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What are the key indicators to look for when applying the alligator trading strategy to cryptocurrency?

avatarDouglas TavaresDec 25, 2021 · 3 years ago1 answers

When applying the alligator trading strategy to cryptocurrency, what are the important indicators that should be considered? How can these indicators help in making informed trading decisions?

What are the key indicators to look for when applying the alligator trading strategy to cryptocurrency?

1 answers

  • avatarDec 25, 2021 · 3 years ago
    When applying the alligator trading strategy to cryptocurrency, one important indicator to look for is the correlation between different cryptocurrencies. By analyzing the correlation, traders can identify potential opportunities for diversification and risk management. For example, if two cryptocurrencies have a high positive correlation, it means that they tend to move in the same direction. In this case, traders may consider diversifying their portfolio by including cryptocurrencies with low or negative correlation. This can help reduce the overall risk and increase the potential for profit. Additionally, by analyzing the correlation, traders can also identify potential arbitrage opportunities between different exchanges. Overall, considering the correlation between cryptocurrencies is an important aspect of applying the alligator trading strategy to cryptocurrency.