bitcoins. StockSharp

Principles for trading cryptocurrencies part 4

2020-09-22T13:21:42Z

In today’s article we will review the significant part of trading analysis – trading volume.[happy]

Let’s explain what trading volume is – the whole amount of cryptocurrency units which trade on crypto exchanges that are traded on base of executed orders within considered period. Obtaining this volume is important that’s why there’re many charts of trading volume. For example the program software for downloading market data S#.Data(Hydra) easily can build trading charts and trading volume charts, giving the trader to see and compare them in one work space flow. Definitely it will give you a wide picture for further analysis. [wink]

For the analysis itself it’s crucial to know the volume indicator that occurs by reaching some fixed price level. Given information is a signal to start a trade or the opposite – to wait. Volume chart can be vertical or horizontal, however the first one is more used by traders, [nerd] By building the graphs based on download market data in Hydra it has the same time period as for candlestick chart and displays in the form of bars.

In short words, if a trader builds a graph by trading volumes over the past 30 minutes then the bar value will indicate the whole cumulative volume of 30 minutes.[ninja] By fact, one of the options using charts is to find the end of correction movement in a trend. Thus, if the volume increased dramatically by the price which the direction is opposite to the trend therefore it might indicate the end of the trade itself. This moment might be benefits for trade in the direction of a trend and often used for trading robots, particularly in a constructor of trading robots - S#.Designer. [love] Also, you should keep in mind that a big trading volume of cryptocurrency not always indicates for beneficial price movement the cause of might be set aggressive orders. In any case, if a trader gets an opportunity to use such financial instruments for analysis it will lead to reducing risk and gaining profits!

Potential risk of cryptocurrency market!

2020-08-25T12:34:08Z

Nowadays many experts concluded that cryptocurrency market is a financial bubble and its capitalization is blurred and unconfirmed.

However, in the light of growing algo traders and popularization of cryptocurrency, also as a form of cashless payment, might question the expert’s opinion about market decline. [laugh]

In any case, an algo-trader must consider all risks related to market fall.[smart] And with a help of trading software which can consolidate trading data and base on this data to build all necessary indicators. S#.Data(Hydra) is a great solution for managing market risk analysis. Hydra allows you to collect all market data and trade related data where a trader will be able to analyse market trends and make a right decision particularly any financial asset.

The forecasts of cryptocurrency market and crypto-trading are different of their development measure. So, the value of cryptocurrency market is estimated in hundreds of millions of dollars and its capitalization continues to grow. Therefore, crypto-trading becoming popular form of trading and in many cases more accessible to trade.

Traders have no fear of recent China announcement about regulation of blockchain industry, where some standards will be involved and function in China.

Let’s highlight the most common risks of cryptotrading:

***- A myriad of different crypto tokens and therefore you will face a challenge and confuse to pick up a right one to trade

The lack of proper regulation what lead to fraud in the market

The lack of information of crypto capitalization of market cap it is under question

A right choice of your strategy and trading software***

However, it should be said that these cons also have some pros for traders, for instance a big choice of trading securities and access to it, ability to enter any market because of large number of platforms, multiple trading solutions and trading systems![happy]

The StockSharp company gives you a full list of everything you need for successful trading with minimal risk. You can buy our connectors to connect the most popular and famous cryptocurrency exchanges as well as program software which able to analyse the market condition and trends to make a right decision without any loss. More information about our products you can find on our website.