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5 Crypto trading tips for beginners

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You’ve got stuff like Trendlines, Price action, Support and Resistance etc.
How do you know which to focus on and which to ignore?

1.(A) The state of the overall market

The Crypto market has the power to determine if Coins are likely to head higher or lower.
For example:
When the Crypto Market is bullish, Coins are likely to head higher.
And when its bearish, Coins are likely to head lower.

So, before you think of what Coins to buy, first, determine the current market condition.
You want to buy Coins when the market is bullish, not bearish.

1.(B) “How do I know if the market is bullish or bearish?”

Well, one simple technique is to buy only if the Coin is above the 100-week moving average, and stay in cash if it’s below it.

Now, this is not 100% full proof as you’ll encounter false signals along the way.
But, it’ll keep you on the right side of the markets more often than not.

2. Look to buy the strongest Coins (ignore the weak ones)

if the market is in an uptrend, then you want to focus on buying the strongest Coins out there.
You’re probably wondering:
“What do you mean by strongest?”
I’m referring to Coins which have Strong Community and Potential in Near Future.
Also Check Top 100 Market Cap Coins with High Volume Coins.
Don’t Forget To check Coins Future Road map and Development.

3. The Coins must be in an uptrend

Most of the time, the strongest Coins are already in an uptrend.
Still, there’s no guarantee (especially in Bear Market).
So, one way to go about it is to only buy stocks which are above their 200-day exponential moving average (EMA).
But why the 200-day EMA?
stocks above the 200-day exponential moving average tend to move higher (and stocks below it tends to move lower).
Below Example :-

4. A valid trading setup:-

Imagine:

  1. The overall market is bullish
  2. You’ve identified the top 5 strongest Coins
  3. The 5 Coins are in an uptrend
    At this point, the odds are in your favour because you’ve identified the strongest Coins in a bull market.
    But the question is, when do you pull the trigger?
    Well, you can use chart patterns like:

• Bull flag:-

The bull flag is a trend continuation pattern that consists of two legs.
A trending move which is the “stronger leg” of the trend and a retracement move which is the “weaker leg” of the move.

• Ascending triangle

The ascending triangle a bullish chart pattern that signals the market is about to head higher.
It looks like a series of higher lows coming into resistance.
Here’s how it looks like…

• Breakout with a buildup

The breakout with a buildup is another bullish chart pattern which signals the buyers are in control.
It occurs when the price approaches resistance and forms a tight consolidation (otherwise known as a buildup).
This is a sign of strength as it signals the buyers are willing to buy at higher prices (despite the price being at resistance)

5. A sound exit for profits and consistency

You must use a trailing stop loss.
This means you won’t have a fixed target profit, but instead, trail your stop loss as the price moves in your favour.
For example, you can use the 200-day moving average to trail your stop loss.

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