Trading the crypto market is very popular in today’s world. People are not biased about the traditional Forex major pairs, rather, they are exploring more opportunities so as to earn more money. By taking advantage of the volatility and the trending nature of the crypto market, traders are able to change their life without having any issues. Things might be tough for some of the retail traders but if you read this article, you will know how to use a professional platform. By learning about the advanced trading tools, you can make the trading business easier.
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Trend line and Fibonacci retracement tools
Using the trend line tool is the best way to find potential support and resistance level. Though currency traders prefer to rely on horizontal support and resistance, in crypto trading it is better to focus on the trend line tool. During the process of finding the potential support and resistance level in the trend line, it is important that you know about the difference of lower and higher time frame. By analyzing the lower time frame, you will be able to find the short term trading zone. But for the trend identification process, it is important that you learn about using the trend line.
Learning about the trend line is not going to be enough. You have to use the Fibonacci retracement tools to find the endpoint of the retracement. By taking trades with the retracement the traders get the unique chance to make a big profit without losing too much money. Though it will be a very complicated task at the initial stage once you learn to take the trades with retracement level, you will become more confident. Focus on the 50% and 61.8% retracement as they provide more accurate signals. Those who are good at analyzing the price action signals in the crypto trading platform can use any retracement level.
Did you know you can draw the chart pattern using simple objects on the platform? Taking the trades with the help of the major chart pattern is one of the most efficient ways to make a big profit. Instead of trying to trade the reversal chart pattern, you should focus on the continuation chart pattern. When you take the trades with the continuation chart pattern, you will be able to make more profit at any market condition. Never stick to the real account while learning the details of the chart pattern trading method. Focus on simple market dynamics and try to improve your trading skills in a demo account. Once you become good at analyzing the price data in the demo account, you will be able to boost your profit to a great extent.
Using the indicators
Some traders think indicators are not going to help in the crypto trading business. Many professional traders depend on the indicator reading to filter the best trades. Instead of using complicated indicators use a simple tool like RSI, ADX, Stochastic, etc. Once you learn to use this tool in a professional way, you can filter out the noise. When you are using the indicators, never install more than 2 indicators to analyze the same chart. Taking a reading from different types of indicators might create confusion. Trading should be done in a simple way, no matter which asset you intend to analyze.
Being a cryptocurrency trader, you can also rely on some of the news EAs. They will help you to stay up-to-date with the latest economic announcements. However, if you still intend to focus on the technical factors, you can also use the price alert indicator. Whenever the price reaches your desired level it will create a signal. At that time, you can use a manual method to take the trades with a high level of precision.
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