Performing the top-down analysis encourages trading with strategy “the trend is your friend”, cause there is a higher probability to continue on the longer trend. In order to consistently make money in the markets, traders need to learn how to identify a larger trend and trade around it accordingly. A simple rule is that the bigger time frame, to define the primary trend and a faster time frame to define the short-term trend. Click multiple time frames on the platform Digiasset Exchange like below for optimized view.
A swing trader will look to the daily chart for the overall trend may be using a trendline and then zoom in to the four-hour chart to spot entries. For example, if the larger trend is to the upside, so a trader has to wait until a chance to buy/long. Another skill with multiple time frames for analyzing trades is the ability to identify support and resistance readings as well as strong entry and exit levels.
Keep control of money management, before risking your transaction. Successfully analyzing the crypto market especially combine with multi-timeframes needs more training. It needs a confidence mentality in every transaction while in a short term timeframe that is volatile.
Open a Crypto Trading Account Under 5 Minutes
Open a trading account for your crypto asset in Digiasset. Products traded include Bitcoin (BTC), Ethereum (ETH), Doge, Tether (USDT), Binance Coin (BNB), TRX, JUST and more assets another crypto that is in the top 500 on Coinmarketcap.