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RE: Trading Cryptocurrencies with solid strategy

in #trading7 years ago

Hey technical analysis works in the same way across any time frames, patterns behave the same on any time frame, it is up to trader to choose what he wants to trade, this will depend on many factors.
1.how much time trough day to do you have to spend on following patterns?
2.how much % per month gain do you want to make?
3.how big is your account?
Those are questions that will define which time frame is for you, if you want huge % gains, you dont have any other choice but to pick low time frames, M1, M5, otherwise youll be forced to overscale position size which is absolutely a no-no.
If you have little time and look only for 5% monthly gain then high time frames like H1, H4 or above are totally fine, it will give you more time to think on entry, and decrease chances to miss the pattern if you are not around charts on that exact moment.

I personally trade all time frames, but majority of FX and stock trades come from M1 and M15 charts. On Cryptos majority of trades come from H1 charts, becouse liquidity is lower and spreads are higher. But this will soon change in cryptos as liquidity is expanding every day.

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