Cryptocurrency Trading Basics #1 (Trend Trading)



hey guys welcome to another video today I'm gonna be telling you guys how to identify basic trends and just some basics before you get into trading or using any trade bots now this is pretty much things you need to know for all types of trading on pretty much any market but especially in crypto currency since it's so volatile these types of trends and patterns happen all the time so today I'm gonna be telling you guys how to identify these trends and patterns now this is a basic video for people who are just getting into trading so I wouldn't recommend you experienced traders watch this but anyways let's get right into the video so first off here we're looking at Bitcoin and here we can see a very common trend in the cryptocurrency market now before we get into that trend I will tell you guys how to find the support and resistance points of a coin and this can help you guys determine when to buy and sell the coin and good spots and good sell points when trading so pretty much first off we see here that Bitcoin tried to push the price of $20,000 on this pump now obviously once it tried to reach this price that was a very obvious resistance as it was a price that it did not achieve and now we can also see some very heavy selling right before it is trying to break it once again so that's a very easy resistance we can identify pretty much resistance is just a price that a coin tries to reach maybe there's a big cell wall there there's a lot of cell pressure at that price and pretty much once it breaks that price once it breaks that cell wall on the coin then it can allow the coin to go a lot higher because there aren't as many people trying to sell it because they think it's going to go down after it hits that price so pretty much that is what a resistance is and next what we want to find is the support this is pretty much the price that the coin will not go below or maybe the trend of the price that the coin will not go below so as we can see here Bitcoin did get a low of around thirteen thousand five hundred dollars now as you can see this was a pretty obvious a support here after it hit this low as did try to push it almost three times and it could not break it so there are obviously a lot of people at this price trying to buy Bitcoin because they think oh it's so cheap this is a really good price that's going to go up so that is a very obvious support for Bitcoin so now that we have identified our support and resistance we can also look more into the chart and try to identify some shorter term patterns so first off let's go ahead and try to find the shorter term resistance so as we can see here around this price which is $18,000 Bitcoin tried two times to get that price and it couldn't break it now this is a very obvious resistance as it tried to break this price not only after it pumped to its all-time high of $20,000 but also a little bit after that you can see right here it's go it did go above 18,000 just for a little bit but then it failed and went back down which then causes more people to place orders it's 18 thousand to sell because they think Bitcoin isn't going to be able to go above that price again so this is a very obvious resistance for Bitcoin and so I would definitely mark 18,000 as a resistance now this is all assuming that we're for example right here and the market so as you can see here already with this period we have all three of these lines and can identify that when the next move is going to happen now there is one more trend within this move on Bitcoin here that we have not found yet and that is a wedge pattern trend which I will pretty much show you guys in one second but pretty much what the wedge is is it pretty much has higher lows as it goes up to try to break a resistance so as we can see here the resistance was obviously $18,000 and after it hit its low of 13,500 we didn't we did see too low higher lows here and they did create a pretty nice trend which you can then see confirmed right there but what you can do early on even before all this happens so you could have started once again right in this area you could create a wedge just like this so the important thing for a wedge is to try to hit all of the lows or supports that you see now the wedge is useful to not only find a point at where it might break out to a higher price above the resistance but this can also help determine when it's going to go on a downtrend so for example if it would have gone up to here and then instead of going upwards we did see a breakout downwards we most likely would have seen a sharp price crash sort of going down to around 13,500 which is our support and then it would probably move from there probably go up a little bit and maybe try to retest our support of 13,500 but this is a very simple way to you know find good buy or sell points as you could sell if it hits this line right here or buy when it for example breaks our resistance of 18,000 dollars and you know using this you could have bought at the bottom you could have bought on these two supports here on the trend so you know this is really good to identify some movements and this was definitely a big move in Bitcoin and it's certainly not over you know we couldn't see it pushed the twenty thousand dollar resistance in the future but you know this is just some basic support and resistance trading on Bitcoin now I do want to say this does work better on longer periods especially on altcoins as they can be very volatile short-term but it does work a lot better with longer period candles so pretty much I would recommend probably two hours or one hour as your candle and some altcoins do we even need periods of you know one day or five hours something more along those lines now another very easy place where you can use this type of trading where you can just find you know some sort of friend is for example right here you could have seen that it keeps getting these highs on around 2 or 3 candles here and then you could have confirmed that this was a downtrend as you can see here it had this high and then a lower high of these two candles which then confirms that it is going on a downtrend as it kept going down and then we see it broke its downtrend right here as soon as it broke this line which we've created from these two candles and its all-time high and then we saw it go up and then you know rebound all the way up to you know Bitcoin pumping and you know that's another very useful way of using these trends just for small patterns now I also want to show you guys some of the patterns that you can see in the market this was one of them this is called the wedge and they're all there are a bunch of different types of wedges let me just show you guys a picture here this is for example what we see here and ascending triangle so pretty much you know it has this uptrend with higher lows and that eventually breaks the resistance but we can also see the channel the triangle that you know is a little bit more sideways and then can either break out up or down then we also see this channel these are all once again identified through support and resistances so pretty much once you have your support and resistance based on the trend you can then find these little patterns here which can then benefit you to predict when things are going to happen so there's also the head and shoulders which is whenever tests you know a higher price around three times there's also the triple top so this would have maybe happened for example at 18,000 as you can see here bitcoin tried to push it one time here two times right here and then this would have been the third time and then we could have seen a correction set it's an example of a triple top and you know we also have the flag the pennant the double bottom this is another thing that we see very common in the market where it pushes the bottom support two times so if this had gone up and then down one more time to the support it could have rebounded and tried to push higher-priced once again and you know these are just some basic ones I will have this picture in the description but anyways guys if you guys have enjoyed this video I hope I hope this helps you learn some basic trading and also helps you with trading with gun bots and other things in the market but anyways guys thanks for watching

11 thoughts on “Cryptocurrency Trading Basics #1 (Trend Trading)”

  1. Great tutorial. Looks like I may need to look into this at some point. Is there a place where you explain the software side of things, including the software's you use and witch ones have worked best for your applications?

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