Trading Strategies and Useful tools for Technical Analysis in the Crypto Space
Reverse Strategy
The reverse strategy is one of the most popular trading strategies used during technical analysis of any cryptocurrency asset. In cryptocurrency trading, there are a lot of different strategies that traders make use of so as to take advantage of the cryptocurrency market fluctuations to make more profit. For me, I really like the reverse strategy a lot but it also comes with pros and cons.
Reverse strategy is simply a trading strategy used during the technical analysis stage in order to take advantage of the price changes in the market. Using the reverse strategy, the trader would trade against the current trend of the cryptocurrency market, which can also be known as counter-trading because the cryptocurrency trader does the opposite from the normal trading actions. This means that during the technical analysis and the market is in a downtrend movement, the trader would put in buy order and buy the cryptocurrency asset. Also, if the market is in an uptrend direction, the cryptocurrency trader would place a sell order and sell the cryptocurrency asset and the trader would repeat the process using the strategy to take advantage of the market changes and trend movement so as to make more profit.
Let’s look at a real world example to explain how reverse strategy is used by a cryptocurrency trader. For example, A trader wants to trade NEO and is doing technical analysis on NEO to determine the situation of the market to known the best possible entry price. During the technical analysis, the trader sees that NEO is in a downtrend, the trader would try to enter the trade and buy NEO at the end of the downtrend so as to ride the next uptrend. As soon as NEO changes direction begins to move in an uptrend movement, the trader would try to sell NEO at the end of the uptrend movement. With this, the trader would buy NEO at the downtrend and sell NEO at the uptrend.
Coingecko
Coingecko website is one of the most popular tools in the cryptocurrency world. Because of its uses and features, it has become one of the go-to websites when it comes to live price charts and statistical analysis of cryptocurrency assets. For me, coingecko is my favorite tools for checking accurate price information and statistical data of any cryptocurrency asset. I make use of coingecko so much that it has become part of my everyday technical analysis tools.
Coingecko is simply a website for data aggregation and showing live prices and statistics of cryptocurrencies. On the coingecko website, anyone can find the current and live prices and statistics of cryptocurrencies. The coingecko website has been operating since 2014 and has gone on to become one of the favorites and very popular data aggregation tool with a reputation of accurate price information and statistics of cryptocurrencies on coingecko.
Coingecko also has a mobile application that makes is easy to find price information and statistics of various cryptocurrencies in a much convenient way. Aside from live price information and statistics of different cryptocurrencies, coingecko also has cool features that helps it stand out from the rest. One of the features is the currency converter which makes it easier for users to convert price value from one currency to another. I find this feature very helpful because I can quickly determine the estimate I need to have available so as to buy a particular cryptocurrency asset.
For example, I can make a conversion to know how many vechain VET I can get with $100 and at the current time, $100 would buy an estimate of 809 VET, this is great because I can decide to send within the range of $100 to an exchange to buy about that amount of VET. Very amazing feature. Also, Congecko makes use of what is called real-time data feeds to show price and statistics data and information of different cryptocurrencies. This is great and beneficial for cryptocurrency traders and investors so as to make the best decisions.
The coingecko website has a very clean and easy to navigate interface that makes it user friendly for anyone to use. On the front page of coingecko, there are different sections that makes it easy to access different features and aspects of the website. The navigation bar section at the top has all the links to every section on the website with each section categorized into their own group. The navigation bar is made up of different navigational group links comprising of Coins, Exchanges, DeFi, NFT, Portfolio, Publications, Resources, Products, Community. Each of the different elements directs to different sections of the website.
The info and data bar section shows live info and data of all cryptocurrencies on coingecko. The quick link bar section has the main links that can also be found on the main navigational bar. The quick link allows users to have a quick access main features of coingecko. The coin section shows the live prices and statistics of all cryptocurrencies on coingecko and are ranked according to marketcap.
