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What indicators should be considered when implementing a bearish put spread in the crypto market?

avatarJanani VeeramanikandanDec 27, 2021 · 3 years ago1 answers

When implementing a bearish put spread in the crypto market, what are the key indicators that should be taken into consideration? How can these indicators help in determining the optimal strategy for a bearish put spread?

What indicators should be considered when implementing a bearish put spread in the crypto market?

1 answers

  • avatarDec 27, 2021 · 3 years ago
    When implementing a bearish put spread in the crypto market, it can be helpful to analyze the historical price movements and patterns of the crypto asset. This can be done through technical analysis tools such as candlestick charts, moving averages, and trend lines. By identifying key support levels and potential resistance levels, traders can determine the optimal strike prices for the put options in the spread. Additionally, monitoring the volume and trading activity of the options contracts can provide insights into market sentiment and the effectiveness of the bearish put spread strategy.