How To Identify Continuation Patterns In Price Action

Understanding the action of the cryptocurrency price and identification of continuation models

The world of cryptocurrency trade can be overwhelming, especially for new ones to the game. With the rapid growth of the market, it is essential to remain informed and quickly adapt to changing trends. A crucial aspect of successful trading is to identify the continuation models in the price action. In this article, we will deepen the basics of the policy prices of cryptocurrency, how to identify continuation models and provide strategies that can be implemented for traders.

What is the action of the price?

The action of prices refers to the visual representation of the price movement of a cryptocurrency on the graph. It includes various technical indicators that provide insights on feeling and on the moment of the market. Analyzing these indicators, traders can obtain a deeper understanding of market dynamics and make more informed decisions.

How to identify the continuation models in the price action

The continuation models are repeated prices of prices within a specific interval or band. To identify them, it is necessary to observe the action of the price over time, looking for repetitive models that suggest a trend continuation. Here are some key features of the continuation models:

• Repeat : The model is repeated, with the same movement of the prices that occurs at regular intervals.

• Direction

  : the direction of the motif is coherent, with the prices that move in one direction or another.

• Range : The model includes a specific range or a price band that are exchanged inside.

Types of continuation models

There are different types of continuation models of which traders must be aware:

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• Triangoli : a formation in which the prices move in a specific direction, therefore reverses and continue to move in the same direction.

• Relicist deception models : a scheme in which a lower maximum is swallowed up by a higher minimum, indicating a potential reversal.

• Related deception models : a scheme in which a higher maximum is swallowed up by a lower maximum, indicating potential inversion.

Identification of continuation models in the action of the cryptocurrency price

To identify continuation models in the action of cryptocurrency prices, it is necessary to analyze the following:

• Analysis of the graphic models : study the graph and look for repeated models, such as waves or triangles.

• Analysis of the period of time : analyze the graph on different times (e.g. 4 hours, 1 day, 1 week) to identify the models that persist through different periods of time.

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Strategies for the continuation models of trading

Once a continuation model is identified, here are some strategies that can be used to use:

• Buy or sells

  : Based on the model, decide whether to buy or sell to the turning point.

• following trend : use continuation models as a base for the trend following strategies, as long or short positions.

• Breakout trading : look for opportunities to get out of consolidated models and capitalize on the momentum.

Conclusion

Identifying continuation models in the policy prices of cryptocurrency is crucial to make informed trading decisions. By understanding the foundations of the technical analysis and analyzing the graphic model, the time frame and the integration of the indicators, operators can identify repetition models that suggest a continuation of the trends. Remember to remain flexible and adapt your strategies when market conditions change. With the practice and experience, you will become safer in identifying continuation models and making better commercial decisions.

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