CryptoMode Bitcoin Trading Fast Private Jet

You are probably aware of the cryptocurrencies buzz. Bitcoin is now the in thing worldwide. According to Yahoo’s historical data, bitcoin is trading at $55k (march 2021) up from about $5k in march last year. This means that if you bought some bitcoin a few months ago, you have multiplied your wealth significantly.

If you have not joined the crypto trading bandwagon, you are not late. The high demand for and high volatility provides a massive opportunity to trade cryptocurrencies and get handsome profits. But how do you trade cryptocurrencies profitably, you ask?

Well, we shall look at the five top cryptocurrency day trading set up you should know. But first, let’s explore what is day trading and why is it important to use day trading setups.

What Is Day Trading Set Up?

In trading, anything can happen. Therefore, predicting market movement is not an easy job. For this reason, you require a tool to help you determine the best time to enter the market and make good profits. This where setups come in handy.

Trading setups are chart patterns that predict what is about to happen in the market. In fact, they reflect trading psychology. This means that they portray a bigger picture of what is happening in the market including how the traders are thinking and reacting. Chart patterns are developed over a long time after observing different markets.

That said, you must keep an eye on the market to notice when a perfect opportunity arises. These patterns have proved useful in trading bitcoin and other cryptocurrencies due to high volatility and massive price movement. The best way to practice day trading cryptocurrencies is on a crypto demo account that many brokers offers free of charge.

Why are Day Trading Setups Important?

Coming up with a good trading strategy is an exacting task. Luckily, a setup can help you develop a good strategy by providing some certainty in the market. It provides a perfect time to enter a trade and make profits. A good day trading set up give offer efficient and certain market entry and exit points.

Think about real life. We use historical data and patterns to make predictions. In fact, real-life patterns determine how we act. For instance, previous experience helps you find the best time to beat traffic or buy a certain product.

The market operates the same way. Cryptocurrencies setups tell you when it is likely to make profits depending on previous market behavior. Now let’s look at some of the best settings that are effective for day trading.

Top Day Trading Setups

1.   Triangle setups

Triangle setups work perfectly in volatile markets. Luckily, cryptocurrencies boast volatility attribute. Therefore, this setup provides great potential returns in the cryptocurrency market.

There are three types of triangles ascending, descending and asymmetrical. Usually, triangles form during lunch hours in the US and the trend resumes as volatility picks up.

The idea is to wait for the market to pause and catch the markets as it drifts from the triangle.  Triangle formations require at least two swings low and two swings high connected with trend lines extending to the right. They are quite similar to a flag set up.

So how do you trade cryptocurrencies after identifying a triangle setup? Well, it is pretty simple and straightforward. Simply sell at the most recent swing high and buy at the swing low to maximize profits.

2.   Breakouts

Breakout is one of the most profitable market setups.  The basis of breakout trading is identifying resistance and support levels. The next step is to buy when the price breaks the resistance level and sells when the price breaks the support level.

Swing highs and swing lows also provide great break out setups. In this case, the market forms a V shape after a strong rally followed by a strong sell-off. This strategy is known as swing high and swings low breakouts.

Additionally, Instruments such as bitcoin record gaps on market due to high volumes. The gaps are usually related to a news event. In this case, you can use a fade the breakout strategy which involves taking advantage of a blip in price. The trader bets against a move that takes the price out of the chattered territory. However, you should not confuse this with trading against the trend.

3.   Range trading

The market is ranging most of the time. The market prices range 80% of the time. Therefore, It is important to be conversant with range setups.

When a cryptocurrency market is range-bound it oscillates within specific price levels. As a trader, you should ensure the price range does not break outside the resistance and support levels. Remember, for the market to qualify as range-bound it should form at least two highs and lows.

The easiest way to trade ranging setup is to buy near the support zone and sell at the resistance level. The profit target should be near the support level for a bearish position and resistance zone for bullish entries. In general, the right time to enter the trade is when the market breaks the flat range.

4.   Flag

One of the best setups for trading cryptocurrencies is flags. Flags are quite simple to identify and quite straightforward to use. Since flags incorporate trading psychology they have a relatively high winning rate.

I know you are eager to put the flag set up into action, right? I thought so. Here is how to go about it. Look for cryptocurrencies that have a high bullish movement. The good news is that most cryptocurrencies are currently on an uptrend. For instance, bitcoin is experiencing an insane proliferation of price.

A strong movement in the market forms a pole. The flag forms as the asset price consolidate at the pole. A flag that forms with less than 23.6% retracement is the strongly trending flag and provides the most perfect entry.

Flags are easy to understand. They also form small candles hence relatively less risky. This makes the setup beloved by day traders.

5.   Cup and Handle

Cup and handle is a bullish continuation set up. This chart pattern is perfect for cryptocurrencies, which are currently riding a bullish trend. Essentially, the market forms a round bottom pattern (the cup).

The handle is retracement that forms after the round bottom pattern and is confined by parallel lines. To give a clear picture, handles are similar to the wedge pattern. The asset then resumes the overall bullish trend completing the cup and handle setup. The whole idea is to buy after the retracement wedge.

Conclusion

The cryptocurrency market is experiencing significant growth. The increase in market participants and high volatility provides a great opportunity to make a profit. If you are still stuck on how to start trading cryptocurrency this guide will get you started. Why not start today?


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