Quick Tip #2: How To Trade Cryptocurrency Breakouts



what is up guys Kyle Stevens here from crypto coin mastery comm bringing you a brand new video today we're going to be talking about how to trade a breakout effectively in crypto currency trading so what exactly is a breakout well it's when a price crosses a resistance or a support level and I would say an aggressive manner so in this situation the breakout is going to be this point right here so the price basically jumped around 15 or 20 percent in a very short period of time and the biggest issue that I see many beginner traders do is they see the coin breaking out and when they see that they decide that it's time to buy and oftentimes what happens is they end up buying very close to the top of the breakout and that's not going to be beneficial in many situations in reality you want to plan for this breakout and have your orders put in place before it even happens so how can you do that what are you looking for what's the exact strategy that I would use in a situation like this so there are two signs that you want to look for you want to look at the current pattern of the market and you want to look at the volume within the market so when I'm talking about current patterns there are various different bullish patterns that you can look for and it just really depends if you go into the description of this video there's a link to a free cheat sheet that contains a bunch of bullish patterns that you can look at so that you can really understand what patterns mean different things but what you're looking for is a bullish pattern so in this situation what we're seeing is a basic ranging market that is looking positive and making a run towards the current immediate resistance level so in this situation what you're saying is okay well we're making a run at the current resistance level what happens if it breaks through when a situation where we break through the resistance the most likely place where we're going to start to settle is the next immediate resistance level in this situation it's this green line that I just drew based on this older information that we have so if I'm looking at the potential gain that we have by buying this breakout it's about a 10% gain or so which would be a great situation to try and buy and capture some quick gains when I was talking about volume what we want to look for here is a decreasing volume when volume starts to decrease it's actually a sign that there's a possibility for a strong breakout especially if it's decreasing volume and an increasing price towards the resistance it's a very good sign that a breakout is coming so what you're gonna do here is you're not just going to buy when it's at the resistance level no that's not the smartest thing to do actually what you're going to look to do is buy as it crosses past the resistance point and this way you don't actually get stuck in the trade so I might actually put my order here at 771 or 772 or in that range because if you're in that range you're confirming that the breakout has occurred before you actually go and put in the order so the way you're gonna do this is you're gonna put a limit order up above the resistance level and then once that order triggers you can go ahead and put your sell order a little bit below the next resistance level doing something like this could very easily get you a very quick 7 8 percent gain in this scenario so I hope this was a great quick tip to help show you guys what to look for when you are trading breakouts if you guys have any questions please go into the comments below and ask but again guys my name is Kyle Stevens I am from crypto coin mastery comm and I will see you in the next video peace out guys

3 thoughts on “Quick Tip #2: How To Trade Cryptocurrency Breakouts”

  1. I really love the content and teaching you are sharing in these Quick Tips. Your topics in the CryptoDaily series are great too, but at roughly an hour they are simply way too long for me. If you could get them down to 30 to 40 mins I would be much more inclined to watch them.

  2. Thanks man, good info. Two questions. When you say to set a limit order. if i do that on bittrex through coinigy it just executes directly, so i would need to use a stop limit at the breakout levels? Also, i cant figure out how to increase the height of my volume bars on coinigy, so you know how to? Mine are barely visible in the bottom..

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