How to trade Ripple CFDs
This article will show different aspects of trading the XRP/USD crypto pair, applying technical analysis aspects like a trend, momentum, support, and resistance, and displaying how to day trade the pair on MT4.
How Volatile is Ripple?
We can say that Ripple vs the US Dollar (XRP/USD) is surely moving with speed and rush, on the up-and presently on the downside.
Current vs. historical price: trending or ranging?
A confirmed trend has not proven itself yet despite the powerful momentum up and down because the price is not giving a clear trend channel.
We, therefore, consider the XRP/USD to be in a range without a confirmed trend.. even though a drop to new 2019 yearly lows would establish a series of decreasing highs and lows and we could consider finding itself in a downtrend.
But even if we find ourselves in a range-bound environment, the fast price action gives trading opportunities.
How to Trade Ripple CFDs
Support and Resistance are always a basic part when applying technical analysis to the price chart. The S&R concept becomes even more essential when the pair is ranging rather than trending.
When trading Ripple, it is important to use a Support and Resistance indicator that works dynamically in our view. There are 2 major reasons for using a dynamic rather than a static one:
The volatility of price action is high.
There is limited historical data.
Another important factor remains candlestick pattern.. which give guidance about the price direction and whether the price is breaking, bouncing, or failing to break or bounce. Read more
Is it possible to make money with XRP/USD?
It is possible to earn money from trading XRP/USD. There are a couple of basic factors you should take into consideration when trying to gain money when trading the markets.
Trading Psychology
It is an important aspect to stay balanced in your mind when tackling the markets. Revenge trade, over trade, and analyze many other pitfalls that trap traders into losing habit and false biases. Read more
Risk Management
When traders risk too much, this will turn into gambling, and the opportunity of losing the whole trading cap and maybe more increases strongly in the long run. To avoid losing the whole trading cap, each trade needs to be split into small quantities of the cap.
Trading Analysis and Strategy
Traders need to approach the markets with a strong trading plan that indicates how to analyze the charts, how to enter the trade, manage the setups, and exit the trade. Each trader will have their own trading style and prefer different kinds of instruments and indicators.
Market Sentiment – Affect on hype in the media
Enthusiasm for Ripple was high when it set a new high vs the US Dollar on 17 May 2017. Price action made a big spike but the momentum was a burst of energy that was unsustainable in the long run. Price needed to correct.
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