Here are a few checklists if you are using a trend-following strategy.
1. Look for momentum in the price.
When the price of an asset is moving up, it's typically because there's an influx of new investors buying it at lower prices than they were paying before. This is a sign that the price will continue to move higher
2. Look for support and resistance levels.
You can use these areas as criteria when deciding whether or not it's time to buy or sell.
3. Establish your entry rules.
Define clear entry signals based on your chosen technical indicators and trend direction.
4. Set your stop-loss.
Determine a suitable stop-loss level based on your risk tolerance. Consider using trailing stops to lock in profits as the trend progresses.
5. Determine your profit target.
Establish a profit target, either as a fixed percentage or using a technical indicator like Average True Range (ATR) for your target.
6. Maintain discipline.
Stick to your predefined rules and avoid emotional decision-making. Review and adjust your strategy based on your performance and any changes in market conditions.
#TradeResponsibly #crypto2023 #Binance #dyor #trading
