#Bitcoin expert trader series#

News and rumors can have powerful effects on the market and often create lucrative trading opportunities. Many traders believe that when prices approach the “lower band” it is time to buy and when they hit the “upper band” it is time to sell.Ĭrypto-traders must keep track of community discussion and news events because this information impacts the market price of cryptocurrencies. Bollinger Bands: Bollinger bands are lines plotted two standard deviations above and below the simple moving average of a cryptocurrency chart.The simple moving average (SMA) takes the average prices over a specified period (such as days or weeks), while the exponential moving average (EMA) gives greater weight to recent prices. Moving Averages: The moving average is a technical analysis indicator used to “smooth out” price action on a cryptocurrency chart by separating random price fluctuations from the overall trend.Next, horizontal lines are drawn to possible support and resistance levels. Fibonacci Retracements: A Fibonacci retracement takes two extreme points (generally, the highest and lowest points) on a chart and divides the vertical distance by the following Fibonacci ratios: 23.6%, 38.2%, 50%, 61.8%, and 100%.A sophisticated technical analysis includes Fibonacci retracements, moving averages, and Bollinger bands.

#Bitcoin expert trader series#

Uptrends are a series of higher highs (resistance points) and lower lows (support levels). Trends describe the general direction of a cryptocurrency chart. This information is used to determine the best time to enter or exit a trade. Technical analysis helps investors find key support and resistance levels. Technical AnalysisĬrypto-traders rely on technical analysis to identify and predict trends and patterns in the value changes of a currency.

The greater the risk you take, the greater your reward will be if you come out on top. However, a successful trader should never run away from risk because risk and potential returns are positively correlated. Risk management measures volatility and the likelihood of negative outcomes to a trade. The Relationship Between Risk and RewardĪ successful crypto-trader must understand the relationship between risk and reward. This article will reveal the five things you must understand if you want to become a successful crypto-trader. Trading can be lucrative, and many people have made fortunes doing it. The goal, of course, is to buy when prices are low and sell when they rise higher.

Crypto Buying, Selling, and Trading 3 min, 17 sec READĪ crypto-trader is someone who profits from short-term changes in the market price of cryptocurrencies, altcoins, and value tokens.