Every trader has a unique style — and knowing yours is key to success. Here are 4 common trading types, inspired by the animal kingdom:
**1. Scalping (Tiger)** Fast, fierce, and always alert. Scalpers trade on 1M or 5M charts, aiming for small profits multiple times a day. High profit potential, but also high risk!
**2. Day Trading (Lion)** Strong and strategic. Day traders use 15M to 1H charts, entering and exiting trades within the same day. Balanced approach with good returns and medium risk.
**3. Swing Trading (Rabbit)** Quick but cautious. Swing traders hold positions for a few days, using 1H or 4H charts. Moderate profits with lower risk.
**4. Position Trading (Turtle)** Slow and steady wins the race. Position traders hold for weeks or months using daily or weekly charts. It’s low stress with medium profit potential and the lowest risk.
Choose your trading style based on your personality, time availability, and risk tolerance.
A falling market can be scary — but smart traders see opportunity, not just fear. Here's how to stay sharp and protect your capital:
1. **Don’t Catch a Falling Knife** – Avoid buying too early. Wait for **confirmation** of a bounce like a bullish engulfing or double bottom pattern.
2. **Use Stop Losses** – Always set a **stop-loss** to limit damage. Falling markets move fast, and hope is not a strategy.
3. **Look for Strong Support Zones** – Use historical price levels, Fibonacci retracements, or moving averages (like the 200 EMA) to spot potential reversal zones.
4. **Short the Trend** – In futures, consider shorting weak coins after pullbacks to resistance. Use tight risk management.
5. **Don’t Overtrade** – Sit out if there’s no clear setup. **Capital preservation** is a position too.
6. **Follow the Trend** – In strong downtrends, trade **with** the trend. Don’t fight the market.
7. **Keep Calm** – Emotional decisions = poor trades. Stick to your plan and manage risk like a pro.
A Moving Average (MA) is a widely used technical indicator that helps smooth out price data to identify trends over time. It calculates the average price of an asset over a specific number of past periods.
Types of Moving Averages:
Simple Moving Average (SMA) Adds up the closing prices over a set number of periods and divides by that number. Example: A 10-day SMA averages the last 10 closing prices.
Exponential Moving Average (EMA)
Gives more weight to recent prices, making it more responsive to current price action. Common EMAs: 9, 20, 50, 200
Why Traders Use Moving Averages:
Trend Identification: If price is above the MA, it’s often considered an uptrend; below = downtrend.
Support/Resistance: MAs often act as dynamic support or resistance levels.
Entry/Exit Signals: Crossovers (like 20 EMA crossing above 50 EMA) can signal potential entries or exits.
Looking at the chart, price recently made a lower low around 0.00000845, but RSI(12) and RSI(24) have held higher lows—this is a textbook bullish RSI divergence. When price action drops but momentum (via RSI) rises, it often signals weakening selling pressure and the potential for a bounce or trend reversal.
Other key observations:
RSI(12) is around 45 and turning up—not overbought, meaning there’s room for upside. Stoch RSI is in the oversold region and beginning to curl upward—a possible early confirmation.
Price is consolidating near the 200 MA on lower timeframes, adding a layer of support.
Potential Signal:
Watch for a bullish candle close above 0.00000885 with volume. That would validate the divergence and offer a decent swing entry.
Stop loss could be set just below 0.00000845 to manage risk.
Not financial advice, but I’ll be watching this closely.
RSI (Relative Strength Index) is one of the most useful tools in my trading kit. It helps me understand momentum—whether an asset is overbought or oversold. The RSI ranges from 0 to 100. When it’s above 70, the asset might be overbought (a potential reversal or pullback). When it’s below 30, it might be oversold (possible bounce or trend shift).
But here’s where it gets really interesting: RSI divergence.
This happens when the price and RSI move in opposite directions. For example:
Bullish divergence: Price makes a lower low, but RSI makes a higher low. This suggests selling pressure is weakening—buyers could step in. Bearish divergence: Price makes a higher high, but RSI makes a lower high. This warns that momentum may be fading, and a drop could follow. RSI divergence isn’t a signal to trade blindly—but when combined with trendlines or support/resistance, it becomes a powerful confirmation tool.
I always look for RSI divergence before entering swing trades. It’s a game-changer when used right.
I’ve been swing trading crypto on Binance using 4H, Daily, and Weekly charts, and I wanted to share why this style works so well for me—and might work for you too.
Here’s my approach:
Timeframes I trust:
4H for entries, Daily for trend confirmation, and Weekly for big-picture context. These help cut out the noise and let me focus on meaningful moves.
Leverage used wisely:
I mostly stick to 3x to 5x—enough to amplify gains without risking liquidation on a small move. Risk management is everything. Key tools in my arsenal:
RSI + MACD for momentum signals EMA 20/50 crossovers for trend confirmation Chart patterns like bull flags, triangles, and double bottoms Volume spikes to confirm breakouts or reversals
My edge:
I avoid overtrading. Swing setups give me time to plan, stay objective, and grow my portfolio without burnout.
This is just the start—I'll be sharing real setups, thoughts on the market, and lessons learned from both wins and losses. Let’s build a strong community of smart traders here!