If you’ve been in crypto trading for some time already, it shouldn’t be a surprise to you that without a strategy, the chances of making a profit are slim to none, as it becomes a gamble, not trading. In particular, the crypto market, which is known for its high volatility, requires a serious attitude. So, before you start trading, it is crucial to understand how you are going to do that. What kind of methodology is most suitable for your trading style and goals?
One of the most popular strategies in crypto trading is QFL. Let’s take a closer look at what it stands for and how it can help you.
See more: What is qfl crypto
QFL stands for Quickfingersluc, and sometimes it is referred to as the Base Strategy. Its main idea is about identifying the moment of panic selling and buying below the base level. If you can comprehend the QFL strategy, you will be able to make sense of the green and red candles when looking at the coin’s chart. Being able to understand the chart’s behavior will make it easier for you to calculate the right time for selling or buying the cryptocurrency you are interested in.For better understanding, it is necessary to grasp the basic concepts that are connected with the price movement on the candlestick graph:
Base level or Support Level refers to the lowest price level that was reached before the moment the price started increasing again. At that level, you can notice that buyers of some cryptocurrencies make a strong reaction.
Rebound level can be observed when the coin price starts moving upward just right after it has touched the Base Level. You can witness the rebound effect after strong buyer reaction, which moves the price up again.
Resistance Level refers to the highest coin price right before the increase stops, and the price starts dropping again. Resistance level is the one you see prior to the panic selling, the process that drags the coin price down.
Crack refers to the moment when there is a strong pulse movement of the ticker at a distance from the base level to the next rebound level. Crack is the one that helps in forming the safe zone.
How to use QFL strategy in crypto trading?
After we have covered the basic terms, we can now move to practical use of QFL. Let’s take a look at the actions that are involved in this Base strategy.
Choose what pair to trade. Look for the cryptocurrency with whippy chart
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This is a key action for making profit from exchange platforms. Whippy chart means that the price fluctuation can resemble a whip because of the coin price frequently going up and down. These kinds of coins with an unstable market allows traders to make profit since they have multiple entry points, unlike stable markets. Well, as we know, most of the coins in the crypto market meet this requirement as it is known for its volatility.
Find strong bases with higher rebounds
High rebounds are characterized by significant increase in price from the base level. So first you should study the chart and based on historical data locate the strong base level from which the rebound will happen and analyze its strength. Strong base can be determined when the price goes below the previous base nftgamef.comer rebounds mean there is a strong reaction in the market, which can make your QFL trading action profitable.
Look for when panic sales can happen. Set an alert on your preferred base level via crypto market scanning tool
Find out how often panic sales occur and the market returns to its previous base level. When you know the base level and panic sales frequency, you can figure out when the new crack happens in the future. When crack occurs, that means you are in the safe zone and it is time to buy the coin you are interested in.Now that you have learnt the chart and know the base level, you should get yourself a suitable and reliable crypto software for monitoring cryptocurrency price movement. This step is crucial, since you’re probably not going to monitor the coin’s chart 24/7, right? Use these tools to set a base alert and make your buy trade. Remember to use only the tools that you can trust and that have been for a long time on the market: TradeSanta is the one that can fill your needs here. You can set your QFL signals via TradingView and link them to the TradeSanta trading bot.
Buy when the price is below the base level
Buy the cryptocurrency when it has dropped below the last base level. This usually occurs when traders start panic selling because of fear, or because the “whales” decide to manipulate the chart and spread panic among other investors by selling a huge chunk of their investment. After that, you can expect these “whales” to buy even more when the price has dropped nftgamef.com right move would be to catch that moment when the chart has a long red candle and buy at that time.
Set a target price and sell during rebounds
There is simply no 100% chance of predicting the level until the coin’s price grows or when it will start dropping again. So, if you do not want to miss the potential profit, it is crucial to set the target price at which you are willing to nftgamef.com is important to buy the cryptocurrency when it is below the base level. The reason is that when it starts to rebound, you will have a profitable advantage. So when you see a strong buyer’s reaction and the price starts moving upward again, it is the right time to make a profit.
Spread out your buys and sells orders to maximise result and control the risk
Use your tool to set multiple buy and sell orders to increase your chances of making profit. In that case, you can distribute your investments across multiple orders instead of going all-in just once. If you follow the buying in increments strategy, it will give you an opportunity to make several entries in case there are further drops in the price. The same goes for selling: if you sell in increments, you will be able to make more profit if your cryptocurrency further increases in nftgamef.com kind of ladder order can give you an advantage by buying or selling your coin of interest at different price points.