Learn Bitcoin Trading Strategies
Before coming up with a bitcoin trading plan a trader must learn about the various bitcoin trading strategies that they can sue to trade bitcoin. Coming up with the right bitcoin trading strategy can increase your chances of becoming more successful in cryptocurrency trading.
For traders who want to learn about bitcoin trading strategies there are 50 bitcoin trading strategies listed in the bitcoin trade strategies section of this strategy. This strategy section also shows traders how combine these strategies to come up with a cryptocurrency trading system. The bitcoin trading is a set of rules that will be used by cryptocurrency traders to generate cryptocurrency trading signals. For example the bitcoin trading system rules will specify how two or more indicators will be used together to generate a buy or a sell bitcoin signal.
As a trader the strategy you select should be applied in your trading once you decide what type of trader you're and what type of trading method you will be using to analyze the btcusd trading market moves.
For examples you might decide that you want to be a scalper you will use your scalping strategy & only open traders for a few minutes. If you are a bitcoin trend trader you will use your strategy after you have decided the bitcoin trend of the btcusd trading market. If the bitcoin trend is upward you'll use your bitcoin trading strategy to open buy cryptocurrency trades.
If you are a day trade you will use your strategy to open trades that will only be opened for a few hours. Your trades should all be closed during the day & you will not hold your trades overnight. As for the trading method which may be that of bitcoin trend following you will first draw bitcoin trend lines on the cryptocurrency chart to figure out the overall market bitcoin trend & after that you'll then apply your trading strategy to open cryptocurrency trades.
In technical analysis there are various methods used to trade bitcoin which a trader may use to determine which of these methods of trading they will be using when trading the btcusd trading market. After select in their technique traders will then apply their bitcoin trading strategy to open cryptocurrency trades.
Types of Bitcoin Trading Methods
There are 2 general techniques of trading the btcusd trading market, these are:
1.Bitcoin Trend Trading
2.Range Trading
Bitcoin Trend Trading
In this method a trader will first of all determine the overall market bitcoin trend before applying their bitcoin trading strategy to open cryptocurrency trades.
To determine the bitcoin trend - this can either be an upwards bitcoin trend or a downward trend.
A trader may use bitcoin trend lines or moving averages to determine the overall market trend. After determining the btcusd trading market bitcoin trend then the trader can use their bitcoin trading strategy to open cryptocurrency trades.
For example a trader may determine that the btcusd trading market bitcoin trend is upward by using moving averages. The trader may then use a cryptocurrency indicator such as Bollinger bands and open trades once the bitcoin price retraces to the lower Bollinger band because this lower band will act as the support level of bitcoin price. Therefore the trading strategy that the trader will be using is the strategy of resistance and support levels & the trader will be using Bollinger bands to determine these points and open and close trades based on these points.
Range Trading
Range trading is a technique of trading bitcoin that move within a particular band of bitcoin prices and only oscillates between these two points without moving much outside these two points.
A trader will then use the strategy of support and resistance to determine which levels to open buy or sell cryptocurrency trades. The trader will draw a support line and a resistance line. The support level will be used to open buy cryptocurrency trades and the resistance level will be used to open sell cryptocurrency trades.
The most popular trading method between these 2 is the bitcoin trend trading method. Traders should always try to trade with the bitcoin trend technique as this method is the most reliable method when it comes to trading bitcoin. Even though sometimes the btcusd trading market will be trending and at other times the btcusd trading market will be moving in a range when the btcusd trading market is consolidating traders should try to trade the btcusd trading market only when there is a trend. After determining the bitcoin trend traders will then use their bitcoin trading strategy to determine when to open buy or sell cryptocurrency trades that are in direction of the overall market trend.
Once you have determined what type of trader you are: scalper, day trader or swing trader you should then come with the following:
1.Trading Method
2.Trading Strategy
After coming up with this 2 you'll then combine these 2 and use these to detect when to buy or close trades.
You can then practice trading on the practice account so as to determine profitability of your technique and strategy. You will then use the results to improve the profitability of your trading technique & strategy and once you have gained experience to trade with these 2 you can then open an account and begin trading the live bitcoin market.
