What are the key indicators to consider when implementing momentum-based trading in the world of cryptocurrency?

1 answers

• Dec 28, 2021 · 3 years ago
  When it comes to momentum-based trading in the world of cryptocurrency, one key indicator to consider is the Moving Average (MA). MA helps smooth out price data and identify trends. By using different time periods for MA, traders can spot short-term or long-term trends. Another important indicator is the Average Directional Index (ADX), which measures the strength of a trend. By combining these indicators with other technical analysis tools, traders can identify potential entry and exit points for profitable trades. It's important to note that implementing momentum-based trading requires continuous monitoring of these indicators and adapting strategies accordingly to market conditions.
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