Bitcoin Forum

Greetings all
On this occasion I want to share tips on trading Cryptocurency which I happened to read in one of Steemit's articles, although this is an old article but I think it still applies until now or maybe for a long time ... Cheesy
So before trading, we must first understand what steps are needed to become a trader. Because trading is an exact science, not a forecast or gambling.

Step 1: Understanding the Candlestick and the Movement Pattern

Understanding candlesticks and their movement patterns is very important in trading, why? Because Candlesticks can predict the movement of bitcoin prices in the next few candles. By understanding the candlestick and its movement patterns, you can predict the trends that will occur. Like the saying, "history always repeat its self" or history usually occurs repeatedly. For that, you need to know the usefulness of candlesticks in order to profit from bitcoin trading on the market.

Step 2: Perform Technical and Fundamental Analysis

Before trading, you must learn to analyze bitcoin price movements technically, that is by understanding indicators and trading tools that are in line with the characteristics of the bitcoin movement on the market. You also need to be able to analyze the news (fundamental analysis) both global news and news events that appear at any given time and its nature can affect the movement of the bitcoin price trend.
What if the results of the Technical Analysis with the Fundamental are opposite ??
Well here I personally suggest there are 2.
If you are a Trader short Term, then take Fundamental Analysis, because the reaction from News / Event is usually fast so we can take a short take profit action.
And if you are a Long Term Trader then stick to Technical analysis.

Step 3: Understanding Bitcoin Movement Characteristics

Bitcoin price movements in the market have certain characteristics that are influenced by several factors in the form of fundamental and technical news, as well as certain other things that have their own uniqueness. The more often you trade, the more you understand the character of the bitcoin movement, to become the natural instinct of a pro trader.

Step 4: Using the right indicators and trading tools

On the provider chart platform (eg: bitcoinwisdom.com, etc.) we will find various choices of indicators that will be used. Unfortunately, we are often confused to choose indicators that you must follow, so choose the best and according to the character of the bitcoin movement on the market.

(For problems Which indicators are the best and most frequently used, I will share them in the next Post)

Step 5: Predict the direction of movement of the Trend

Trends indicate the direction of movement of a commodity traded in a market. Both up and down trends will provide an opportunity for us to benefit if you find out first. in order to analyze the direction of trends in the bitcoin market you should use the following guidelines:
- Indicator: use the indicator of alligators and fractals from Bill William. Just two of these are enough to analyze trends, because the more indicators you use, the more confused you will be in ascertaining the direction of the actual trend.
- Time Frame: use the time frame W-1 and Mn to determine the primary trend, because the trends are more definite and accurate. In addition, also use the D-1 time frame to monitor the daily trend movements that are taking place in the bitcoin market.

Step 6: Determine the Support and Resistence Levels [R]

The level or psychological level in the commodity market, especially bitcoin, has a very valuable meaning. He can show or describe a boundary map where we can open buy or open sell in certain areas limited by S / R.
In addition, the S / R level can serve as a signal of reversal or retracement even continuity of a trend. Therefore, this S / R level is so important when we are trading. However, this level can function properly if it is made on the D-1 chart or above graph, namely the W-1 or Mn graph.

Step 7: Use the right time frame

Sometimes we are confused about which time frame to use when trading. My advice is, in bitcoin trading you use D-1 or above time frames, W-1 and Mn, because it is much more stable compared to the time frame H or below. Low time frame usage, is often confusing in predicting actual bitcoin price movements, because the graphs formed by time frames tend to be unstable and often form whipsaw, so it is difficult to predict.

Step 8: Predict Retracement and Reversal

Every bitcoin price movement in a graph that is seen on the platform when undergoing a trend, both up and down, will definitely be followed by a retracement of price movements which is a resistance of the ongoing trend.
By understanding retracement, we can take advantage of the opportunity to take profit at that moment. Likewise the need to understand Reversal, where we can determine when we have to get out after taking profit and take the opposite position to get the next profit.

Step 9: Read the global news and news events that will appear

In trading, we need to pay attention to what news (news event) will appear and what time the news is released. In addition, global news that is going on that can affect bitcoin price movements is also important.
But you should not be too affected, because based on the experience of trading this effect is ONLY COMPLETE, and then the price will move in line with the ongoing trend.

Hopefully it can help for beginners
and don't hesitate to give the merit.
thank you

I am amazed at people giving tips for trading techniques or how to start trading. This thread will help the newbie so they will not be afraid of trading. It's good to have full explanation and have images to better understand new members.