What strategies can be used to identify big support in crypto trading?

3 answers

• Dec 15, 2021 · 3 years ago
  One strategy to identify big support in crypto trading is to analyze historical price data and identify significant price levels where the price has previously bounced off multiple times. These levels can act as strong support and provide buying opportunities. Traders can use technical analysis tools such as trendlines, horizontal support levels, and moving averages to identify these key levels. Additionally, monitoring trading volume can also provide insights into the strength of support levels. High trading volume at a specific price level indicates increased buying pressure and suggests that the level is likely to act as strong support.
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• Dec 15, 2021 · 3 years ago
  Another strategy is to look for chart patterns that indicate potential support levels. For example, a double bottom pattern, where the price forms two consecutive lows at a similar price level, can signal a potential reversal and the formation of a strong support level. Similarly, a bullish engulfing pattern, where a large bullish candle engulfs the previous bearish candle, can indicate a potential support level. These patterns can be identified using candlestick charts and can provide valuable insights into potential support levels in crypto trading.
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• Dec 15, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends using a combination of technical analysis and market sentiment analysis to identify big support levels in crypto trading. Technical analysis involves studying price charts, patterns, and indicators to identify key support levels. Market sentiment analysis involves monitoring social media, news, and forums to gauge the overall sentiment towards a particular cryptocurrency. Positive sentiment combined with strong technical support can indicate a high probability of a price reversal and the formation of a major support level.
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