Continued models: Guide for daily merchants in cryptocurrency
As a one -day trader, you are constantly looking for models that can help you make conscious investment decisions. One of the most effective ways to do this is to study continuation patterns in cryptocurrency markets. In this article, we will enter the continuation models, how they work and provide information that is specifically adapted to the day’s traders.
What are the continuation models?
Continuation models refer to several technical indicators that are formed when the price of the asset continues to move within a certain break or on the channel after release. These models can be used to identify possible trends, blows and approvals. In the context of cryptocurrency markets, continuation models use the natural tendency of the market to return to their average reverse.
Types of continuation models
There are several models of sequelae that traders use:
1
head and shoulders (H&S) : A classic pattern at the price of the head and shoulder, followed by a lower level.
- Head and trim shoulders : Like H&S, but with an inverted form, usually indicating a revolution.
3
Continuation range (CSRB) : Where the price breaks of the channel or interval to form the continuation model.
4
Variable Modes of Average Convergence (MACD) : A combination of macd signals and continuation models to confirm trends.
How to determine continuous cryptocurrency patterns
Follow these steps to observe continuation patterns in cryptocurrency markets:
1
Select the right cryptocurrency : Focus on popular cryptocurrencies such as bitcoin, ethhereum or altcoins.
- Use technical indicators : Use tools such as graphs, candles and average change to identify possible sequences.
3
Search for leakage and repeated input level : Identify levels where prices are broken from certain channels or intervals.
- Analyze the lines and trend channels : Understand the main structure of the market and seek support and resistance.
5
Combine with other indicators : Use continuation models with other technical analysis tools such as pulse and volatility.
How continued models work
Continuation models work:
- Returning to the average reverse : Cryptocurrencies tend to return to their historical means, usually after strong price movements.
- Release from certain channels : Prices form new or low heights at created intervals, indicating the sequence.
3
New sequences : Continuation patterns can be used to confirm new trends and identify possible speeds.
Example: Bitcoin continuation model
Let’s say you look at Bitcoin’s price chart and look at a strong escape above the Upper Bollinger band. This may indicate that the market can continue to increase by creating a continuation model.
* Initial course
: The price comes out of the channel, indicating a new height.
* Trend line resistance : Price forms the level of trend line resistance (eg 40,000), above which it can be tested and potentially changed.
* CONTINUATION MODEL : If the price continues to increase, you can see another continuation model, such as the upper and upper shoulder or the continuation of the range that covers the interval.
Conclusion
Continuation models are a powerful tool for daily traders in cryptocurrency markets. By identifying these models, you can get information about market trends and make more informed investment decisions. Always remember technical analysis with risk management strategies and adjust your approach to specific market conditions.
In this manual, we analyze the continuation of the fundamentals of cryptocurrency markets.
