Classic Trading Strategies

The basic trading strategies that have transitioned into cryptocurrency trading from traditional financial markets include:

trend trading. We mentioned this strategy above, and it is one of the most common on financial markets due to its simplicity and accessibility. The main advantage of trend trading is that it allows traders to avoid trades against the main price movement, reducing the likelihood of losses.

To identify and confirm trends, technical indicators such as moving averages or the relative strength index (RSI) are often used, which help traders detect the direction and strength of the current price movement;

trading at support and resistance levels. Using this strategy, traders identify key levels on the price chart where the asset historically finds support or encounters resistance from market participants. Thus, the first forms the lower boundary of the price range, while the second forms the upper.