cryptocurrency: Price Strategies for Dogecoin trade (dog)
Dogecoin, the popular cryptocurrency and my meme, trades at the head of the digital assets market. Thanks to the relatively low price, compared to other cryptocurrencies, it is necessary to identify key patterns and strategies of effective dog trade. In this article, we will examine some effective price strategies in the field of Dogecoin trade, as well as a comprehensive guide on their use.
Understanding the price of the price
Price action refers to the visual representation of cryptocurrency price movement, including trends, support and resistance levels and variability. Effective traders must be able to recognize and analyze these patterns to make informed decisions. When it comes to Doge trade, you must focus on the following key aspects of his price shares:
* Trends : Identify long -term trends by examining the price direction in longer periods.
* Horizers of support and resistance : Find potential levels of support and resistance in which prices are reflected or reversed.
* variability : Analyze variability indicators such as rotation volume and range to assess market moods.
Price strategies in the field of dog trade
Here are some effective dog trade strategies:
- CROSSOVER of average movable : This strategy includes the purchase when the short -term movable average is exceeded above the long -term (MA).
- The following trend
: Use technical indicators such as RSI, MacD and Bollinger bands to identify trends.
- Trading range : Identify the range in which prices change between the levels of support and resistance.
Example: Medium movable crossover
Suppose you look at the Doge price chart and notice that the short-term (7-day) will exceed the long-term (21 days). You can take a long position when this crossover occurs, because this may indicate a potential trend up.
|. Date Short -term has Long -term has
|. — | — | — |
|. April 1 100.50 | 120.00 |
In this example, the crossover took place on April 4. If you bought a USD 0.070 for a dog at a price, when he exceeded the long -term MA, you can sell at the same level of price, if it falls below.
Example: the following trend
Let’s assume that the Doge price chart shows a downward trend, and the short-term (7-day) intends to exceed the long-term (21-day). You can take a short position when this crossover occurs, because this may indicate a potential reversal of the trend.
|. Date Short -term has Long -term has
|. — | — | — |
|. April 1 100.50 | 120.00 |
In this example, the crossover took place on April 4. If you were to sell at a price level 0.070 USD for a dog, when he exceeded the long -term MA, you can buy at the same level of price, if it increases above.
Example: Trade range
Suppose you look at the Doge price chart and notice that it broke through the level of resistance (50-day ma). You can take a long position when this happens, as this may indicate a up trend. However, you should also be prepared for the sale of your positions if the trend reverses.
|. Date Short -term has Long -term has
|. — | — | — |
|. April 1 100.50 | 120.00 |
In this example, the resistance level was achieved on April 4. If you bought a USD 0.070 for a dog at a price, when he exceeded the long -term MA, you can sell at the same level of price, if it falls below.
Application
Price trade is a key aspect of cryptocurrency markets, and Dogecoin is no exception. By mastering key concepts, such as trends, support and resistance levels, variability indicators and average movable, traders can make conscious decisions and increase their chances of success in this space. Remember to always be aware of market moods and adapt your strategies properly.