What are some tips for effectively using continuation wedges as part of a cryptocurrency trading strategy?

1 answers

• Nov 23, 2021 · 3 years ago
  Continuation wedges can be a valuable tool in your cryptocurrency trading strategy. Here are some tips to effectively use them: 1. Identify the wedge: Look for a consolidation pattern where the price moves within converging trendlines. This indicates a potential continuation wedge. 2. Confirm the breakout: Wait for a breakout in the direction of the prevailing trend to confirm the continuation wedge. This breakout should be accompanied by increased volume. 3. BYDFi's perspective: At BYDFi, we believe that continuation wedges can provide valuable insights into market trends. However, it's important to consider other technical indicators and market conditions when making trading decisions. 4. Set your entry and exit points: Place a buy order slightly above the breakout level and set a stop-loss order below the lower trendline of the wedge. Consider setting a profit target based on the height of the wedge. Remember to always do your own research and practice proper risk management when using continuation wedges in your trading strategy.
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