Greetings dear readers and lovers of cryptocurrency trading, this time I bring to the friends of the @LeoFinance community a new theoretical and descriptive contribution on the interesting world of technical analysis oriented to the cryptocurrency market.
It is worth mentioning that the prolonged sideways zones experienced by the markets usually culminate in sudden ruptures, this applies both to accumulation zones and distribution zones, because after long periods of sideways prices and indecision, sudden ruptures usually occur.
It is worth clarifying that these sudden breaks generate the strong impulses that develop the price action, which end up breaking important supports or resistances, a fact in itself that triggers feelings of panic or greed at certain moments in the market.
Confirmation of breaks / Indicator ROC
One element to note is that in the case of the ROC indicator, unlike other oscillators and momentum indicators, the ROC indicator helps to identify "true" breakouts, because its configuration makes it possible to identify the extremes and anticipate the breakout points.
In the following chart, that the price action of the XRP/USD is in a prolonged sideways zone that generates a lot of expectation, now notice that the ROC indicator is making a range, but before the price action starts to rise and make a sudden breakout note how the ROC indicator anticipates and starts to move above the zero (o) line in a bullish direction.
As in the previous installments, I hope that this material has helped you to expand your trading strategies.
SOURCES CONSULTED
Cory Mitchell Price Rate Of Change Indicator (ROC). Link
OBSERVATION:
The cover image was designed by the author: 
, incorporating image: Coinmarketcap
, incorporating image: Coinmarketcap
