Update #72: Writing Expedition ✍️ Wednesdays: Crypto/technology

Hello friends,
It's a privilege to share my participation in the contest organized by @steemkidss on the topic that says Update #72: Writing Expedition ✍️ Wednesdays: Crypto/technology. Let's learn about something new today.

As a newbie in the cryptocurrency world and technology world, I have focused my attention on learning crypto trading and some of the things I have learned so far are what I would like to share with you all today. So let's go into details on this below.

Source

Learning crypto trading has to do with knowing when to enter a trade and when to exit the trade. So my focus here is to learn when to enter a trade and when the trade will be exited.

In my little research, I worked on the RSI indicator here in this indicator, you have two major points called the overbought and the oversold regions. The overbought region indicates that the movement of the market toward the upper direction is almost coming to an end whereas the oversold show that the movement downward is also coming to an end.

So for overbought, the RSI line must go above the 70 line which is the target point that shows that trade has reached its peak and that prepares you as a trader to exit the market because the trade will reverse any moment from that point.

For oversold, the RSI line must go below the 30 line which is the target point that shows that trade has reached its trough and that prepares you as a trader to exit the market because the trade will reverse any moment from that point.

So that is the exit criteria when using the RSI indicator for trading. Similarly, you also need to know when to enter the market. When you have spotted your exit point, you can also know your entry point by monitoring when the market will make a good movement from the reversal you can either buy or sell during that period depending on where the price is reversing to.

If for instance, the market is reversing from downward, you are supposed to know that you will need to long the market when the market reverses. You will wait for confirmation of either a bullish candle formation or a closure of any bullish candle indicating that the price has changed directions.

Similarly, if the market is reversing from upward, you are supposed to know that you will need to short the market when the market reverses. You will wait for confirmation of either a bearish candle formation or a closure of any bearish candle indicating that the price has changed directions.

I want to invite @adachukwu, @whizzbro4eva, and @steemqueeen to also join the contest in this community today.