How to earn money with crypto trading group?
Let’s talk about those three signals that we use in crypto trading. How to navigate this complex economic and financial information, how to make a final logical decision? Most people today are at a loss: what to do right now, when bitcoin reached a historic high? Will it go on to 15 000 or roll back, corrected to 7000, and maybe further, and to 5000?
Two methods for estimating the crypto trading exchange
Since the future is foggy and to predict the situation is quite difficult, we use two approaches in our daily activities. These two approaches are used by almost all professional investors.
There are two methods for estimating the price of an asset:
- Fundamental analysis, when we monitor the news background lines for a particular currency, when we are looking for and receiving news that seems to favorably affect a particular currency, or vice versa – negatively affect the currency.Suppose, when we expected the division of currencies and the reduction of the new protocol to two. Here this adjustment to 5 just at this moment and passed.Most of the people said that we would use a different protocol, and some of the adepts said that we would stay in the protocol of the standard bitcoin. But common sense prevailed, people agreed among themselves and for the moment the protocol is supported by all market participants. Naturally, this one here is a news-based high-tech on the crypto-currency sector itself had an impact on the price on crypto trading tracker.
- There is also a second way of assessing the situation – to make an investment decision. This is the so-called technical analysis or graphical analysis.Technical analysis consists of evaluating a graph that looks in a certain way in the form of candle patterns, and a schematic part in the form of certain indicators.We use all the tools that are possible for us. We naturally track the news background on a regular basis, and we also use technical analysis (3-4 tools), and I strongly recommend that you also use it.
There is a thesis that trees never grow to heaven. This thesis is attributed to the Japanese, who created a candle analysis system, a system of Japanese candles, when the price movement was not displayed in the form of dashes that were used in the traditional European layout of the chart, but in the form of a graphic model of the candle body, which is a certain square of white or black depending on the level of opening and wicks, which are the maximum and minimum prices per day.
There is a constant war between supporters of fundamental analysis who believe that only fundamental economic news affects the currency, and there are adherents of technical analysis and analysis of the schedule that say: no, in the chart all prices are already reflected, and if all prices are reflected, in the chart reflects the emotional component of all market participants, which we see visually on crypto trading websites.
Three price movement indicators for crypto trading pro
Thus, we use the following postulate in our daily trade: every currency, cryptocurrency, every financial instrument – real estate, currency pairs, gold contracts, commodity futures, there is a so-called average price movement for the day.
The first indicator is the indicator adr, average daily range. On the chart, a greenish and purple badge is the price movement levels.
These levels currently fluctuate by 8,373 and 8,000, respectively, in this range we expect that the price can go. That is, it turns out to be within $ 300 – this is the day’s move for the last 5 days. Thus, we understand at what levels we can open, at what levels to fix the profit in order to obtain a certain final result.
The second indicator crypto trading hours, which shows us overbought or oversold of a particular cryptocurrency. Accordingly, the key values that we use in this indicator are the levels of 30 and 70% of the price movement and 10 and 90.
How to read this indicator? When the price on one or another frame, that is, a time chart – day or hour, four-hour, starts to enter critical values from 70 to 90 – there is an opinion that the currency in this case is overbought, its price is already high enough and there must be a correction . If the indicator falls within the range of 30 to 10, then there is an opinion that in this case the currency is oversold and it should be adjusted upwards. Accordingly, the adjustment levels that we constantly discuss on our channels are Fibonacci levels.
The third indicator is the Fibonacci levels. The investment and financial world: the world of traders, the world of brokers, – agreed in such a way that the price when moving in some direction is always corrected as follows:
- the first wave correction occurs at the level of 23.6%, that is, from the maximum price is corrected to;
- the first level;
- the second level of adjustment is 38.2;
- the next level is 50%;
- the next level is 61%.
It is believed that if the adjustment occurred at a 61% interest, then in this case a tendency to change it occurs, and the price goes further down and look for day trading crypto reddit.
At the moment, with the current chart of marking from 3,000, which we consider to be some local minimum, and today’s price of 8,500, the first correction wave, if you look at the chart, will be at the level of 7,500 or 7300.
The second can be carried out at the level of 6,500, at these levels there are such price movements, when the participants who are hoping with the participants who want to fix the profit and adjust it back. Quite a serious range in the area of 7,300, where there was such a tense struggle.