Crypto Trading Basics Trend – Part 1

This guide will show you how to use the Crypticorn AI Prediction Dashboard—even if you’re brand new to trading! The guide has two parts. If you are already experienced with trading, you can skip the first part and go straight to the second part.  If you are new to trading, it’s best to start with the first part of the guide which is this one.

Authors: https://x.com/Bl0ckChainRonin and Mr.A; both seasoned traders

Trading Basics – What is Trading?

Trading refers to the buying and selling of financial assets like stocks, cryptocurrencies, or commodities to make a profit.

We start with the absolute trading basics for directional trading. Directional trading means we try to forecast a direction (long or short), place our trade to bet that the chart will move in that direction.

Basic direction trading strategies are:

• Trend Following
• Mean Reversion
• Momentum
• Break-out

These strategies are also traded by Crypticorn’s AI Trading Agents or automated trading bots. For manual trading we are going to focus on trend following strategies in the next sections and chapters.

Why Is Crypticorn AI Prediction Dashboard Great For Trading?

Crypticorn AI Prediction Dashboard is like a super-smart helper that looks at lots of market information very quickly. It can find patterns and predict trends that people might not see. This makes it easier for traders to make better, smarter, and informed decisions without needing to learn all the tricky details.

 

What Is A Trend in Directional Trading?

A trend means something is moving in a certain direction over time. In trading, a trend shows whether prices are going up, down, or staying the same—just like fruit prices at a market!

How To Identify A Trend in Crypto?

Trend Following (Most Beginner-Friendly Trading Strategy)

Imagine you’re watching the prices of fruits at a market. In trading, instead of fruit prices, you will watch how the price of things like Bitcoin (BTC) or Ethereum (ETH) moves.

 

Uptrend (Prices Going Up) → Like Apple Prices Rising 🍎

If the price of apples keeps going up every day, it means they are becoming more valuable. In trading, when prices are rising steadily, it’s like apple prices increasing—the market is going up.

Downtrend (Prices Going Down) → Like a Falling Banana 🍌

Now, picture a banana rolling down a slope. It keeps going lower and lower. This is like a price dropping in trading—it keeps falling over time.

Sideways (No Clear Movement) → Like an Orange on a Flat Table 🍊

Think of an orange sitting on a table, rolling just a little from side to side but not really going anywhere. In trading, this happens when prices move back and forth without going much higher or lower.

How To Determine The Type Of Trend?

One way to determine the type of trend is by using a Moving Average. It’s like a magical line that helps you see the average price over time.

If the price is above the magic line, the price is likely going up (uptrend).

If the price is below the magic line, the price is likely going down (downtrend).

 

Trading Example: Moving Average for Crypto

Imagine Bitcoin (BTC) is like fruit prices at a market. One day, the price starts going higher and higher, just like apples getting more expensive every day. If the price goes above the magical Moving Average line, it means, “Wow! Bitcoin is going up!” 🍎📈

Imagine Ethereum (ETH) is like fruit prices at a market. One day, the price starts going lower and lower, just like bananas getting cheaper every day. If the price goes below the magical line, it means, “Uh-oh, Ethereum is going down!” 🍌📉

 

What To Do Based On The Trends?

Buy when prices are going up → If apple prices keep rising, it’s a good time to buy apples before they get even more expensive! 🍎📈

Sell when prices are going down → If banana prices keep dropping, it might be better to sell now. 🍌📉

Ignore when prices stay the same → If orange prices aren’t really changing, there’s no reason to buy or sell right now. 🍊

TIP: Beginners are highly advised to avoid trading when the trend is moving sideways or when the price is floating on the Moving Average line (example above), as there is no clear trend, making predictions harder and increasing the risk of losses.

 

How To Add The Moving Average Line To The Chart?

You can add this line to your chart using platforms like TradingView (Highly recommended) or the indicator section in the Crypticorn AI Prediction Dashboard.

For traders using a 1-hour timeframe and higher, setting the Moving Average to 50 (also known as the 50-period MA) can help identify whether the market is trending upward, downward, or moving sideways.

We use Tradingview – https://www.tradingview.com/

Conclusion on Crypto Trends

This should help you and your trading to get a better understanding of trends in the crypto space. Here is the second part: Crypto Trading for Beginners where we are going to trade with Crypticorn’s Chart Prediction Dashboard.