcoin or other Cryptocurrencies, but I simply trade in the direction of price.
Thanks to this strategy, most of the time I am on the right side of the market
Zcash is one of the most reputable coins among them, and it makes for a nice trading opportunity, albeit not an easy one.
However, since diversifying a portfolio is always a good idea, here we’ll discuss and teach you how to trade Zcash:
With that philosophy in mind, I’ll present you an opportunity to do just that by adding Dash to your crypto trading portfolio.
Many people see Bitcoin trading as simply buying it and praying to God for the price to increase eventually, however, there’s much more to it.
Today, the biggest profit in the crypto market is to be made through short lasting trades - specifically, day trading.
With day trading, you can take advantage of the smaller movement prices that get overlooked as you study the long-term trends of the industry, which can be stagnant for some time and therefore not suitable to long-term holders.
On the other hand, trading with charts that are smaller timewise opens the door to more profitable trades thanks to the movements being more significant.
1. Advantages Of The 1 Hour BTC Chart
First, take a look at this weekly chart:
Seeing as how this is a very popular coin - and one with manageable volatility - we’ve created this guide to show you some ways you can trade Litecoin!
There are many ways you can take on the crypto market; you may take long positions with hopes of raising hundreds in weeks or months, or you may take the day trading path.
So, now we’re taking an approach to day trading using the 5-minute charts.
In this article, I'm going to show you a way how to make your trades safer without having to rely on any indicator - but you will just need to look at the charts!
There are people who simply weren’t born for long-term trading. There are many traders who rather take smaller trades with the advantage of frequency, thanks to benefits like smaller losses, no overnight fees, and let’s face it, more fun.
So, if you’re looking for ways to make your day trading more successful, then don’t be afraid. We will show you some ways you can enter trades with this timeframe and provide you with examples on how to carry them out.
Day trading is a style of trading and not a specific strategy in itself. Day traders prefer the ability to open a larger number of smaller trades instead of opening one trade and holding it for a longer-term.
1. Best Indicators For Trading the 15m Timeframe
The best indicators for this 15-minute chart strategy are the EMA, MACD, and Parabolic SAR.
The EMA lets you spot trends easier, and you can get good information if you use for example a combination of two different moving averages. The MACD offers a similar function, but it’s better for confirming trend strength. On the other hand, the Parabolic SAR lets you gauge short-term momentum and provides good stop signals when coupled with the rest.
Why do I like the 6 Hour chart? Not many use it. Most traders use standard time charts, so using less common parameters for your trading can place you ahead of the pack thanks to how to using unique information to make trades.
Note: Using custom time frames is something that you might not be able to do on your current broker, so make sure that’s available if you want to use it. If your broker doesn’t support this feature, then you may want to start looking for another one for the long term.
1. Trading The 6 Hour BTC Chart Without Indicators
As I’ve stated previously, price action is a very powerful and versatile indicator in its own right.
That’s because all other tools are really just ways to simplify the information provided by price action and are derived from price action. Hence, elite traders rarely use indicators and they can obtain all the information they need just by looking at the candlesticks alone!
So, let’s see how I traded this 6H chart just by using price action:
Although reviewing the past crashes of the price of Bitcoin and cryptocurrencies is productive enough in learning the esteemed lessons from them, we have to also look at and consider what the upcoming years may bring?
Caution: As promising and unique this concept may sound, there is no certainty or any other form of acclimation that predicted prices would be 100% accurate and will provide an effective market evaluation of Bitcoin or other cryptocurrencies.
These are just estimations and predictions based upon facts and systematic study of the crypto world.
Also, in our view, cryptocurrencies are more likely to rise in the following years than crash. We only gathered the negative news and theories here and show them below because we believe that we all should be aware of the potential risks.
Only the price tells us the real value and where the market will go. Make sure to read our trading strategies to find out how to trade cryptocurrencies profitably.
A few words about Bitcoin mining and the core of this strategy
You all surely know that Bitcoin hasn't appeared out of thin air and that new Bitcoins are created by mining. The mining process consists of algorithms that are solving hard mathematical formulas and trying various mathematical combinations. The successful attempts of these algorithms create new Bitcoins.
Mining is an interesting business field with already a lot of involved participants and institutions. But, we are not going to go into it in this article. Instead, here we are now going to dive into the insider information and the core of this strategy.
The mining process becomes increasingly harder over time as more and more Bitcoins are extracted. And because of this the mining process also becomes more expensive due to the energy needed to run the computer machines as well as other costs involved.
This made its fans millionaires or even billionaires.
Let us now have a few highlights of the important maximum and minimum prices of bitcoin following the years of its succession.
But we are more specifically talking about Bitcoin, the oldest and the most famous cryptocurrency the market has ever witnessed. Here are a few reasons why Bitcoin like other cryptocurrencies can crash from time to time and experience significant downside moves. But don’t get confused, rise and falls are a natural part of every asset. We are only going to show the most usual reasons why cryptocurrencies can experience similar moves from time to time.
But remember, these moves to the downside only bring more profitable opportunities for long-term investors in cryptocurrencies.
Double tops and double bottoms are some of the most popular chart patterns for traders. Therefore, they tend to be those you learn first when it comes to trading chart patterns when trading cryptocurrencies.
Due to how commonplace they are - and how profitable it can be to know them - I’ve prepared this guide so you can know exactly how to proceed when you encounter one!
So, read on and learn how to trade double tops and double bottoms!
What’s a Double Top?
But of course, if preferred - you can go on lower time-frames and still trade the swing trading strategy. By doing so, you would most often open and close trades within the same day.
Multiple strategies use price swings as a base to success, like the "Stuck in a box" or "Catch the wave" which are two of the most popular and effective swing trading strategies.
If you are interested in making money with NEO, then take a seat and keep reading because I’m going to show you how to trade and take advantage of this great opportunity.
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