💡 Fundamental factors in cryptocurrency trading – Detailed explanation
1️⃣ Trading Volume
🔸 What is it?
It is the amount of the coin that has been traded over a specific period (hour, day, week...).
🔸 Why is it important?
High trading volume indicates significant interest in the coin.
If the price rises with an increase in volume, this is strong support for the uptrend.
However, if the price rises but the volume is low, the movement may be false (false breakout).
🔸 Example:
A coin rising 10% with huge trading volume = higher likelihood of continued rise.
A coin rising 10% but with weak trading volume = beware of a reversal.
2️⃣ Price and its Movement (Price Action)
🔸 What is it?
Analyzing price behavior on the chart without indicators, through candlesticks, patterns, supports, and resistances.
🔸 Key aspects of Price Action:
Reversal candlesticks (like: Hammer, Engulfing).
Classic patterns (like: triangles, head and shoulders, channels).
Reversal points, Breakouts, Retests.
🔸 Why is it important?
Helps you understand market behavior directly without complication.
3️⃣ Support and Resistance Levels
🔸 What is it?
Support: An area where the price is expected to bounce upwards.
Resistance: An area where the price is expected to reverse downward.
🔸 How do you determine it?
From previous highs and lows.
From price accumulation areas and repeated interaction with them.
Using Fibonacci.
🔸 Tips:
Do not enter a buy trade below immediate resistance.
Do not sell at strong support.
4️⃣ Market Trend
🔸 Types of trends:
Bullish (Higher Highs & Higher Lows)
Bearish (Lower Highs & Lower Lows)
Sideways
🔸 Why is it important?
Trading with the trend increases the likelihood of profit and reduces risk.
🔸 Golden rule:
"Trend is your friend until it bends"
The trend is your friend until it reverses.
5️⃣ Technical Indicators
🔹 RSI (Relative Strength Index):
Above 70 = Overbought
Below 30 = Oversold
Used to identify potential reversal points.
🔹 MACD:
Crossing of the fast line with the slow line = Signal of direction change
Crossing above/below the zero line = Strong bullish/bearish momentum
🔹 Moving Averages:
MA50 and MA200 are very popular for determining direction.
MA50 crossing above MA200 = Golden Cross = Bullish signal.
The opposite = Death Cross = Bearish signal.
6️⃣ Liquidity
🔸 What is it?
The ability to enter and exit trades quickly without affecting the price.
🔸 Its importance:
High liquidity coins = safer for trading.
Low liquidity coins = may be very volatile and risky.
🔸 How do you know liquidity?
Through daily trading volume.
Depth of the Order Book.
7️⃣ News and Events (Fundamentals & News)
🔸 Includes:
Listing a coin on a major platform (like Binance).
New partnerships or technical developments (like network upgrades).
Security breach or lawsuits.
🔸 Why is it important?
Cryptocurrencies are significantly affected by news, and violent movements can occur due to just one tweet.
🔸 Example:
Elon Musk's announcement supporting Dogecoin = price explosion within hours.
8️⃣ Whale Activity
🔸 Who are the whales?
People or institutions holding large amounts of coins.
🔸 Why is monitoring them important?
If they suddenly buy a huge amount = it can cause a price increase.
If they sell = the price may collapse.
🔸 How do you monitor them?
Platforms like Whale Alert, Lookonchain, and Santiment provide alerts for large wallet movements.
9️⃣ Risk to Reward Ratio
🔸 What is it?
Comparison between what you can lose versus what you can gain in the trade.
🔸 General rule:
Do not enter a trade with a ratio less than 1:2
(means: risk $100 to earn $200 or more)
🔸 Example:
Entry at 1.00
Stop loss at 0.95
Target at 1.20
= Risking 5 cents to gain 20 cents = Excellent ✅
🔟 Capital Management
🔸 The key to long-term success in the market.
Do not use all your capital in one trade.
Spread risks over multiple trades.
Do not risk more than 1-3% of your total capital in a single trade.
🔸 Professional rule:
"Stay in the game is the game"
Staying in the market is more important than any winning trade.
✅ Summary:
Profit in cryptocurrencies does not rely solely on luck or recommendations...
But rather understanding these factors, linking them together, and making decisions based on realistic and disciplined analysis.
#Binance #BinanceAlphaAlert #BinanceSquareFamily #تداول_العملات_المشفرة #تداول