Determining entry and exit points is one of the most important elements in cryptocurrency trading. It depends on technical analysis and smart risk management. Here is a simple explanation:
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1. Buying Points:
a) Technical analysis:
Support:
Buy when the price approaches a strong support level (an area where the price stops falling and bounces back up).
Example: If the price bounces off a certain level several times, this is considered support.
Artistic models:
Buy when bullish patterns such as a double bottom or an inverted head and shoulders are completed.
Relative Strength Index (RSI):
If the RSI is below 30, it indicates an oversold area, and there may be a price reversal upwards.
b) News and events:
Buy ahead of expected positive news, such as a new partnership, technology updates, or regulatory decisions in favor of the currency.
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2. Selling Points:
a) Technical analysis:
Resistance:
Sell when the price approaches a strong resistance level (an area where the price stops rising and bounces back down).
Artistic models:
Sell when bearish patterns such as a double top or head & shoulders are completed.
Relative Strength Index (RSI):
If the RSI is above 70, it indicates an overbought area, and there may be a correction in the price.
b) Making profits:
Set a certain percentage to take profit (such as 10%-20%), and sell when you reach that percentage.