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The world of cryptocurrency stores has exploded in recent years, and new investors are entering the market daily. However, navigation in the complex landscape of digital currency can be huge even the most experienced merchants. In this article we will enter three basic tools that will help you unlock the secret cryptographic trade: cryptography, the relative force index (RSI) and trade indicators.

What is cryptography?

Crypto currency, also briefly known as a curine of currency or cryptography, refers to digital or virtual currencies used by cryptography for safety and decentralize, which means that they are not controlled by any government or financial institution. Examples of popular currencies are Bitcoin, Ethereum and Litecoin.

Relative strength index (RSI): Main Trade Indicator

The relative strength index (RSI) is a technical analysis tool used to measure the power of active price. RSI developed by J. Weller Wilder in the 1970s, RSI provides a simple but strong way to recognize exaggerated and sold conditions that can help traders make deliberate trade decisions.

Here’s how RSI works:

• RSI is calculated as the number of periods of normal period periods.

• 0-30 Reading indicates a strong up or fall, while reading above 70 is considered exaggerated and rejected.

• Reading is considered to have been sold under 30 to a potential purchase signal.

Trade indicators: Change of games in a cryptographic trade

Trade indicators are mathematical models used to predict prices. In the context of trading cryptocurrencies, some popular trade indicators are:

* Bollinger Strip (BB):

John Bollinger, developed in 1990, BB is a technical indicator characterized by a variable average with two standard deviations above and below. When prices move outside these strips, it often indicates excessive or sold conditions.

* Storytelling:

This indicator developed a CCI (complex interest chart) measures the price ratio of price and volatility. Provides purchase and sales signals when the oscillator is above 70 and below 30.

* Variable average (ma): Simple Ma calculates the range of average prices in a particular period. This can help the merchants determine the trends, support and levels of resistance and anticipate future prices movement.

LP: With a show bound

A drawn trade or LP risk management strategy that includes the use of borrowed funds to increase the benefits of potential investment. In Crypto Trading, LP allows dealers to trade in larger capital, at the same time more effective management of their risks.

Here’s how LP works:

• Application: Investors use borrowed money from brokers to increase their position.

• Calls: If the position moves towards the merchant, they may need to repay the borrowed funds that can cause significant losses if they are not managed properly.

• Risk management: LP allows retailers to reduce the risk limiting their condition and managing their attracted means.

Conclusion

In conclusion, it should be understood that successful trafficking in the cryptocurrency is an important understanding of cryptography, the relative force index (RSI) and trade indicators. By grabbing the concepts of these tools, traders can gain a valuable insight into the market dynamics and make informed decisions. In addition, the LP attracts the risk management strategy that enables merchants to maximize their potential benefits with loss reduction.

Recommended to read

Further reading on cryptography, RSI and trade indicators:

• John J. “Technical Analysis of Financial Markets”