What are the key indicators to look for when using the 123 pattern trading strategy in the cryptocurrency industry?

3 answers

• Dec 14, 2021 · 3 years ago
  One key indicator to look for when using the 123 pattern trading strategy in the cryptocurrency industry is the volume. High volume during the formation of the pattern can indicate strong buying or selling pressure, which can validate the pattern and increase the likelihood of a successful trade. Additionally, traders should also consider the timeframe in which the pattern is forming. Patterns that form on higher timeframes tend to be more reliable and have a higher probability of success. Other indicators to consider include support and resistance levels, trend lines, and moving averages. By analyzing these indicators in conjunction with the 123 pattern, traders can make more informed trading decisions.
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• Dec 14, 2021 · 3 years ago
  When using the 123 pattern trading strategy in the cryptocurrency industry, it is important to pay attention to the trend. The pattern itself is a reversal pattern, so it is crucial to identify the prevailing trend before considering a trade. If the pattern forms during an uptrend, it can signal a potential trend reversal to the downside. On the other hand, if the pattern forms during a downtrend, it can indicate a potential trend reversal to the upside. Traders should also consider the overall market conditions and sentiment, as these factors can influence the success of the pattern trading strategy. It is recommended to use the 123 pattern in conjunction with other technical analysis tools to increase the accuracy of trading signals.
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• Dec 14, 2021 · 3 years ago
  When using the 123 pattern trading strategy in the cryptocurrency industry, it is important to look for confirmation from other indicators and tools. While the 123 pattern can be a powerful trading strategy, it should not be used in isolation. Traders should consider using additional indicators such as moving averages, oscillators, and volume analysis to confirm the validity of the pattern. Additionally, it can be helpful to use candlestick patterns and chart patterns to further support the trading decision. By combining multiple indicators and tools, traders can increase the probability of successful trades. At BYDFi, we recommend using the 123 pattern trading strategy as part of a comprehensive trading plan that incorporates various technical analysis techniques.
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