The power of the feeling of market in cryptocurrency trading **

As the first decentralized digital currency in the world, Bitcoin has prepared the stage for a new era on the financial markets. With its volatility and unpredictability, the trade in cryptocurrencies can be a high risk of high reward. One of the many tools that are available is the analysis of market feelings, the valuable insights into the trust of investors, emotions and expectations. In this article we will examine how the market mood is used for successful trading in cryptocurrencies.

** What is the feeling of the market?

The market feeling refers to the collective opinion of investors in terms of a certain asset or market trend. This is an essential factor for understanding market behavior and deciding on well -founded investment decisions. The feelings can be positive, negative or neutral and influence the price movements based on various factors such as economic indicators, news events and investor emotions.

Types of market mood

There are different types of market mood analyzes:

• Emotion -based mood: This type of mood measures the emotional state of investors, which can either be positive (e.g. excitement about a new start) or negative (e.g. they fear an upcoming announcement).

• Cyclical mood: This type of mood examines the repeat patterns in market trends in terms of time, the consideration of historical data and investor behavior.

• Economic indicator-based mood: This type of mood analyzes economic indicators such as GDP growth, the inflation rates and the number of employment in order to measure the market mood.

How to use market feelings for a successful trade

To use the market mood effectively, follow the thesis steps:

• Understand the markets in which you act in: Family yourself with the specific cryptocurrency or the asset with which you want to act.

• Select a reliable data source: Use serious sources such as CoinmarketCap, Cryptoslate or Coindsk to collect market data and mood indicators.

• Select relevant indicators: Use tools for the analysis of sentiment that give insights into the trust and emotes in investors, such as: B.:

* Short-term trend (5-10 days)

* Relative strength index (RSI) and in the equilibrium volume (OBV)

* Moving average values ​​(Mon) and Bollinger tapes

* News feeling analysis (NSA)

• Analyze historical data: study previous market trends, mood levels and price movements to identify patterns and correlations.

• Identify the most important sentiment indicators

  : Find for certain signals that indicate a shift in the feeling, such a axis:

* Increased trading volume

* Rising or falling prices

* Announcements that affect cryptocurrency

• Adjust your strategy

  

  : Adjust your trade approach to use the advantages or favorable market conditions.

Best practice for the analysis of the market feelings

Maximizing the effectiveness of the market mood in cryptocurrency trade:

• Stay up to date with news and events: monitor the economic indicators, regulatory updates and other relevant information continuously that can affect the mood of investors.

• Disorses your analysis: Use several data sources to get a more comprehensive understanding or market trends and mood levels.

• Set Realistic expectations: Understand that the market mood is not a guarantee of future price movements and is prepared for unexpected events.

• Monitor your emotions: Pay attention to your own emotional condition and avoid making impulses that are based solely on emotions.

Diploma

The analysis of the feelings of the market sacrifices a powerful instrument for trading cryptocurrencies, so that you can remain the curve ahead and be informed in investment decisions. If you understand how you can use the market feelings effectively, you can increase your successful tips in this market for high operations.