Sunday, 26 June 2016

CRYPTOTRADE TERMS



MARKET CAP: This is the market value of the coin, it is the number of shares remaining (available supply) multiplied by the current price.
TOTAL SUPPLY: This is the amount of coins already in supply, if this is more than the available supply there is a tendency for the market value of the coin to increase.

TRADE VOLUME: This is the total quantity of coins bought and sold during a trading day, it indicates the coin’s popularity and acceptance in the market.

PRICE CHANGE: this is the percentage change in price of a coin within a period.

 

SUPPORT: the lowest price within a market period.

RESISTANCE: Highest price within the period.

EXHAUSTION: This signals the potential end of a trend, it happens when a market reaches its top and traders who are afraid to miss out start to pile in. this exhausts the number of buyers. It is shown when there are sharp changes in price combined with sharp changes in volume.

BULLISH SIGNS: When prices stay higher after a second decline in trade volume

REVERSAL: After a long price move higher or lower, if the price range shows little movement, with heavy volume, it often means a reversal. A rise in volume on a breakout from chart patterns indicates strength. A low volume indicates a false breakout.

CANDLE STICK: These are the indicators on the chart that show trade volume for a coin in a period. The indicators appear like conventional candle sticks with a hollow body tip and a middle thread. The red candles indicate, sell orders within that period, while the green candles indicate buy orders, the higher the buy orders within that period the higher the price rise.

ORDERS: An order is an instruction to buy or sell at a trading venue.

PUMP & DUMP: This is when the price of a coin is boosted based on a false and exaggerated statement, the perpetrators usually sell their positions once the hype has led to a price rise.

SHORT AND DISTORT: This is the opposite of “pump and dump” here the perpetrator uses criticism to drive the price of a coin down in order to buy at a lower price when the price crashes.

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