Many times it’s been told that Trend is your friend. It’s a simple and powerful trend trading strategy and following it can lead to offer big gains. Moving averages are used to spot trends. Beginner traders should stick to trend trading strategies. That means, find an uptrend, and ride it for potentially big gains and the trend can be identified by using moving averages. Moving averages are used to spot trends.  Simply put, if a moving average is upward sloping, the trend is up and if it sloping down the trend is down.

Rules to be followed

• Buy when shorter Moving average crosses above longer Moving averages. In the above chart, Buy signal was generated when SMA (20) crossed above SMA (50).
• Sell when shorter Moving average crosses below longer Moving Averages.

This is another simple trend following strategy but it’s very useful. Pullbacks can often provide opportunities to jump on an established trend. It’s difficult to catch a trend in early phases and conservative traders prefer to jump in midstream, once a trend is established. Even in an Uptrend, prices never go straight up, day after day. There are times when price consolidates, pulls back, and then resumes an Uptrend. These corrections are opportunities to join a trend. And this applies to Downtrends as well, for those who like to Short Sell.

Ideally, during a pullback, price touches and bounces off a support level.  This is potentially a good entry point.  Some traders prefer to wait for price to surpass prior high, as an indication that Uptrend will continue.

Rules to be followed

• Find the crypto currencies in an Uptrendbut have had atleast 5%+ pullback (a correction, consolidation)
• Identify a Support Zone. This is often prior Resistance Zone or prior high point.
• Selling volume dries up during the pullback.
• Buy if the price is near or touches a Support Zone.

Chart patterns appear when traders are buying and selling at certain levels, and therefore, price oscillates between these levels, creating chart patterns.  When price finally does break out of the price pattern, it can represent a significant change in sentiment. Patterns that emerge over a longer period of time generally are more reliable, with larger moves resulting once price breaks out of the pattern.

• Ascending/Descending Triangle
• Head and Shoulders, Inverse Head and Shoulders
• Channel Up/Down
• Falling/Rising Wedge
• Double Bottom/Top
• Triple Bottom/Top

Therefore, a chart pattern that develops on a daily chart is expected to result in a larger move than the same pattern observed on an intraday chart, such as a 1 Min, 15 min, 1h, 4h, 1d chart.