Details You Must Know About Trading Cryptocurrencies
Trading in the cryptocurrency market is like a game; mastering the rules and rhythm is crucial. Once a strong coin has fallen consecutively for 9 days from a high position, you must decisively adjust your strategy, while coins that have risen for two consecutive days should be reduced in position promptly to lock in profits.
If a coin rises more than 7% in a single day, there is often an opportunity for further gains the next day; you may choose to continue observing. However, for strong bull coins, it is essential to wait for the pullback to end before entering again to reduce risk.
When a coin has shown little fluctuation for three consecutive days, you can observe for another three days; if there is no significant change, consider switching positions. If the next day cannot make up for the previous day's cost price, you should decisively exit to avoid being deeply trapped. Additionally, there are rules to follow in the gain rankings; coins that have risen for three consecutive days may continue to rise until the fifth day, which is usually a good selling point.
Trading volume is the soul of the cryptocurrency market. When the price of a coin is consolidating at a low level and breaks out with increased volume, you should pay close attention. Conversely, if there is a surge in volume at a high level without price increase, it is wise to exit decisively. In trading, only choosing coins that are in an upward trend is key to increasing your chances of success.
For short-term rises, look at the 3-day moving average turning up; for medium-term rises, check the 30-day moving average; for major upward trends, observe the 80-day moving average; and long-term opportunities are typically confirmed by the upward turn of the 120-day moving average.
In summary, trading in the cryptocurrency market emphasizes strategy and execution. Following the trend and combining volume and price are essential to seize opportunities amid fluctuations and move steadily forward.
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