Well, looks like BTC is all set to keep going up, just checking and there is lot of** volumes in buying and the price of BTC is above the 200 day MA, 100 and 50 day MA.**
I am learning how to study these trading charts so I that I understand *where the asset price actually is heading *and also most importantly to know when to exit and sell my holdings when prices are falling as against a mere short time pullback
Note - At the diagram of the trading chart from Coinigy, the price of BTC at the time of writing this article is above all the MA’s talked about above with the - 50 MA of BTC at 11619., 100 MA of BTC at 11186. And 200 MA of BTC at 10363.
Here is a hurried tip to keep safe trading in cryptos -:
**Invest in a good trading chart **
There are charts they show in Binance and other exchanges but they don’t offer all features. If you invest in a good chart from https://www.coinigy.com/ or trading view, you can see trading movement of asset for all periods - 1 year, 1 Day, 1 week etc and it’s comprehensive.
After this you can do analysis of all crypto assets you are into.
Using these charts check if the price of the asset is above the 50 MA, 100 MA, 200 MA levels. Generally, the 50 MA would act as support with the resistance level being the price level the asset is trying to break through at the short term period.
If the asset price has gone below the 50 MA, next support would be located at the 100 MA. This definitely shows that in the short term price increase movement is subdued but in the medium term outlook price action should be positive.
If the crypto asset price is not able to find support at the 100 MA, and it goes to the 200 MA, it means the long term price action should be positive and the crypto price is not going to crash, since enough buyers are there supporting the asset at its 200 MA price level.
If the price goes below 200 MA, it’s going to be panic*. So maybe if your invested in BTC now and if there happens to be a pull back then provably put *a stop loss *at the 200 MA level. Sell, if BTC is not finding support at this price and just be happy with whatever profits your got or losses you will not make as the crypto asset keeping going down as it failed to find support at the 200 MA.
With Coinigy, you can** set alerts** where you know when a crypto asset price has reached a particular price level where you want to buy or sell the asset.
Using this MA, simple moving average concept you will know when to do a lot of valuable actions.
This includes when to buy an asset that is lowered in price after a pullback, when to sell an asset that is losing price movement and weather to hold an asset when its price movements are pretty volatile.
Simple Moving averages are just average price of asset over a period of time - 50 day, 100 day and 200 day. Please see exact definition for further clarity. I take it that its the average of the closing prices of an asset over a 50 /100 /200 days period.
Support levels is the level at which buyers are there to buy the asset thus* making a strong floor for the price of a crypto asset* that is stopped from falling down below a certain price level.
Resistance level is the price level the* asset targets to reach, but there is a ceiling and resistance at this price level* because there are sellers here that are preventing the price of an asset to rise above a particular price level.
When this resistance is broken, it becomes the new support price of a crypto asset.
Well, be careful when holding your cryptos, and just know the price level to sell it and set stop loss, stop limit , it will help you to understand when to sell your crypto asset and limit your stress in trading.
Happy trading.