Understanding the Block Chain

Decrypting the Crypto Puzzle

The world of finance is ever evolving. With the advancement of technology and internet, the opportunities in the world of finance have become almost infinite. A decade back, we probably could never think of something like virtual currencies and this being developed as an alternative to the traditional currency. All that we could imagine about a paperless economy was the money in our bank’s accounts and the online transactions we could perform with that money. The interesting fact is how this form of money can be considered as legit without it being regulated by any Government body like an Apex Bank. The creators claim that these work on the blockchain concept and are powerful, safe and decentralized. Even while the majority of the financially literate crowd still continue to have their doubts on this form of currency, it seems to have taken the financial markets by storm.

The Block Chain Technology

The internet was one concept that changed the world and has definitely made our lives better. Similarly, Block Chain Technology is one such invention whose possibilities are yet to be ascertained. Though this was invented to create digital currencies, the technology is viewed as a gateway to many other platforms. In simple words, blockchain technology is an incorruptible digital ledger of transactions that are stored chronologically. The information stored is continuously reconciled or updated. This technology can be used not only to record the financial transactions but also to virtually present anything of value. Hence this technology serves as a base for the development of an alternative to the traditional form of money.

The Ethereum Blockchain

Ethereum is one of the cryptocurrencies created followed by the popularity of BitCoins. It was developed by a Swiss Non-profit organization. It is a decentralized platform that is capable of executing smart contracts as it can transfer the value and represent ownership of property. The powerful blockchain technology is what provides a safe and secure way of conducting these transactions. This is perhaps the main reason for the quick acceptance of this platform worldwide.

Novel Platforms of Trading

With the introduction of these new forms of currency, there has been a spurt in the number of online portals that offer trading propositions in this field. The portals that offered to trade in Forex are now offering an online trade of cryptocurrencies as this field seems more profitable. Ethereum being one of the popular cryptocurrencies, we have Ethereum Code Ltd that offers an automated trading platform to deal with different types of cryptocurrencies. The website provides demo versions so that the user can trade on it to understand as to how this platform works. It is a good choice for investors who are new to this type of trading.

 

 

How Do You Select Time Frames For Trade On

Whether you are a day trader, a swing trader or a positional trader, the first thing that pops up in your mind is what time frame to trade on. The time frame that you are most comfortable trading on is your base time frame. This will help you understand the other two time frames that you should be trading with.

Once you know what your base timeframe is the next step is to know what should be the minor and the major time frames. This is the time frame above and below the base time frame. So suppose your base time frame is a 5-minute chart then your major time frame chart will be a 15 minutes chart and the minor time frame chart will be a 1 min chart. This same principle can be applied to various time frames and for different types of traders.

What does each time frame tell you?

The major time frame is basically where you will need to check the trend of the asset you are trading in. This will give you an idea of whether you want to be a buyer or a seller on this particular security. Once you understand that then look for a base time frame and here you need to know where to be a buyer or a seller. You will be looking for pull-backs here to enter the trade. The lower time frame is used to fine-tune the entry levels that you have marked on the base time frame.

You may also be a breakout trader. In such a case you want to ensure that the breakout trade that you take is in line with the major time frame. If you are taking a long breakout but the major time frame is in a downtrend then you are likely to be stopped out.

The most powerful and high probability trades are those when all the three-time frames are moving in the same direction. Check out the full review.

Entry and exit on the base time frame

Make sure that your entry and exit is in the base time frame. You cannot use a 15-minute chart to plan your entry and then a 5-minute chart to plan your exit. This does not work out. If you do this then you will be stopped out of the trade soon or will get out of the trade very fast, only to see that the price moves high in your trade direction. The minor and the major time frames are like add-on indicators but all your trading decisions need to be made on the base time frame only.