Making Money, or in other words, creating assets has become quite easy with the rising popularity of cryptocurrency but with a risky proportion. And now that you are in the right place now, you will get a step-by-step guide on how to start buying and trading cryptos.
So, Let’s deep dive in the world of cryptocurrency and get the answers to the most common questions – How To Find Crypto Breakouts
How to identify a breakout in crypto trading?
Volume and candle analysis are perhaps the best indicator combination for identifying a real breakout in crypto trading. In summary, when trading breakouts, the key indicator to look for is a break in an established support or resistance level that is sufficiently backed by high trading volume.
What is fake breakout?
Fakeout = when a setup that looks like a breakout fails. Breakouts tend to happen after periods of reduced volatility at the end of patterns, and often signal a trend reversal attempt by market participants. A breakout can be a strong sign that the price will keep moving in the direction of the break.
What is a descending channel Breakout in crypto trading?
During a descending channel, breakout traders look for two key signals: a support formation above the channel line followed by a high volume breakout to the upside. Over the course of this descending channel, you can see BTC/USD’s volume profile drop consistently as bulls and bears get exhausted.
What is a Fakeout in cryptocurrency?
Coincidentally enough, the chart above also shows a fakeout, which you can think of as a fake breakout that isn’t supported by high trading volume. After touching the channel line multiple times, BTC briefly fell through the support zone around February 23. Over the next few hours, the channel line actually became a temporary resistance.