If you have just started trading and now want to move on to the next level of it, we can help. Advance trading can be made easier with the help of trading signals, we can tell you how to find and make the most of it?
It is one of the best and basic indicators available showing the amount of coins/tokens’s trading volume and activity during a specific period of time which is usually represented in the form of charts or bars.
What trading volume tells?
Because volume is so often overlooked by newbies, pros take it as a big signal and they probably won’t tell you the bigger story behind volume and its impact.
Generally, color or bars in the chart is seen as buying or selling or price movement, but it’s not always the case.. For example if a candle is closing above the candle that’s open, both the volume bar and candle itself will be green. On the other hand, if a candle is closing below the open candle then the volume bar and candle will be red.
Volume in tandem with price movement is a big telltale of the momentum. It could tell you whether the flow is moving towards upward or downwards.Thus by carefully observing trading volume you can find possible price crashes.
- In case of price going down, find the increasing volume for movement support, followed by a buyback phase during decreased volume.
- In case of price moving upwards, find the decreasing volume opportunities during pullback coupled with increasing volume support for the upward trend.
- In case you witness multiple high trading volume candles not supporting the latest trends, it could mean a reversal is impending.
MyCryptoParadise offers great insight in trading by providing crypto signals using all the indicators.
Current Market News
Changes in the economy or global market conditions are also significant crypto signals. However, there’s hardly any proof of the crypto market having any correlation with the global market. And yet Bitcoin the major cryptocurrency has shown a pattern of following Dow Jones in terms of pump and dump.
News impacting the global economy or big changes in the biggest economies of the world often tend to stir crypto prices. So if you’re starting out on crypto trading, you have to keep an eye on the latest news related to finance and economies.
Indicators use mathematical calculations and you can use those indicators on the chart you’re using. The indicators can be used to analyze and produce data in a form that is easy to comprehend and can be made useful by the traders around the world.
In crypto trading, divergence is the gap or separation between two paths or lines. Say if price flows in one direction, it’s possible for other indicators to make a move in the opposite direction. Reasons why most of the pro traders and investors keep an eye on the divergence as it could be an important signal which can be used for market analysis and then trading.
Type of divergence to look out for:
- Bull – Price reflects lower low while corresponding indicator reflects a higher low.
- Hidden Bull – Price reflects higher low but the indicator will show a lower low..
- Bear Divergence – Price represents higher high while the indicator prints a lower high.
- Hidden Bear – Price prints a lower high but the indicator reflects a higher high.
Support and Resistance Level
Among the most common technical analysis is the Support and resistance but it holds some sort of belief among the crypto community.
In simplest terms, when buying interest is more than strong enough to get over the selling pressure at a certain price level it is called Support. Basically, here the price is supported by buyers from further tumbling.
Resistance is the other side of the coin. Opposite of Support. Its condition when selling pressure conquers over buying pressure.
Reasons why we hear the term “hitting support or resistance level.” Seasoned traders take this as a firm crypto signal. It usually means a breakout or drastic price movement.