How to use the price action for successful trade
The world of cryptocurrencies can be highly volatile and unpredictable. Thanks to the wide range of coins, exchanges and trade platforms, it is easy to catch in hump and make impulsive decisions based on emotions instead of a solid market analysis. However, a deep understanding of the price steps to make informed commercial decisions and achieve success in this space in rapid development is necessary.
What are the price steps?
Price actions are related to the real movement of the currency over time. It includes all small light fluctuations that occur when prices interact, including the range of the offer, the flow of orders and the feeling of the market. When studying price events, operators can obtain valuable information from the market behavior, identify trends and make more informed commercial decisions.
Understand the price action
There are several key components of price actions to understand:
- The small range indicates a balance between the offer.
- Order flow : Volume of orders to enter or abandon the market that may indicate trends, feelings and market liquidity.
- Mercado feeling : Emotional state of the market that is reflected in price movements and orders for orders.
- Trend lines : Graphical representation of the currency price movement over time, indicating direction and resistance.
How to use the price action for successful trade
Follow the following steps to take advantage of price power for negotiation success:
1.
- Identify patterns : Look for recurring patterns such as:
* Alcist or bassist trends
* Main and shoulder formations
* Wicks and candle patterns (for example, hammer, fleeting star)
- Analyze the flow of your order : Study the flow of your order in your graph to understand the feeling of the market. Look for:
* Purchase pressure: high volumes that enter the bull bias.
* Sales pressure: low volumes that leave the bears biased market.
- Follow the market feelings indicators : Use tools such as Bollinger Bands, RSI (Relative Force Index) or MACD (convergence of divergence of the sliding diameter) to measure the feeling of the market.
- Identify the trend instructions : Look for a clear indication of the management of the trends of price events and orders for orders.
6.
- Edit Dinacic Orders
: Use the information obtained from the price action to edit your orders in real time.
Advanced techniques
Use these advanced techniques to further improve your commercial strategy:
1.
- Look for rank limits : Identify support or resistance areas using price patterns.
- Use Fibonacci levels : Use a harmonious analysis to identify possible commercial opportunities.
Conclusion
Price actions are a powerful tool for operators that allows you to obtain valuable information about market behavior and make informed commercial decisions. When developing a daily chart, analyze the flow of orders and monitor the indicators of market feelings, you can take advantage of the power of the pricing events for success in the world of cryptocurrency. Be sure to dynamically adjust your strategy based on the price action and never trust only on emotions.