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It is unwise to put - as they say - all your eggs in one basket, so trading different instruments is always a good idea for risk management.
It also stays true when trading cryptocurrencies; you can’t just keep trading Bitcoin or Ether forever if you want to make the most out of cryptocurrencies.
With that philosophy in mind, I’ll present you an opportunity to do just that by adding Dash to your crypto trading portfolio.
What Makes Dash Unique?
Dash is one of the most popular private cryptocurrencies. The coin is also seen lately as one of the most stable cryptocurrencies, so long-term investors can see a good opportunity to take a position, but shorter-termed traders need to polish their indicators and pattern spotting skills.
This stability is due to a wider-spread adoption by many members of the crypto community, thanks to how private and practical Dash is.
How To Trade Dash
As we said, stability tends to mean a lot of sideways trends, and this means we need to use good indicators and Price Action techniques to identify the brief swings as soon as they start.
For example, take a look at this chart:
Before we go into specific trade examples on that 4-hour graph, let me point out a few things.
First, you can notice that a combination of an EMA and an SMA is plotted on the above chart. This is because both indicators let us analyze market trends, but since the EMA takes more recent moves into account, it makes an excellent tool for spotting when trends start reversing.
As you can see, in four different instances, the EMA broke my SMA, and all four ended up being reversals. They work as a “simpler” MACD.
Lastly, the Parabolic SAR is a great companion to these due to how it helps to confirm the signals provided by them. Also for more advanced and professional trading, it's always great to use trendlines, supports and resistances and Price Action patterns, but to keep things simple, we'll stick to using moving averages and Parabolic SAR for the purposes of these examples.
Now, let’s get into the trade examples which are actual positions that I took:
Breaking down the trades:
These were some specific examples of how we can trade Dash.
As you probably know, I prefer to trade with strategies and techniques that are universal and can be usually traded (with some minor modification) on all instruments - these techniques that prove to bring profitable results for a long time and on a lot of instruments are usually my gold mines!
