Continuation Models: A guide to traders in the cryptocurrency market
The cryptocurrency world is known for its volatility and unpredictability, which makes it a difficult market for daily traders. However, understanding the continuation of models can provide a valuable insight into the price of movement and help traders make deliberate decisions. In this article, we will check what the continuation models are, how they work and some key strategies to include them in your trade approach.
What are the continuation models?
Continuing the models refers to a certain type of technical analysis model that appears when the trend is divided or rejected in favor of another. These designs are often characterized by a “bent” or curved shape indicating that the price is trying to get rid of the previous resistance zone or support zone.
Types of continuation models
There are several types of sequel models including:
1 Head and Hands : A classic model in which high and low prices form “head” and “hand” respectively.
- Reverse head and hands : The opposite version of the head and shoulder model in which the “head” is above “hand”.
3.
- Trend Line break
: When the trend line is broken and new high prices are formed.
How to determine the continuation models
To identify the continuation models, you need to analyze different technical indicators such as:
1 Medium Walk (Masses) : The average price of a coin over a period of time can help determine trends, resistance and support.
- Relative Strength Indicator (RSI) : RSI measures a recent price change in order to determine the purchased or sold out rules.
3 Bollinger teams : These teams emphasize the variability and provide market moods.
The main strategy continues to turn on models to trade approach
After identifying the sequel model, here are some key strategies to include it in a commercial approach:
1 Profit : Set the profit level based on a breakthrough or when the price reaches a specific goal.
2.
3 Trade Company : Use the sequel models as a trigger to introduce new transactions, such as buying or selling coins based on a specific model.
Example of continuation of the operation
Consider an example where we identify the opposite head and shoulder model Bitcoin (BTC/USD) for $ 28,000. We note that the price is “head” above the previous resistance level ($ 29,500) and then below ($ 27,800). However, if we pull out this model, we can use the growing hurry and enter the long position.
Application
Permanent models are an indispensable tool for day traders to gain insight into cryptocurrency market prices. Understanding these models and including them in a trade approach, you can make more conscientious decisions and increase your chances of success. Remember to always use risk management techniques and remain disciplined when entering the deal.
Additional resources
There are some recommended resources here for further lesson:
* Cryptoslater : A site dedicated to cryptocurrency, analysis and observation.
* CoinDesk : Leading online publication for cryptocurrency messages and trends.
* Tradingview : Platforms that offer charts in real time, technical indicators and trade ideas.
