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Author: Admin | 2025-04-28
Cons Often requires trading on decentralized exchanges Most trending altcoins will go to zero4) Range Trading – Best for Consolidation PatternsRange trading works as its name suggests: you trade within a defined range found during consolidation trends. In this strategy, support marks entry points, preferably with confirmation from other indicators. Resistance marks exit points.For example, crypto assets often trade sideways for extended periods of time, leaving no room for big gains. However, these range-bound coins and tokens still provide profit opportunities.In the chart above, you can see Cardano (ADA) trading in a tight range, providing four trading opportunities for long trades. Four short trades are available as well, the last of which is much larger.Consolidation patterns mark uncertainty but can also signal accumulation. As with other crypto day trading strategies, it’s often wiser to use stop-loss and take-profit orders. Market uncertainty can break either way due to news or price moves for other assets.TradingView technical indicators for support and resistance can guide your trades, or you can draw your own support and resistance lines for a shorter time frame.Pros Easy-to-spot patterns Reduced trading frequency Easy to implement on centralized exchanges Cons Trading conditions can change quickly, breaking the range5) Breakout Trading – Best for Large Percentage GainsHunting for price breakouts provides another potentially profitable crypto day trading strategy. In this case, you’re looking for assets ready to run, buying when your indicators say go, and riding the chart up.Several tools can help you identify a crypto asset ready to break out. For example, in the chart below, ETH rose abruptly against BTC in the pair. The chart pattern that follows forms a falling wedge, also known as a descending wedge. This suggests that while ETH is dropping relative to BTC, each leg down tightens the wedge pattern. What often follows is a breakout to heading north.TradingView offers some paid indicators to identify falling wedge patterns, although this is one of the easier chart patterns to spot. In this example, RSI indicates overbought conditions at the start of the wedge. However, the market was just digesting the gains before running again.Pros No paid tools required Easy-to-spot patterns Also useful for longer-term trades Cons Requires trading multiple assets to find breakouts News can stall breakouts6) News-Based Trading – Best for News-Aware TradersIf you’ve been following interest rates, you know that when Fed Chairman Gerome Powell speaks, the markets react. Crypto markets allow
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