How to use price targets in the cryptocurrency -trade strategy
As a cryptocurrency, he is constantly looking for benefits on the market. The popular approach is to use prices, which consists of identifying key levels of support and resistance that can help you control negotiation decisions. In this article, we examine how to use price targets in the cryptocurrency trade strategy.
What is price target?
Price targeting is a method of technical analysis that includes the identification of specific price levels, such as upper, stockings and raster rashes, and uses them to determine the next level of a particular device. The target prices can create a framework for your commercial decisions by recording historical data or the feeling of the market.
Benefits of prices targeted in cryptocurrencies
Price target offers many benefits including:
- Increased trust : You can feel more confident than your businesses are planned when prices are targeted.
- Decreased risk : Identify key support and resistance levels can reduce the likelihood of loss of money due to unexpected price movements.
- Improving the efficiency of stock exchanges : Price target helps identify opportunities and eliminate unnecessary positions.
How to use price targets in the cryptocurrency -trade strategy
Here are a few steps to follow when the prices of the cryptocurrency strategy are aimed at:
- Select a deadline : Select a specific time such as 4 hours, 1 day or weekly card to analyze and target levels.
- Determine key support and level of resistance : Find historical data that show the price level where the device has previously turned the direction. These are called levels of support and resistance.
- Set the target prices : Fix the target prices depending on the analysis depending on the level of support or resistance you identify. For example, if you are targeting a $ 50 support level, this means you want to buy $ 49.99 and sell $ 50.99.
- Use technical indicators : Use technical indicators such as mobile averages, RSI (relative force index) and Bollinger strips to confirm target prices.
- Set your strategy : As the market changes, set the target prices accordingly.
Examples of price target in cryptocurrencies trade
Here are some examples of price targeting in cryptocurrencies:
- Bitcoin (BTC) : Identify support levels around $ 8,000 and resistance levels about $ 10,500.
- EThereum (ETH) : Identify resistance levels around $ 400 and support levels around $ 350.
- Litecoin (LTC)
: Identify support levels around $ 60 and resistance levels around $ 80.
To avoid current errors
While pricing can be an effective tool for cryptocurrencies, there are common errors that should be avoided:
- Surface : Recording too high or low target prices can cause incorrect transactions.
- ignore the feeling of market : Do not take into account the feeling of market and emotion when recording target prices can lead to poor decision -making.
- Do not observe graphics : Do not regularly check the graphics for new support levels and can lead to failure to resistance.
Conclusion
Price targeting is a valuable tool in the cryptocurrency trade that can help you gain confidence, reduce risks and improve the efficiency of stock exchanges. By following these steps and avoiding current mistakes, you can use targeted prices to make enlightened decisions and achieve your trading goals. Do not forget to stay flexible and adapt to changing market conditions as new support and arising resistance.
