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Author: Admin | 2025-04-28
Positions near resistance and close them near support, profiting from price movements in both directions.A Stop Loss in range trading is set outside the range boundaries. However, it is worth watching for signs of an impending breakdown, such as an increase in trading volume.A variation of range trading is channel trading. In this case, the basic principles remain the same. However, it's not traded within a horizontal range but rather a channel formed by dynamic support and resistance lines. Unlike range trading, this strategy for trading cryptocurrency is used when there is a clear bullish or bearish trend.Breakout tradingBreakout trading is a very popular crypto trading strategy thanks to its versatility. A breakout is a situation where the price breaks through certain key levels. After an upward breakout, the old resistance level acts as new support. Similarly, after a downward breakout, the old support level acts as the new resistance. Breakouts are a common situation in the market. Typically, the most notable price movements are the result of breakouts of price channels or price patterns, such as triangles, flags or wedges.In breakout trading, a position is opened once the price has passed a key level, such as a resistance level or a trend line. The classic way to open a position is to enter at the opening of a new candle after a breakout. The Stop Loss is placed slightly below the broken level (or slightly above in the case of a short position). The Take Profit is often placed before the next key level. Sometimes, a Trailing Stop Loss, which moves behind the price in the direction of the breakout, is used as a Take Profit.It's important to be able to recognise a false breakout, i.e., a situation where the price has broken through a key level but soon returns to it. A common sign of a false breakout is low trading volume at the time of the breakout. Also, a good indication that a breakout is true is a large breakout candle body.In addition, many traders prefer to minimise risk by opening a position after the price has returned to the broken level and bounced back from it rather than at the moment of the breakout.Moving averages crossoversThis is a very old and well-known strategy for trading crypto that often allows you to identify a trend change. This is the most effective crypto trading strategy based on the use of two moving averages (MA) with different time periods: one with a longer period and one with a shorter period. Traders who prefer swing trading often use MAs with time periods of 50 and 200 days. For day trading, MAs with time periods of 9 and 20 candles are
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