How To Use Price Targeting In Your Trading Strategy

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How to use the price goal in your cryptocurrency trade strategy

As a cryptocurrency dealer, you are constantly looking for ways to gain an advantage over the market. A popular approach is the use of price goals that contain the determination of important support and resistance levels that can help to lead their trading decisions. In this article we will examine how to use the price -hardship in your cryptocurrency strategy.

What is price -staring?

The price goal is a technical analysis method in which specific price levels such as highs, lows and outbreaks are identified and the next level of movement is determined for a specific asset. By determining target prices based on historical data or market feelings, you can create a frame for your trading decisions.

Advantages of the price goal in cryptocurrency trading

Price stargeting offers several advantages, including:

• Increased trust : With the price -staring you can feel more secure that your trades cut off as expected.

• Reduced risk : By identifying important support and resistance levels, you can reduce the likelihood of losing money due to unexpected price movements.

• Improved trade efficiency : The price -staring helps you to identify opportunities and to eliminate unnecessary positions.

How to use the price goal in your cryptocurrency trade strategy

Here are a few steps you should follow if you use the price goal in your cryptocurrency trade strategy:

• Select a time frame : Select a certain time frame such as 4-hour, 1-day or weekly diagrams to analyze and aim the level.

• Identify the most important levels of support and resistance : Look for historical data that show the price level in which the assets have previously reversed. These are known as support and resistance levels.

• Set the target prices : Based on your analysis, the target prices are based based on the support or resistance level you identify. For example, if you aim at a support level of 50 US dollars, this means that you want to buy at $ 49.99 and sell $ 50.99.

• Use technical indicators : Use technical indicators such as moving agent values, RSI (relative starch index) and Bollinger tapes to confirm your target prices.

• Adjust your strategy : Adjust your target prices accordingly.

Examples of price goals in cryptocurrency trading

Here are some examples of the price goal in cryptocurrency trading:

• Bitcoin (BTC) : Identify the support levels around 8,000 US dollars and resistance values ​​around 10,500 US dollars.

• Ethereum (ETH)

  : Identify the level of resistance around 400 US dollars and support of around 350 US dollars.

• Litecoin (LTC) : Identify the support levels by $ 60 and the resistance of around 80 US dollars.

Frequent mistakes to avoid

While the price goal can be a powerful tool for cryptocurrency trade, there are some common mistakes that you have to avoid:

• Over-Targeting : The determination of too high or low target prices can lead to incorrect transactions.

• Ignore feelings of the market : If you do not take into account market feelings and emotions, if the target prices are set, this can lead to bad decisions.

• Do not monitor the diagram : If you do not regularly check the diagram for new support and resistance, this can lead to missed options.

Diploma

The price goal is a valuable instrument in cryptocurrency trading with which you can gain trust, reduce the risk and improve trade efficiency. If you follow these steps and avoid frequent mistakes, you can use the price goal to make more sound decisions and achieve your trade goals. Remember to stay flexible and adapt to the change in the market conditions because new support and resistance occur.