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The Facts Of Trading Crypto To Make Solid Returns!

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Cryptocurrency Trading Essentials – Know What to Look For


Some cryptocurrency enthusiasts are just not interested in buying and holding their cryptocurrencies. They would rather use some of that investment money a bit more active and start trading. However, the majority of the traders lose money as they get tangled in the complex indicators and strategies while forgetting the basics.
This guild will try to point out one of the most important things when it comes to maintaining profitability and being consistent – Recognising Market Trends.

Trading in different market conditions

While it is important to know how to utilize the intricate indicators, oscillators, and other tools in order to trade crypto well, something as basic and as simple as recognizing a major trend direction will certainly go a long way. It is a rule that traders should only trade WITH the trend, but traders rarely look at bigger time frames in order to recheck the trend direction. As an example, the same candlestick formation might be a good signal in a bull market, but wouldn’t count as a signal in a bear market.
All three market directions (bullish, bearish, and ranging) work differently, and different strategies work in different market conditions. It is advisable that traders create strategies for each market direction rather than to try to make a revolutionary strategy that always works. It is generally true that almost every strategy will work in a bull market to some extent, while only a few strategies will effectively work in a bear market. Ranging markets are easy to trade as they are bound by support and resistance levels, but are hard to recognize before it’s too late.

An important thing to note is also that each of the strategies created should be tested on the market as a whole as well as on separate time spans in which there was only one trend direction. That way, we can estimate how the strategy works both on the market as a whole and on each of the separate trends.

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