Crypto Trading Strategy :
Counter Trend VS Follow the Trend

As a trader, it is very important to determine the trading strategy to be used. There are many trading strategies out there, but in this article, we will focus on discussing 2 general trading strategies that you should know, namely the counter trend strategy and the trend following strategy. How to determine the best trading strategy for beginner traders or professional traders. Check out this article to find out the answer.

Counter Trend and Follow Trend

Counter Trend Strategy

One of the trading strategies that will be discussed in this article is Counter Trend. Just like “Counter” in English means to fight. So the Counter Trend strategy is a position against the market direction. In the case of crypto trading, a counter trend is defined as a trader’s step in anticipating a price reversal by opening a trading position against the direction of the majority of the market.

Trend Follow Strategy

Counter which means to fight, while following means to follow. In contrast to the counter-trend strategy, the trend follows strategy is a position to follow the market direction. Traders will look for opportunities when the market is trending in one particular direction.

Better trading strategy

In trading crypto, there are two strategies that can be used: counter-trend and follow the trend. The two strategies have differences that can be used to adjust to market conditions. So as a trader there is no need to choose one of them. But before determining the right strategy you also have to do technical analysis and fundamental analysis.

Choosing a trading strategy can be seen from the market trend. When the market is experiencing a trend change in the near future, it is suitable for traders to take advantage of a counter-trend strategy. On the other hand, if the market is running continuously or in a breakout condition without a reversal, it is better for traders to use a trend following a strategy to follow market movements.

The decision to follow the market or fight the market is very necessary to pay attention to the right timing. By learning the right time to use a counter trend or follow a trend strategy, you can make transactions safe from floating. It can be concluded that the best strategy is to adjust market conditions.

Now you can determine the right strategy for you, right? Don’t forget to always Do Your Own Research (DYOR) before trading. You can read news, information, and tips about cryptocurrencies on the Litedex Blog. Also follow our social media on Instagram, Twitter, Telegram, and Tiktok.

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