Why Cryptocurrencies Are Not Well-suited to Chasing Highers
More suitable for traders on the left
Unless you're really fast
If you have experience in operating stocks
Chasing high is common
As long as the stop loss and stop profit are matched well
Follow up when the market starts or breaks through
This is a normal operation
But cryptocurrencies are a little different
Unless your hands and feet are really fast
Or paired with a trading robot
Or just play with big coins like Bitcoin and Ethereum
Otherwise, the end of chasing highs is often...
The main reason is that the cryptocurrency market is moving too fast
First, the market value of small coins is small
Shallow liquidity
It is easy to rise and fall sharply
At the same time, there is no price limit for cryptocurrency
Fluctuations are fast and large
Market reaction is too fast
There is good news
Maybe the reaction will be completed within a few minutes
There's no time to catch up
Technical linear upward breakthrough
Stock Breakouts - Backtesting - The breakout confirmation phase can last for several days
Approximately a few minutes or hours
Unless your hands and feet are fast enough
After all, most people are not great traders.
Chasing prices is not a good trading method in the currency circle.
Relatively speaking, ambush early
It’s more comfortable to be a left-side trader
