Bitcoin 2017.pdf - At the time of writing Bitcoin has gone through an explosive price increase over a brief period One implication of this is that it

Bitcoin 2017.pdf - At the time of writing Bitcoin has gone...

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At the time of writing, Bitcoin has gone through an explosive price increase over a brief period. One implication of this is that it cannot go on forever. As time passes, the type of trading strategy that will be most useful to Bitcoin traders will change. At the time of writing, determining the trend by looking at the price over a short time frame, for example by asking if it is up or down over the past 4 weeks, will usually work well. As price movements become more normalized over time, that useful time frame will lengthen towards something closer to the 13 weeks or so which, tends to be most useful look- back period in trading fiat currency pairs. Until Bitcoin goes through this change of slowing down in its volatility, the most profitable strategies to use will probably rank in this order: 1. Entering early after reversals at counter-trend extremes, such as 1 or 2-day highs or lows, using price action to determine reversals.
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