Book Image

Zero to Hero in Cryptocurrency Trading

By : Bogdan Vaida
Book Image

Zero to Hero in Cryptocurrency Trading

By: Bogdan Vaida

Overview of this book

In today's fast-paced digital age, cryptocurrencies have emerged as a revolutionary financial asset class, capturing the attention of investors and traders worldwide. However, navigating the world of cryptocurrency trading can be overwhelming for beginners. Zero to Hero in Cryptocurrency Trading acts as a guiding light to navigate this complex realm. This comprehensive guide to cryptocurrency trading empowers you to go from a novice trader to a proficient investor by helping you implement your own trading strategy. As you progress, you’ll gain structured trading knowledge through hands-on examples and real-time scenarios, bolstered by trading psychology and money management techniques. You’ll be able to automate your manual trades with an algorithm that works even while you sleep. You’ll also benefit from interactive teaching methods, including screenshots, charts, and drawings to help decode market operations and craft your unique edge in the dynamic crypto world. As an added bonus, you’ll receive ready-to-use templates to identify useful indicators, test your strategy, and even maintain a trading journal. By the end of this book, you’ll be well-equipped to trade cryptocurrencies and automate manual trading to give you an edge in the markets.
Table of Contents (13 chapters)
9
Chapter 9: What’s Next?

Trend indicators - moving averages

The moving average (MA) calculates the average price of a token over a period of time.

Let’s say we have three candles: C1’s closing price is 2, C2’s is 4, and C3’s is 6.

The MA3 (MA calculated over the last three candles) is calculated as (C1+C2+C3)/3 = 12/3 = 4.

Now C4 is being formed. The timeframe is four hours and we’re only 30 minutes in, so for now, C4’s price is 8.

MA3 is now (C2+C3+C4)/3 = (4+6+8)/3 = 6.

On a chart, we’d draw a line from C3’s MA3 4 value (where our MA3 starts) to C4’s MA3 6 value, forming a line. That line would continue as each new candle is formed. Note that we can’t calculate MA3 for the first two candles because we need three candles to get that information (MA3). Here’s what it looks like:

Figure 4.1 – Moving average (MA3)

Figure 4.1 – Moving average (MA3)

Every YouTuber and his cousin are talking about specific moving averages...