Unlock Your Million-Dollar Potential: Master the Trends in Crypto Trading!

 

Did you know in the trading world, no asset will touch the sky? Every trading market fluctuates between rise and fall. If you are planning to invest in the trading market, before placing an order, always make your profit target. If you want to buy your house this year, set your profit target accordingly. If you have other goals, adjust your mind to reach your goals.

In the bull market, you must hold coins, and in the bear market, you must be short. In trading, you have to endure a long period of short trading and waiting for a big drop. The real skill of traders is to identify the trend as early as possible and ride it to the end. But why are trends so essential to follow, and why do most traders make money in trends? The answer lies in the following advantages:

High Returns

When you follow the trend, you can get exciting returns. For example, in the crypto world, people make money when everyone rushes to buy Bitcoin. After the global financial crisis, people who bought stocks earned impressive returns.

Reduced Risk

How much better your trading strategy, but it is never excluded from risk. But trend following is low risk. You can easily exit and enter a trend.

How to analyze trends

Across the trading markets, traders employ a variety of indicators. They aim to learn about the trend and its direction. For example, RSI and MACD are used to identify patterns and trends, such as bullish or bearish movements. Traders use them for variety of reason. Some traders use chart patterns to identify the recurring patterns, such as a head and shoulders, double top, or ascending triangle. Moreover, some traders perform fundamental analyses like analyzing economic data, company financials, and coin community.

Candlestick patterns

These patterns are also very helpful in identifying the direction of the market. The most common methods are as follows:

1. Bullish engulfing pattern
2. Bearish engulfing pattern
3. Spindle line
4. The morning star
5. Evening star

It is also possible that after entering the trend, the trader wants to know the strength of a trend for long and short positions. For this, the following patterns are commonly used:

1. Flag and the triangle
2. Pennants and flags

Correlation

This method is also very useful for identifying the trend because several assets tend to move in similar directions. For example, if Bitcoin breaks out, other coins will likely follow the same route. It is also possible that other assets take some time to join the trend.

EMA50

This indicator is used to identify a long-term trend. For example, after the big sell-off, a big buy signal is generated because of asset moves above the moving average. The Golden Cross is formed when the 50-day moving average crosses the 200-day moving average after the sell-off.

RSI

The most popular indicator is helpful in identifying the overbought and oversold conditions. RSI is widely used by professional traders on Wall Street.

Finally, it depends on what the methods or combination of methods you can select. The size of opportunities determines the earning ratio, achieving your target, and living a happy life.