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Trading cryptocurrency involves buying certain cryptocurrency assets when the price is expected to increase (that is, when it’s low) and selling it off at point the price is expected to fall (when it’s high). This technique of cryptocurrency trading involves analysing price movements through the use of indicators, looking out for signals for next price trends. Common indicators used in technical analysis of cryptocurrency price include trendlines, channels, moving average and momentum indicators. It’s noteworthy to know that, the decision of traders based on technical analysis of price charts is subjective rather than objective. So, trader’s decision in the market is more based on their experience with the price chart and the asset being traded. The intrinsic skills in trading cryptocurrency or any asset is in identifying the supports and resistance levels which are basic signals that traders look out for in making decisions whether to buy or sell an asset.
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