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Author: Admin | 2025-04-28
In previous price movements and then use those to try and predict future movements.Some patterns emerge frequently enough across multiple markets that they’re given their own names, such as resistance and support. Others can be much more obscure and aren’t given names of their own.For example, if you think Bitcoin goes up when Ethereum goes down, or that Bitcoin rises when the US dollar falls relative to the Chinese renminbi, or anything else you can think of, that could be a pattern you can trade on.While patterns can be very helpful for traders, it’s worth remembering that past performance is not always a reliable indication of future performance.2. Make a plan and stick to itThe following are the 2 basic components of a trading plan:A point where you take profitsA point where you cut your lossesFor example, someone’s basic plan might be to sell 33% of their Bitcoin for every $1,000 the price goes up (taking profits) or to immediately sell all their Bitcoin if prices drop below the current support line (cutting losses). To lay out this plan, they could set up a series of stop-limit orders.This is not necessarily a good plan, but it would ensure that the amount they gain or lose is within sensible boundaries no matter what the market does.As traders get more experienced, they can create increasingly sophisticated trading plans that tie together more market indicators and allow for much more nuanced trading strategies.Experienced traders typically use cryptocurrency trading bots to execute their strategies
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