Crypto Swing Trading Summary (C3): Entry Strategies

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Nailing your entry is somewhat of an art-form when swing trading crypto.

You must combine technical analysis, market mood, and your gut feeling to get in at just the right time in order to take advantage of significant price changes.

A consolidation period is when an asset has been bouncing between support and resistance levels in a somewhat narrow range.

The longer this consolidation phase, the stronger the final breakout will be.

One sign that the breakout is genuine is a rise in volume. During consolidation, volume is usually quite low. As the breakout begins, volume will increase dramatically.

In a strong rally (price increases) you will often see the price dip (a pull-back) as traders sell to take their profits.

These dips can be good times to enter if you think the bull trend will continue.

It is important to consider support and resistance levels. You can also look at the 50-day moving average and Fibonacci levels.

Timing is crucial for a successful entry.

One approach is to await confirmation. Instead of jumping in at the first buy signal you see, wait for the trend to continue. This makes your trade more likely to be positive, although you will miss out on those initial profits.

Another option is to split up your entry. For example, put in one third of your entry when you first notice the setup, then another third upon confirmation, and the last third as the trend continues.

Placing limit orders at crucial levels can help you get in at the right time.

For example, if you are waiting for a breakout, place the limit order just above the breakout point.

If you are trading the retreat, you can set the pullback order at support levels.

Often, not trading is the best thing to do.

It is more than acceptable to not trade if a setup doesn’t meet all your requirements.

There will be no shortage of opportunities in the cryptocurrency markets.

Never enter a trade on just one signal.

It’s when numerous things align that you will get the most positive results.

Look for several buy signals combined with positive fundamental analysis principles.

At times you will encounter FOMO (Fear Of Missing Out).

Do not succumb to it.

Always follow your risk management plan. Do not give in to greed or fear.

Creating a sound risk management plan and sticking to it is what will keep you trading for the long run.

The market is continuously evolving.

In order to stay in the game, you must adapt your strategies to match the market.

During a strong bull market, there will naturally be more breakouts.

In a bear market, it will be safer to range trade.

Keeping a trade journal will help you hone your skills. Over time you will see what setups and entries work best for you. Concentrate on them to make the most profit.

Read the next chapter here.

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