To identify the market trend in cryptocurrencies, it is essential to observe the price chart. Look for a general pattern in the highs and lows:
In an uptrend, you will notice that each "peak" is higher than the previous one and each "valley" also rises.
In a downtrend, the "peaks" are progressively lower, as are the "valleys".
When there is a sideways trend, the price remains horizontally between a support level and a resistance level.
Key Tools and Strategies
In addition to visual observation, you can rely on technical indicators to confirm your analyses and optimize your buying or selling decisions. My experience has shown me that the crossing of Exponential Moving Averages (EMA) is particularly effective.
For example, a "golden cross" occurs when a short-term EMA (like the EMA 20) crosses above a long-term EMA (like the EMA 100), signaling a strong uptrend. Conversely, a "death cross" occurs when the short-term EMA crosses below the long-term EMA, indicating a downtrend.
Combining these tools with your knowledge and experience will allow you to navigate the crypto market with greater confidence.
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