1. Understanding Candlestick and the Movement Pattern
Understanding the candlestick and movement patterns is very important in trading, why? Because Candlestick can predict price movement of bitcoin in some candle forward. By understanding candlestick and movement pattern, then you can predict the trend that will happen. As the saying goes, ‘history always repeats its self’ or history usually occurs repeatedly. For that, you need to know the usefulness of candlesticks well to take advantage of the bitcoin trade in the market. If you want to invest another currency, you should know about DavorCoin Review.
2. Conducting Technical and Fundamental Analysis
Before trading, you should learn to analyze the bitcoin price movement technically, by understanding the indicators and trading tools that match the characteristics of bitcoin movement in the market. You should also be able to analyze the news (fundamental analysis) of both global news and news events that appear at any given time and its nature can influence the movement of bitcoin price trends.
3. Understanding the Characteristics of Bitcoin Movement
Bitcoin price movements in the market have certain characteristics that are influenced by several factors either fundamental or technical news, as well as certain other things that have their own uniqueness. The more often you trade the more you understand the character of bitcoin movement, to the natural instinct of a pro trader. DavorCoin is alternative currency that recommended to try.
4. Creating a Trading Plan
Sometime before trading, you must make a good trading plan. By organizing your work steps and strategic plan, you will be able to immediately take action or step if things happen outside the scenario you have created.
Usefulness of this trading plan is that we always follow the rails we have made so as not to slip and fall to the brink of destruction.
5. Use the right indicators and trading tools
In the chart provider platform, we will find a wide selection of indicators to be used. Unfortunately, we are often also confused to choose which indicators you should follow, so choose the best and match the character of bitcoin movement in the market.
6. Predicting the direction of movement of Trends
Trends indicate the direction of movement of a commodity price traded in a market. Both up and down trends will provide an opportunity for us to make a profit if you know it first.
7. Use of the right time frame
Sometimes we are confused to choose which time frame is used when trading. My advice, in bitcoin trading you use the time frame D-1 or above, W-1 and Mn because it is much more stable than the time frame H or under it. The use of low time frames is often confusing in predicting actual bitcoin price movements, since the graphs formed by these time frames tend to be volatile and often form whipsaws, making it difficult to predict.
8. Predicting Retracement and Reversal
Any bitcoin price movement in a graph seen on the platform when undergoing a trend, either up or down, will certainly be followed by a Retracement (price correction) that is the opposite of an ongoing trend. By understanding the retracement, we can take advantage of the opportunity to take profit at that moment.
9. Determining the Trading Area
The trading area describes which area or at what level we should open a buy / sell position and in which area does not do that which may cause us to be stuck in a prolonged floating loss. Preferably, the trading area is created by drawing a W-1 or Mn line that has been formed, because this level is very difficult to break.
10. Read the global news and news events that will appear
In trading, we need to pay attention to what news (news event) will appear and what time the news is released. In addition, the ongoing global news that may affect the bitcoin price movement is also important to be given attention.
11. Make a Trading Journey
A trading journey is a diary of a trader during his trading in the market. So, trading journey needs to be made by a trader to see what lessons can be learned from trading. For example, when experiencing loss, he will record what the cause, how to fix it and then fix it in the future. Likewise, when winning, he will write how the victory was achieved, how to reach it again in the future.