Good night steemi'an
In accordance with the post that I created yesterday, then today I will fulfill my promise to give a few simple tips in analyzing the market. Make the market is our friend, hehehe
Now we will learn simple technical strategy in trading cryptocurrency, using exponential moving average, this is an indicator used by world traders in analyzing market price related to the chart, Note: I use Bittrex Exchange. Well on this occasion we can see on etherium coin chart that I have entered two MA inidicator only, with setting period 21 and 8, field close, type exponensial and offset 0 .
Can be concluded that moving average is very profitable and very simple indicator, why I say very simple we just reading at trend and signal for open order.
Now let's we see at the exponential moving average setting.
Looks very easy is not it? Yes very easy to understand for the setting stage EMA 21 and 8, then now we try to discuss about how to identify trends and signals for oper order,
Now we see the picture above to determine the real trend is very easy, with the indicator moving average 21 and 8, if the EMA 21 is red and EMA 8 is blue under the candle stick or chart shows the trend is ascending, and both EMA 21 and 8 are crossed this will be a solid trend, then can be slightly combined with the price treatment, that means any rising price will do retracement or back down for a moment to continue the current trending up.
If we want to do order with price retracement, The price will re-shape the EMA 8 indicator, this is what we wait for the purple order, so our focus is just looking for buy when this happens, it is very easy is not it? Yes surely everyone says this is very easy.
Basically trading is very easy if we have the right plan and system for ourselves, and the psychological control, because in analyzing the market we must have 70-90% accuracy analysis to minimize the risk of loss in trading... And rest assured all market participants will success if we can discipline ourselves in doing analysis and making decisions.
Greetings steemian's
Follow me: @munt
SMA & EMA also helped me a lot when I started trading, I don't think I could have given such a good explanation of it like you did, keep up the great content!
thank @matteroffat, ,, SMA and EMA simple and easy to understand :) ...