20 Feb Price Action Strategies: A Guide For Trading Ethereum Classic (ETC)
Cryptocurrency price action strategies: an Ethereum Classic trading guide (etc.)
The world of cryptocurrency trade has become increasingly popular in recent years, with many investors trying to capitalize on the market rapidly growth. A key aspect of successful trading is to understand how to read and analyze the action of cryptocurrency prices such as Ethereum Classic (etc.). In this article, we will explore various price action strategies for trading etc., providing traders with a complete guide to start.
What is the action of the price?
The action of prices refers to the visual representation of market data, including price movements, trends and models. It provides traders with a unique perspective on the cryptocurrency market, allowing them to identify potential purchase or sale opportunities. By analyzing the action of prices, traders can obtain insights on the feeling of the market, evaluate the trendy inversions and make more informed trading decisions.
Price action strategies for trading etc.
- Treen that follows : This strategy provides for the identification of a strong tendency to the price of etc. And follow it. The traders seek signs that suggest that a bullish or bearish trend will continue, such as:
* High tall
* Bass that falls
* Increase volatility
- Breakout models
: Breakout models involve the ETC price that bursts above or below a significant level of resistance or a support level. Traders are looking for models that suggest potential breakout, such as:
* An increase in the price gap between two consecutive peaks or Trogoli
* A narrowing trading interval with increased volatility
3 The traders seek signs that the market is due for a correction, such as:
* A significant drop in the price compared to the previous or low
* A decrease in the moment of price (for example, increasing the Macd line)
- Cloud Ichimoku : the ICHIMOKU cloud is a technical analysis tool that provides traders to insights on the trends and models of the market. Traders use it to identify potential purchase or sale opportunities looking for:
* The upper and lower lines of the cloud, which represent the mobile average at 9 periods and the EMA of 26 periods
* The Tenkan-Sen line, which represents the short-term mobile average
5 The traders are looking for:
* Increased trading activity near support or resistance levels
* Decreasing trading activities near the trendy inversions
Popular price action indicators
- RSI (relative resistance index) : the RSI measures the extent of the price movements using a 14 -period mobile average and compare it with a mobile average of 100 periods. A value greater than 70 suggests overload conditions, while a value of less than 30 indicates the conditions of hyper -time.
- MacD (Divergence of mobile media convergence) : the MacD is used to identify trendy inversions by comparing the difference between two mobile averages (12 periods and 26 periods). When the Macd line crosses above or under the signal line, it can indicate a potential reversal to the trend.
- Bollinger bands : Bollinger gangs represent volatility using three standard deviations around a mobile average at 20 periods. Traders use them to identify potential purchase or sale opportunities looking for:
* Increased volatility near support or resistance levels
* Decrease in volatility near the trendy inversions
Tips and tricks
- Practice with a demo account : before negotiating live, practice your price action strategies on a demo account using real money.
- Stay informed : remain updated with news, events and economic indicators of the market that can affect the cryptocurrency market.
- Be patient
: the trading of actions prices involves patience and discipline.
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