How To Place A Trade?
When trading on Crypto Code you should know how to select and take a trade. There are many ways in which this is done. Each trader will have his own preferences and methods about how to take a trade. You should, however, have your own trade plan and stick to it to make trades.
Technical analysis to take trades
Technical analysis is a study that is used by technical traders to spot trading opportunities in the market. They use candlestick charts to analyze and take trades. They also use several indicators to take a trading decision. The technical analysts believe that history repeats itself and thus look at similar trade setups as in the past to take trades.
The step by step method to take trades
First, you need to make a list of stocks that you wish to trade on. These are the stocks on your radar. You should have them on your watch window.
Once you have the list of stocks that you wish to trade you will then have to analyze what kind of a trader you want to be. If you want to take quick entry and exits in the market then you are an intraday trader. If you want to hold on to the positions for long then you are a swing trader. If you want to invest in a company and hold on to the stocks for many years then you are a positional trader. Based on what kind of trader you are you decide on the time frames of the chart that you should be trading on.
Timeframes and trades
Suppose you are a swing trader. Then you will be looking at the weekly, daily and the 60 minutes chart. The weekly char will let you judge the next level where the price could face a resistance. This is the next support or the next demand level in case the price is moving up or down respectively.
You then check the daily chart. Here you analyze the trend of the stock. Make sure that there is still some room for the stock to reach the next resistance level. You then look for levels based on what the trend on the daily chart is.
The 60-minute chart is used to fine-tune your trades. The demand or the supply level that you get on the daily chart can be narrowed down here for better risk management.