Most investors who are keen on cryptocurrencies try to take positions according to the opinions of technical analysis experts because they are not knowledgeable in technical analysis. Sometimes it causes the right investment and sometimes the wrong investment.
So what do we need to do to make minimum mistakes… ?
What we need to do is to confirm the accuracy of what technical analysts say. It is simply necessary to know the patterns of technical analysis. I'm going to tell you how to simply read a price chart without being a technical analyst...
In this article, I'm going to talk about a number of technical analysis formats...
Fear not, there are no technical terms, it will be in the way a casual investor will understand...
If you're ready, let's start …
Our third technical analysis pattern; Supernova Pattern …
Supernova Pattern is one of the favorite patterns in the cheap crypto markets.
You ask why ... ?
Because cheap cryptocurrencies do not need a lot of purchases to see incredible rises. Such moves are rare in larger cryptocurrencies.
Supernova Pattern occurs between 1 week - 1 month. It depends on the hype.
**Supernova Pattern **usually occurs when a cryptocurrency is hyped. You can come across examples of this on Social Media and news. The reason for this hype is sometimes something important and sometimes nothing.
Investors then pile on the under-traded cryptocurrency. This is enough to push the price of the cryptocurrency higher. However, most of these cryptocurrencies are blank, so they are hyped.
As investors begin to understand this, they lose their excitement and want to exit the cryptocurrency. So they go on sale and cause a rapid price drop.
Investors who can detect Supernova Pattern early can achieve a rapid price increase, but one should not be too greedy. Be prepared to exit your position while the price is rising.
My last words; There will be dozens of cheap cryptocurrencies that will Supernova Pattern in the upcoming bull rally. You should get out of the price you see fit without dreaming of getting rich. Otherwise, you may be left with the cryptocurrency.
You can't buy any cryptocurrency at the bottom and sell it at the top...
I hope now, after reading my article, you have learned about Supernova Pattern.
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Posted Using LeoFinance Beta
I think the beauty of this is the identification and knowing when to get out of the trade. One could get caught up in between if he's not smart enough to exit on time.
Posted Using LeoFinance Beta