How to Predict the Correct Movement of Crypto Assets With Candlestick Analysis

Getting successful in Cryptocurrency trading, requires you to predict the movement of assets in a more accurate manner so that your chance of losing your entire investment is minimized. Knowing how to use and to read them is the key factor to earn a lot of money through Cryptocurrency by making the most accurate prediction about the movement of an asset.

There are usually two basic strategies that you should follow so that your calculation is accurate and the system works at its best as well. With the help of such useful strategies now you can rest assured that you will not have to lose your entire amount invested as was the case with Cryptocurrency trading before.

Shooting Star Strategy

Shooting star strategy is the first and most followed strategy as it can be used for various applications. Apart from its useful contribution in Cryptocurrency trading it can also help you in traditional stock or forex trading as well, though it is mostly favored and opted for Cryptocurrency trading.

This is a strategy immaculately and accurately designed to provide better predictions of asset movements and opportunities to earn money using Candlestick Cryptocurrency Trading which is effectively used to predict the decreasing value of an asset in the short term. The signs that you should look for while you use this specific strategy to predict the future price of any asset includes very short red or green body along with a very large lower shadow as significant signals.

The Working Process 

The red body will mean small decrease and a very small green body will imply a drastic lower increase. The real body will have a no or very small upper shadow but will have a considerably long lower shadow. This will mean that almost all or a very large number of traders have decided to sell off the asset in question.

This will lead to a situation where the price of the asset will keep on decreasing for the next thirty minutes to one hour. In such a situation you should buy a contract for Cryptocurrency and invest a lot of money on the outcome of the value of the asset stating that it will continue to decrease for the next ten to thirty minutes.    

Hanging Man Strategy

Just the opposite of shooting star strategy the hanging man strategy in Cryptocurrency trading is used to predict any sudden rise in the price of a particular asset. This strategy has much lower rate of success as compared to shooting star strategy and therefore if you are a newbie and want to make money then you should stick to the shooting star strategy only.

When you see a long upper shadow, you may predict an increase in the price movement. This ill meant a large number of traders would buy this asset which will result in the increase in the price. Again, you can invest a lot of money predicting that the value will increase for the next five to thirty minutes.

Point of Concern

The only point of concern is that the Cryptocurrency broker should have appropriate charting tools to display the candlesticks and therefore you should always sign up with a top-rated broker such as RoyalCBank. Apart from that you should remember the designs of the candlesticks, practice a few rounds with a demo account so that you get the feel of it first before you fully indulge in it.