What is 30D in Cryptocurrency Trading?
To consistently make money in the markets, traders should identify an underlying trend and trade around it accordingly.
Crypto markets can be split into different time frames revealing trends of the trading pair in the picture. Generally, traders can analyze a pair’s time frames from as low as the seconds and progressively to the minute, daily, weekly, and monthly charts.
What is 30D?
In crypto, “30D” means market data of a given asset collected in the last 30 trading days.
The 30day or 30D data provides insight into trading info such as trends and market patterns to help make long-term informed trading decisions.
However, traders can use their preferred time frame to define the intermediate trend and a faster time frame to determine the short-term trend.
Pairing Time Frames and Trader Type
A swing trader, whose positions can remain open for several days, could use weekly charts to define the primary trend and 60-minute charts to define the short-term trend.
A day trader, whose positions are always closed at the end of a trading day, could trade on the 15-minute charts but use the 1hr chart for medium trend definition and the five-minutes chart for entry.
A long-term position trader, whose positions can remain open for weeks, even months, could focus on weekly charts while using monthly charts to define the primary trend and daily charts to determine entries and exits.
The selection of what group of time frames to use is unique to each trader. It is closely associated with their risk profiles. Ideally, traders will choose the main time frame they are interested in and then select a time frame above and below it to complement the main time frame.
As such, they would be using the long-term chart to define the trend, the intermediate-term chart to provide the trading signal, and the short-term chart to refine the entry and exit.
However, one warning note is not to get caught up in the noise of a short-term chart and overanalyzing. Short-term charts are often used for trend confirmation of the primary chart.
Since the subject matter is 30D, it is paramount to explain its importance.
Importance of 30D
Like many other financial market traders, cryptocurrency traders need historical data on an asset to conduct an adequate and thorough analysis of the asset’s expected performance.
Typically, analyzing the history of specific metrics such as the opening and closing prices, trading volume, and trends of a particular crypto asset over several 30-day periods represented in a candlestick will inform the asset’s future performance.
Other use cases of 30D Data
30-day data could also represent data that is collected from the business over a period of 30 days. This data can be analyzed to gain insight into the business trends and patterns. Besides, it is used to calculate trends in the company’s sales. It can also help predict what will happen in the future for the company.
Many investors use this method when they are trying to find out how well a business is doing.
The Bottom Line
Reviewing longer-term charts can help traders confirm their hypotheses. More importantly, it can warn traders when separate time frames are disaccord.
