In the previous part I talked about the theoretical aspects of crypto trading and in this part, I will be talking about the technical stuff that needs to be considered while trading and the things that are very very basic but trader forget to implement that. Building up a strong base is a very important thing, it helps you to know about your trade deeply and manage risks. Each and every successful trader has its own way to analyze a chart and which makes it different that others that is why if you give same amount of money to two successful traders, the end results will be different. Don’t follow any trader or strategy, learn the basics and derive your own concepts; only then you can become a successful trader. 

There are some technically descriptive stuff that a trader should keep in its mind while trading.

Chart Patterns

Why chart patterns even exists? Chart patterns are formed when repeated and almost similar trades happens over a period of time. So most of the times chart follows patterns and you need to learn a lot about them. There are technically hundreds of predefined chart patterns but only about 20-25 patterns is all you need to know. Also it is not always possible that if a chart is following a chart pattern then it is going to move with your exceptions. You also need to consider other factors such as volume, buying/selling pressure, outcome of other tools.

Analysis Tools

There are several chart analysis tools freely available that you can check on http://www.tradingview.com  and get an overview. Analysis tools are a great way to gain more confidence over your trades. These tools may vary in their ease of use based on how intensive we are analysing a chart. SMA or Simple Moving Average and EMA or Moving Average Exponential are one of the simplest chart analysing tool that helps a trader to find an overall trend. Other most popular tools are RSI, Bollinger bands, MACD indicators and more. These tools are just one way to analyse charts and we shouldn’t trade solely based on it. These tools can become much more powerful when combined e.g RSI + SMA + EMA + Volume indicator. It can provide us more accurate results. 

Targets

If you are going in a trade without setting your targets then you are definitely going in the wrong direction. Before you make a trade it is very important to set your buying and selling targets. If you are trading and you haven’t started doing that then you cannot become a successful trader for the long term. The biggest problem associated with not setting targets is you may profit from a trade but you could have done a far better trade if you would have set the targets. It also helps to set your stop loss so that you might go in a loss but not too much. This is also called Risk Management, another important aspect of trading. 

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