FlendCryptoClubFAIR VALUE GAP (FVG) IN TRADING: what It Means and How to Use It
Introduction If you’ve been trading crypto or scrolling through trading socials, you may have come across the term Fair Value Gap (FVG). Understanding FVGs can help you spot potential reversal points, identify good trade entries, and predict future market trends. In this guide, we’ll understand:What a Fair Value Gap is.How it forms and how to identify it on charts.What happens after an FVG shows up.Simple ways to trade bullish and bearish FVGs.The risks of trading fair value gaps.1. What is a...
FlendCryptoClubA guide to using Trendline in Trading
Welcome to this week's article ‘TRENDLINES’. Our topic this week is very important such that without it, TA(technical analysis) is incomplete. Once you are able to draw and analyze a valid Trendline, profitability is not far from you. This article targets mainly new users who don't know about trends. The topic will be explained in detail. It will explain the following;What is a Trendline?Types of TrendlineHow to trade the TrendlineWhy are they neededWhat is a Trendline?It is a line ...
FlendCryptoClubMargin: Cross Vs Isolated
What is margin trading? Margin trading is a fundamental concept in leverage trading. This is a method of trading where you can borrow funds from your broker or exchange to trade a larger position than your capital would allow you to. You use borrowed funds(leverage) to increase your buying or selling power. With this borrowed power, a good trade will give you exponential profits but what about bad trades? This is where these margin modes come into play. Exchanges use isolated and cross margin...
Connect with Web3 leaders. Learn, grow, and earn. Expert consultations, quality education, and real opportunities for the crypto community.
FlendCryptoClubFAIR VALUE GAP (FVG) IN TRADING: what It Means and How to Use It
Introduction If you’ve been trading crypto or scrolling through trading socials, you may have come across the term Fair Value Gap (FVG). Understanding FVGs can help you spot potential reversal points, identify good trade entries, and predict future market trends. In this guide, we’ll understand:What a Fair Value Gap is.How it forms and how to identify it on charts.What happens after an FVG shows up.Simple ways to trade bullish and bearish FVGs.The risks of trading fair value gaps.1. What is a...
FlendCryptoClubA guide to using Trendline in Trading
Welcome to this week's article ‘TRENDLINES’. Our topic this week is very important such that without it, TA(technical analysis) is incomplete. Once you are able to draw and analyze a valid Trendline, profitability is not far from you. This article targets mainly new users who don't know about trends. The topic will be explained in detail. It will explain the following;What is a Trendline?Types of TrendlineHow to trade the TrendlineWhy are they neededWhat is a Trendline?It is a line ...
FlendCryptoClubMargin: Cross Vs Isolated
What is margin trading? Margin trading is a fundamental concept in leverage trading. This is a method of trading where you can borrow funds from your broker or exchange to trade a larger position than your capital would allow you to. You use borrowed funds(leverage) to increase your buying or selling power. With this borrowed power, a good trade will give you exponential profits but what about bad trades? This is where these margin modes come into play. Exchanges use isolated and cross margin...
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Every trader picks their own lane. Swing traders (the patient dogs) wait for the fattest bones, big moves over days/weeks. Scalp/day traders (the fast movers) grab smaller chunks, back-to-back. At the end of the day, the difference boils down to time in the trade. How long do you usually leave your long/short positions open?
Scalp trading
Scalp trading is a strategy where traders aim to secure quick profits multiple times within a single day. Scalpers typically use very low timeframes such as 5 seconds, 1 minute, or 5 minutes to analyze trades. The volatility of crypto makes it possible to capture significant moves, like a coin gaining +4% in under 60 seconds. This style relies less on traditional technical analysis and more on real-time market data. High leverage is often a key component of scalping.
Analysis
Bollinger bands: breakout points are spotted on the Bollinger bands.
Order book is studied to understand timely order flow.
Moving Averages: this tool shows short-term trend movement on the chart and many more tools.
Perks of scalping
Quick profits: scalpers don't wait for days to close their positions, they profit from secondly fluctuations
Skill upgrade: scalp traders open tens to hundreds of positions daily. Their trading skill is honed in this process while sticking to a working strategy.
Less exposure: since it is executed in seconds and minutes, huge price fluctuations don't affect it much.
Scalping risks
First should be the amount of time you have to spend on the chart. It is quite demanding
Transaction fee multiplied by number of transactions can turn to a huge sum, reducing profits
Using high leverage is risky and can increase loss margin.
Swing trading
Swing trading differs from scalping, even though both aim to profit from price movements. A swing trader typically holds positions for more than 24 hours, seeking to capture larger price swings such as buying at support and selling at resistance, or selling high and buying back lower. Swing trades can last anywhere from 2 to 24 days, depending on market conditions and trading goals. This strategy combines both technical and fundamental analysis for effective decision-making.
Analysis
Candlestick patterns provide valuable insight into market direction.
Support and resistance levels are crucial for identifying entry and exit points.
Perks of swing trading
This type of trading is naturally less risky than scalping. The leverage is low and risk management techniques can be applied comfortably.
It does not require steady monitoring. Unlike a typical scalper spending hours on-screen, swing traders can do without the stress as they're in no hurry to cashout.
Also, the profit margin is often pleasing if the trade goes as planned.
It is easier to maintain a trade journal due to less trades
Swing trading risks
During high volatility, swing trading can cause mental cum emotional rollercoaster— can drive to wrong decision making.
As it is mostly voluminous, a loss hits hard.
Summary
Other trading styles like day trading and position trading also work in crypto.But for full-time crypto jobbers, scalping & swing trading are often the go-to. They bring higher reward potential but with higher risk too.
If you don’t have a trading journal yet, join the Flend community to learn how to build one and use it effectively to become a smarter, more profitable trader.
Kickstart your trading career here!
Register and get your welcome bonuses click here
Every trader picks their own lane. Swing traders (the patient dogs) wait for the fattest bones, big moves over days/weeks. Scalp/day traders (the fast movers) grab smaller chunks, back-to-back. At the end of the day, the difference boils down to time in the trade. How long do you usually leave your long/short positions open?
Scalp trading
Scalp trading is a strategy where traders aim to secure quick profits multiple times within a single day. Scalpers typically use very low timeframes such as 5 seconds, 1 minute, or 5 minutes to analyze trades. The volatility of crypto makes it possible to capture significant moves, like a coin gaining +4% in under 60 seconds. This style relies less on traditional technical analysis and more on real-time market data. High leverage is often a key component of scalping.
Analysis
Bollinger bands: breakout points are spotted on the Bollinger bands.
Order book is studied to understand timely order flow.
Moving Averages: this tool shows short-term trend movement on the chart and many more tools.
Perks of scalping
Quick profits: scalpers don't wait for days to close their positions, they profit from secondly fluctuations
Skill upgrade: scalp traders open tens to hundreds of positions daily. Their trading skill is honed in this process while sticking to a working strategy.
Less exposure: since it is executed in seconds and minutes, huge price fluctuations don't affect it much.
Scalping risks
First should be the amount of time you have to spend on the chart. It is quite demanding
Transaction fee multiplied by number of transactions can turn to a huge sum, reducing profits
Using high leverage is risky and can increase loss margin.
Swing trading
Swing trading differs from scalping, even though both aim to profit from price movements. A swing trader typically holds positions for more than 24 hours, seeking to capture larger price swings such as buying at support and selling at resistance, or selling high and buying back lower. Swing trades can last anywhere from 2 to 24 days, depending on market conditions and trading goals. This strategy combines both technical and fundamental analysis for effective decision-making.
Analysis
Candlestick patterns provide valuable insight into market direction.
Support and resistance levels are crucial for identifying entry and exit points.
Perks of swing trading
This type of trading is naturally less risky than scalping. The leverage is low and risk management techniques can be applied comfortably.
It does not require steady monitoring. Unlike a typical scalper spending hours on-screen, swing traders can do without the stress as they're in no hurry to cashout.
Also, the profit margin is often pleasing if the trade goes as planned.
It is easier to maintain a trade journal due to less trades
Swing trading risks
During high volatility, swing trading can cause mental cum emotional rollercoaster— can drive to wrong decision making.
As it is mostly voluminous, a loss hits hard.
Summary
Other trading styles like day trading and position trading also work in crypto.But for full-time crypto jobbers, scalping & swing trading are often the go-to. They bring higher reward potential but with higher risk too.
If you don’t have a trading journal yet, join the Flend community to learn how to build one and use it effectively to become a smarter, more profitable trader.
Kickstart your trading career here!
Register and get your welcome bonuses click here
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