When trading, one of the biggest question me and you will ever want to answer is knowing when to sell or when to buy. Just never forget, buy cheap and sell expensive; but the real question is when. If a pair is having a bullying trend, should I sell right away or wait because I may lose some potential earnings; on the other hand, if the pair is having a bearing trend, should I buy right away, or should I wait a little longer? Let's say trading is the art of predicting the future by knowing the past.
Thank god, trading experts have given us metrics and one of them is EMA. I will show you some very basic use of EMA to help you decide when to buy or sell.
The RSI is a momentum metric that helps to determine when it is a good moment to sell or buy. It's valued with nondimensional units between 0 and 100. The basic formula to calculate it is given by:
RSI(t) = 100 - 100 / (1 + RS(t))
RS(t) = Average gain of up periods during the specified t time frame / Average loss of down periods during the specified t time frame
The interesting thing on this metric is that it will work regardless the range of the variation. Thanks to this metric, you can see the likelihood of a given price. But, you can use it to know when to trade. Usually, when RSI returns a value higher than 70 it means it is a good moment to sell and lower than 30 it would be a good moment to buy.
With a little more of statistics, this metric could be used determine if a currency is a candidate for trading. For example, if a pair of a given time period hits many times the low and high thresholds, it could indicate the currency has enough fluctuations for trading. Of course, more conditions must meet.
I must say, studying a Master's open your eyes in many ways. One of them is the know-how about how to actually do business with IT. As a Computer engineer, all IT is just IT. ITAM gives a very good program called MTIA which it is in my opinion, the perfect bridge between IT and business management. It will give you the tools to monetize the technology. I might think the MTIA program might see the future of the FinTech in a very naive way (the program, at least in 2007-2010, did not have any subjects related to cryptocurrencies).
I must recognize I delayed getting into cryptocurrencies. Although I was aware of Bitcoin, I did not take it seriously because I was not able to go to Walmart and pay with it. At that time I did not completely understand how to convert the cryptocurrency to my local currency.
In late 2016, I started to study the cryptocurrencies and built a little miner. After some readings and studies about the cryptocurrencies fluctuations, its relationship with trading, and financial impacts, I took the call not only to mine them but to make them as much as profitable I could. I decided to start trading.