Cryptocurrency price action strategies for stellar trading (XLM)
The world of cryptocurrency trade is constantly evolving, with new coins and tokens that emerge continuously. Among these, Stellar (XLM) has gained significant traction in recent years due to its innovative platform for cross -border payments and its strong fundamental. However, as every trader knows, price action strategies can be a powerful tool to identify potential purchase and sale opportunities.
In this article, we will explore some of the most effective price action strategies for Stellar trading (XLM), highlighting key models, indicators and techniques to help traders to make informed decisions.
Understanding of the price action
Before immersing yourself in specific strategies, it is essential to understand what the action of prices deals with. The action of prices refers to the visual representation of market data on a graphic designer, which includes the price of an activity, as well as various other factors such as volume, trading hours and support and resistance levels.
The price traders are looking for models, trends and anomalies in these data to make forecasts on future price movements. These models can be technical (based on graphs) or market based (which reflect the overall economic conditions).
Common price action strategies
Here are some of the most effective price action strategies for stellar trading (XLM):
1
A popular strategy is to use the tendency following indicators such as the Fibonacci retracing levels to identify potential purchase and sale opportunities.
- Use the stochastic oscillator or RSI to confirm the trends.
- Identify the key levels of Fibonacci, such as 23.6%, 38.2%and 50%.
- Track these levels on a graphic and look for signs of purchase or sale near them.
2.
Range trading with graphic motifs
Another effective strategy is the flow trading, which involves the identification of support, resistance and negotiation areas within these intervals.
- Search graphic motifs such as triangles, wedges or head formations and shoulders.
- Identify key levels, such as upper Bollinger bands or lower Keltner channels.
- Set the stop losses and shooting near these levels to block profits.
3
The ICHIMOKU cloud is a technical indicator that provides insights on the feeling of the market, the trends and levels of support and resistance.
- Identify the crossover of motorcycle indicators such as the stochastic oscillator or RSI.
- Search for medium reversal areas, such as retracing or unlocking.
- Set the stop losses and the profits near the key levels to profit from the average reversal signals.
4.
Breakout trading with volume
The volume is another critical factor in the trading of price shares. Breakout traders are looking for significant volume increases when a trend comes out of its range.
- Use models of graphics such as triangles or wedges as indicators.
- Identify the key areas of the volume, such as higher or lower books.
- Set the stop losses and shooting near these areas to block profits.
5.
Models of candelabra with momentum
The models of candelabra are a visual representation of the price action, used by traders to identify potential purchase and sale opportunities.
- Search for reasons such as hammer or stars formations.
- Identify the key levels of the moment, such as the mobile average at 50 periods or the average point of an interval.
- Set the stop losses and shooting near these levels to block profits.
Example of commercial configuration
Suppose you are stellar trading (XLM) with a specific price action strategy. Here is an example configuration:
| Time | Price | Directorate |
| — | — | — |
| 9:00 East | $ 60.50 | Buy |
| 10:30 East | $ 61.20 | Sell you |
In this example, the trader sets a purchase signal at $ 60.50 and a sales signal at $ 61.
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