Know the Cycle

Price in the market will be governed by Supply and Demand which of course will manifest as your support and resistance levels.

Now depending on which will be more dominant and how long will it take before it reverse to the other direction now creates your two major cycles, the uptrend vs the downtrend.

Well most would already heard about the Bull (price going up) vs the Bear (price going down) and if the trend is more Bullish then you would simply go for long position, and if the market is Bearish you will take the call to short your position.

This is mostly applied on forex but thanks to some crypto exchanges they have also adapted this method for clients to be able to go both ways to earn in the market and not just on the old way of buying and selling later a higher price.

One way to get the picture of the trend of the market is simply adding up a moving average indicator to your chart and set to a 200 period.

By the looks alone, once it starts to stay below your candles then would be your cue to start to buy in tranches to test the waters, and once it stays above the candles gives you already a warning sign that the sentiment of the market is about to change.

So aside from learning about your support and resistance you also need to make good grasp of the trend so that your chances of getting a position if it is Bullish or Bearish would maximize your profit before another reversal of trend takes place.

Happy Trading!