When opening positions in the crypto market, you need to follow clear rules. How to find patterns and what tools to use?

Investments. Buying in equal parts

The easiest way to start investing in #crypto is a long-term accumulation of tokens with regular purchases in equal parts. You need to invest a fixed amount in $BTC (or another cryptocurrency) every month.

The advantage of this strategy is that you can buy the asset regardless of the market situation. If the price of the cryptocurrency starts to fall, then subsequent purchases at a lower cost can average the entry point.

This strategy works for those investors who have a long-term vision for the growth of the asset, - said the CEO of the financial company Newcent.

Trend Trading

Asset prices always move according to a trend, which can be either upward (#bullish trend) or downward (#bearish trend). A trader can open positions in the direction of the trend, i.e. buy when the trend is up and sell when the trend is down.

The most difficult moment for novice traders is to determine the trend, for this purpose it is necessary at least to determine the key local minimums and maximums - experts say.

For an uptrend, each next point should be higher than the previous one, and for a downtrend, the local highs and lows should be lower than the previous ones. Then we can safely talk about the presence of a trend - says the expert

Trend change

This method is more complex and requires basic knowledge in technical analysis. Trend reversal can be used to open new trades, but the difficulty of this strategy is to correctly identify the possible reversal. For this purpose - Bestchange Senior Analyst Nikita Zuborev recommends using several indicators.

The first tools are moving average (MA - Moving Average) and exponential moving average (EMA - Exponential Moving Average). According to the analyst, these indicators determine the current trend by the previous values.

There is a high probability that the price will sharply change the local trend when approaching this line, and the larger the "timeframe" (time interval enclosed in one candle on the chart), the more significant the resistance at these levels, the analyst added.

The next tool is the Relative Strength Index (RSI), which shows the strength of the current trend. Bestchange Senior Analyst says that the main signals are crossing lines with overbought and oversold zones, i.e. values close to the upper (100) or lower (0) boundary. The closer the RSI line is to 0, the more the downtrend is weakening, and the closer it is to 100, the less upward strength the price has, Zuborev added.

One of the most common among beginner traders is the MACD moving average convergence/divergence indicator, said Ivan Petukhovsky, co-founder of EXMO crypto exchange. According to him, the main thing you need to know about this indicator is that it tells you where the market is likely to go next.

To correctly recognize the convergence/divergence of moving averages you need to open two lines on the chart of a trading pair - the signal line and the MACD line, Petukhovsky explained. When MACD crosses the signal line from below, a bullish crossover is formed, and when from above, a bearish crossover is formed, emphasized the co-founder of EXMO crypto exchange.

That is, when the MACD line turns out to be higher - it is a signal of an uptrend, when below - a downtrend. The indicator is very simple, quite visual, uncluttered with unnecessary data, the expert added.