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Author: Admin | 2025-04-28
Based on oversold or overbought conditions.However, RSI may be best used with other indicators to provide more context. In the example above, RSI signaled overbought conditions as BTC bounced off the 200-day moving average. The upward trend continued. Later, RSI again signaled overbought conditions, this time while well above the 200-day moving average. BTC had room to fall.Fibonacci Retracement LevelsFibonacci retracement levels are based on Fibonacci numbers, a series of numbers in which each of the numbers is the sum of the two numbers before it. For example: [0, 1] 1, 2, 3, 5, 8, 13, 21, 34. These number patterns are also related to the golden ratio, a proportional pattern often seen in nature, approximately equal to 1.618.TradingView offers a way to draw Fibonacci levels on a chart, as shown above. Some traders believe that trading patterns often respect Fibonacci levels, using key levels as targets for pullbacks, tops, and reversals. Because so many crypto traders use Fibonacci indicators, Fibonacci-based trading often provides a reliable price prediction tool.Best Practices for Crypto Day TradingSuccessful day trading entails as much discipline as it does chart reading. In addition to the technical skills and strategies required to be successful at day trading, several other important best practices can contribute to your success.Develop a Disciplined Trading RoutineSkipping steps in a process can be costly. Consider building a checklist for a trading routine and modifying it as you incorporate new techniques. Should you take a few minutes to study your previous trades? If so, make that a first step in your routine. Perhaps next, jot down some notes for yourself if you see patterns from prior trades. Then, you might do some technical analysis, perhaps using MACD or other indicators you understand well.Develop a step-by-step process for your trades and trading day. You can change the routine if needed but have a good reason to add or eliminate steps.Set Realistic GoalsIf you see a meme coin that gains 65,000% in 30 days, remember that traders made money throughout the chart—and many lost money. Crypto day trading strategies often only yield a point or two of gain at a time. It’s a game of small victories while minimizing losses.Manage Your EmotionsEmotion might be the leading contributing factor to day-trading failures. Treat trading like a business and avoid letting emotions to cause you buy or sell at the wrong time. Instead, use stops and take-profit orders
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