362614671.edited(3).txt - Cryptocurrency Trading Guide...

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Cryptocurrency Trading Guide: Understanding Trading Trends What are the Trends? In simple terms, a trend is defined as a general direction in which a particular item is moving or developing. In cryptocurrency trading, trends tend to take three general courses i.e., up, down, or sideways over a defined period. If you have a look at any cryptocurrency trading charts, you may quickly notice the three times of trends and indicate the changes in the price of a particular coin. Trading trends play a vital role in cryptocurrency trading as they offer a cryptocurrency trader a particular pattern or sequence such as simple rises and falls in which they can effectively act upon to come up with crucial trading decisions. Understanding trends are, therefore, a critical aspect in cryptocurrency trading. Importance of Trends in Cryptocurrency Trading Trends are vital in coming up with trading decisions, but it is not advisable to only employ trends alone when deciding on the trading direction. Buying Bitcoins may seem to be profitable when the prevailing price trend line indicates an uptrend, but any avid trader should not only consider such trends. A good cryptocurrency trader should factor in other trade indicators such as support and resistance key levels, volume analysis and price action patterns when making a trading decision. Additionally, when formulating a trading decision, higher and lower time frame trends should be considered as they sometimes oppose a prevailing trend. In some instances, the prices may look like an uptrend but a higher time frame may disclose the current price s are a downtrend and save you from bad investment decisions. The existence of a Trend in the Cryptocurrency Market Trends exist due to the high volatility of the cryptocurrency market. Trading trends are a huge part of technical analysis which attempts to predict future market prices of the coins basing on the past market conditions such as the price moves element. The trading trend in technical analysis tends to continue into the future of trading, but most traders and market analyst usually object this point stating that future cryptocurrency prices cannot be forecasted as they are mostly random (random walk theory). However, trading cryptocurrency with the prevailing trend has a higher probability of making a significant profit as compared to trading against the trend. Nevertheless, trading with a trend is not a guarantee of a trading success but largely put the trading odds in your favor.
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  • Spring '14
  • cryptocurrency markets

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Christopher Reinemann
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