⌚Trading Timeframes ⌚
When you’re analyzing the price of any given cryptocurrency by drawing chart patterns or using technical indicators, what you see can change significantly depending on the timeframe you’ve selected. Most cryptocurrency exchanges offer over a dozen timeframes that range from 1 month to 1 minute. Swing traders focus on timeframes that are one day or longer, day traders focus on hourly timeframes, and scalp traders focus on minute-to-minute timeframes. Scalp trading is considered to be the riskiest because short timeframes give you mixed signals when it comes to price patterns.
☀How To Day Trade☀
When it comes to swing trading and day trading, there is one simple rule of thumb to follow. The longer the timeframe, the stronger the trend. When the trend becomes clear, you can dig down to the 4 hour and 1-hour timeframes and trade based off the daily trend, the daily support and resistance levels, and along with any other zones of opportunity you find using technical indicators.
In leveraged trading, you can supercharge your profits on a cryptocurrency when it increases in value by “going long”, and even profit when the price crashes by “going short”. Most cryptocurrency exchanges offer some sort of leveraged trading via their futures markets, and usually offer anywhere between 1 – 100x leverage with stablecoin settled contracts, meaning you’re trading a stablecoin like USDT instead of actual Bitcoin.
In contrast to leveraged trading, you technically cannot be liquidated when you hold Binance’s leveraged tokens. Instead, the value of the leveraged token simply rises or falls depending on the type of token it is. The amount of leverage you get from these tokens fluctuates between 1.25x and 4x depending on market conditions.
👀How To Spot Breakouts👀
The key to spotting a breakout to the upside or a collapse to the downside is being familiar with the most common price patterns and indicators. The secret is trading volume. If the price is trending up and the buying volume is high, this suggests an upward move is coming. Similarly, if the price is trending down yet the selling volume is low, this could likewise signal a reversal to the upside.
📏Estimating The Next ATH📏
While price patterns and technical indicators go a long way in day-to-day trading, it’s a whole different ball game when prices start to go parabolic. The absence of any resistance in front of an upwards price trend means there is no way of knowing what the next high is going to be. However, this can be estimated using the Fibonacci Indicator, which is how many crypto traders guesstimate the next resistance levels for Bitcoin when it pushes past previous all-time highs.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.