All crypto traders are interested in the question of when it is better to buy cryptocurrency and at what points to put it up for sale in order to get the maximum profit. On whether the points of entry and exit will be determined correctly , whether a part of the income will not be lost while reducing the cost of one or another altcoin directly depends .
If you ask the traders who trade not the first day, each of them will confirm that they can determine successful moments to determine profitable positions for buying and selling an asset. Someone does it just by fluently analyzing graphs , and someone needs to resort to technical analysis toolsand collect enough data. Only in this way can they be sure that they have determined the most advantageous positions. One of the simplest options for determining entry and exit points is the analysis of resistance and support lines . This method is the least risky and provides the maximum chance to close positions with a good profit. This is the strategy that starts trading for beginners. and only after a while more complex options are sorted out and tested.
Work with support level
While building the uptrend line, you should rely on two main points of the price barrier . The third point reinforces the trend and it is the best moment to open trading positions . In the case when the trend is down , the situation is similar only with the difference that the third point is regarded as an excellent signal for the sale of cryptocurrency .
This trading method is very simple and quite reliable. At the same time, during crypto-trading , false breakdowns should be taken into account . This is a situation where the level is tested by price, but quickly comes back. The surest way to make sure that the breakdown is true is to wait for the second candle to complete .
Entry points at the break of the resistance line
One of the methods experienced traders use is opening positions during a breakout of resistance levels . Even those who have spent a little time on the cryptocurrency market know that during a breakout level you can take a good profit . If the entry point is defined correctly, the expectations pay off sufficiently.
In this approach, when the trend level is broken, you should wait for the second candle to close to make sure that this is not a false breakdown . It is for this candle that the entry point is determined.
This is an excellent signal to buy in the event that an uptrend at the beginning of its development and a high potential for further growth has been accumulated. Confirm it can be based on other tools of technical analysis cryptocurrency . In order to minimize risks, in such a situation it is recommended to enter the market using limit orders and closely monitor potential correction zones .
It is worth noting that the corrective movement most often does not happen more than 38% of the completed fall, which preceded it. After, as a rule, the price jumps upwards . The zone that formed between the 38%point and the last peak is a good time to buy an asset.
At the moments when the trend has reversed and the cryptocurrency market begins to fall , you can see it on the chart as a breakthrough of the support line. One of the best strategies is to sell coins above this line with a minimal puncture.
Opening and closing positions using countertrend
Another strategy for determining entry and exit points using trend lines is buying and selling on a countertrend . It is often possible to observe how an uptrend countertrend growth is recorded immediately behind the trend line . At such a moment, the resistance line becomes the support line. When the price values on the charts relate to this line – this is an excellent signal to buy assets .
In the opposite situation, when the support line is broken by the counter-trend and turns into a resistance line, this can be an excellent opportunity to take profits . The situation will be especially successful if correction zones are clearly visible next to it.
Determination of entry and exit points in the flat
The techniques outlined above work fine in cases where the uptrend or downtrend is clearly expressed on the charts. At the same time, there are options in crypto-trading , when you can make good money even during periods of conditional stability corridors. Side trends are especially loved by those who prefer medium-term and short-term trading with cryptocurrencies .
In the opposite situation, when the support line is broken by the counter-trend and turns into a resistance line , this can be an excellent opportunity to take profits. The situation will be especially successful if correction zones are clearly visible next to it.
To determine the optimal points of entry and exit, the side-trend zone is conventionally divided horizontally in half . When the cost is chosen above this line , this is a good signal for opening positions . When the chart falls below – traders regard such a moment as a good signal to sell . This technique is based on the tendency of the market to cyclically fall and rise during the border crossing, which divides the flat trend zone in half. As a rule, in the flat, traders with experience are trading more actively , while beginners are waiting for a clear trend to appear.. The ability to work with this tool will accurately provide an advantage and will have a positive impact on trading results.