How to identify bulls and wear trends in crypto currency
The world of cryptocurrencies is known for its instability, unpredictability and rapid growth. As a new investor or merchant in a cryptographic space, it is important to identify the trends of bull and bears for a deliberate decision. In this article, we will study the basics of this identification of trends, models and indicators used by traders and how to use them effectively.
Understanding bull trends
Bullish trend occurs when the price of cryptocurrencies increases over time, stating that more customers come to the market than suppliers. This may be due to different factors such as:
- Increased adoption : As multiple users accept a certain crypto currency, the demand for IT increases, increasing the price.
- Improved infrastructure : Development of new infrastructure, such as exchange and wallets, promotes transactions and attracts investors.
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Positive Mood : Positive news or project events can generate Hype and increase the price.
BIKE TREANDATION Identification
To identify the Trend of Taurus in the Crypto Currency, seek:
- increasing volume : sudden growth of trade indicates increasing interest and acceptance.
- New partnerships and collaboration : partnership with established companies or organizations can signal increased cases of investment and use.
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A positive market mood : a large volume of sales on social media platforms such as Twitter and Reddit often indicate a positive trend.
Bear trends identification
The trend of bed happens when the price of cryptocurrencies decreases over time, stating that more suppliers enter the market than customers. This may be due to different factors such as:
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decrease in adoption : Reduction of user acceptance or interest in a particular project can lead to lower demand.
- Infrastructure Questions : Technical difficulties with platform or infrastructure may distract investors and users.
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negative messages or events : negative messages or events on the project can generate fear and sell pressure.
Bear trends identification
To identify the bearded trend of cryptocurrencies, look for:
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Volume connection : A reduction in the amount of trade indicates a reduction and acceptance of interest.
- Reduced partnership and cooperation : a reduced partnership with established companies or organizations may indicate a reduced investment.
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negative mood on the market : low volume of trade on social media platforms such as Twitter and Reddit often signals a negative trend.
Types of indicators that traders use
Traders use different indicators to assess the power and direction of trends in the cryptocurrency markets. Some are widespread:
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Relative strength index (RSI) : measuring recent prices changes to determine excess or sales conditions.
- A moving average (ma)
: Calculate the average safety price in a particular period, helping to determine the direction and durability of the trend.
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Bollinger Bands : Middle -value movement with standard direct structures helps determine volatility and possible breakup.
- Support and resistance level : identification of the main level of support and resistance based on historical data and moods on the market can help traders predict prices.
How effectively apply indicators
Consider the following questions to effectively use indicators in your trading strategy:
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Use a combination of indicators
: Combine a few indicators to get a more comprehensive trend account.
- Reading the monitor indicators : Continuously monitor the readings and adjust your strategy as needed.
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Transport storage trading : trade in certain trends, avoiding impulsive decisions based on short -term fluctuations.
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