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Cryptocurrency Trading / Basic Price Action methods
« on: April 18, 2024, 04:31:53 PM »
Good day to my altcoinstalkers here, let me bring here the topic I made on the other platform. I know that some of you here, especially those who have been in the field of the crypto industry for a long time already know these things, but it is even more necessary for the newbies who enter the crypto trading business to know this.
This is a good input for them if they want to have basic knowledge about trading in the crypto space. Good day again everyone.
Reference: https://bitcointalk.org/index.php?topic=5493168.0
This is a good input for them if they want to have basic knowledge about trading in the crypto space. Good day again everyone.
Quote
What is price action?
Price action is "you" making trading decisions based on price formations and price patterns you see materializing in the market in "real time.".
Market Structure and Key Levels: This involves identifying key levels of support and key levels of resistance because these levels present high-quality trade entry opportunities.
What are the key levels exactly?
Key resistance levels are areas above the price where the price has drastically reversed, which presents short-term trading opportunities when the price comes back to these levels.
Price Action Psychology Behind Resistance Levels When the price comes up to a recently formed resistance level, it is deemed expensive within that particular moment in time, meaning less buying occurs, triggering the reversal downward.
Now, going in the opposite direction,
Key support levels are areas below which the which the price has reversed drastically upwards, which present long-term trading opportunities when the price comes back to these levels.
Price Action Psychology Behind Support Levels When price comes down to a recently formed support level, it is deemed "cheap" within that particular moment in time, meaning value buyers will load up, triggering the reversal upwards.
Supply and Demand + Multiple Reversals of Price: An area above, where price reverses off multiple times, is known as a "supply zone," and an area below, where price reverses off multiple times, is known as a "demand zone.".
Price Action Psychology Behind Supply Zones The market is deeming this area of price as expensive, which results in buyers consistently deciding to close their long positions in this area and sellers choosing to hold this area strong and open new short positions.
In the opposite direction,
Price action psychology behind demand zones The market is deeming this area of price as cheap, which results in sellers consistently deciding to close their short positions in this area and buyers choosing to hold this area strong and open new long positions.
What is price action? https://www.investopedia.com/terms/p/price-action.asp
I'll stop here for awhile its a long tutorial, and I will continue on my free time again, hope this will give a knowledge somehow to everyone
have a good day....
Reference: https://bitcointalk.org/index.php?topic=5493168.0