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How To Analyze Any Chart From Scratch - Episode 5Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst. Today we are going to go over a practical example on BTC, but you can apply the same logic / strategy on any instrument. Feel free to ask questions or request any instrument for the next episode. You can find the previous episodes below "Related Ideas" Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
BITSTAMP:BTCUSDEducation
by TheSignalyst
41
📊Bitcoin consolidation pattern! Read the description!Hi friends, you've probably noticed that Bitcoin and cryptocurrencies start to rise or fall after consolidation. In this idea I will explain why consolidations happen, how to use this in cryptocurrency market analysis and where the next ATH for Bitcoin will be. 📊What is a consolidation? Consolidation is the small price range. Unlike a bullish or bearish trend, a consolidation is the absence of a trend. As we can see from the chart after consolidations price fall or rise for amazing %. In trading it calls "become volatile". 🔸Why consolidations happen? Actually, consolidations happen because of traders sentiment. If the price don`t move in any side this is bad for most of them. As we know, the biggest part of traders earn on the huge price movements. So when the price start consolidate there are no bull or bear power and price move in the range. 🔸What happend when the price leave the consolidation range? Consolidation is like a spring. The harder you squeeze it, the more it bounces back. It's the same with the price. For example, Bitcoin starts to rise or fall a lot when it comes out of consolidation, the spring rebound, and this has happened in all the examples in Bitcoin's history. 🔸What will happen to BTC next? For more 516 days BTC price is in $29-64k consolidation range. Now we can see the largest consolidation since 2015-2016 before the price reached ATH in 2017. 📈If we follow the rule that the longer the consolidation, the bigger the fall/rise, it's actually hard to predict what will happen next. In any case, Bitcoin will not be able to grow by 5000% in the next bull cycle because of its huge capitalization, but 600-900% growth from global lows ($20-26k) is quite possible. 🚩Traders, what do you think about this pattern? What will be the next ATH for Bitcoin in the next bull cycle based on this rules? Write in the comments, let's discuss it together. 💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU. P.S. Personally, I open an entry if the price shows it according to my strategy. Always do your analysis before making a trade.
Education
by Yuriy_Bishko
10
📊Why do the trading patterns work?Hi friends! Probably all traders began their career by learning the trading patterns. A trading pattern is a price movement pattern in a certain range. Generally there are 2 types of patterns: candlesticks (shooting star, hammer, bullish or bearish engulfing) and figures (triangles, channels, flags, head and shoulders, etc.). The number of them is constantly increasing, through the change of market, but there are up to 50 main patterns. 📊So why do the trading patterns work? The answer is very simple - because many traders use them in trading. Imagine a traffic light with a red light🔴 According to the rules all drivers who have the same signal stand waiting for a green light✅ Here, it lights up and allows all cars to move in the right direction. It's a clear rule, not only in your country, but in all the countries in the world. The situation is the same with trading patterns. Let's imagine that a chart is a road, and a pattern is a light. The price rises or falls and a pattern is formed. You have determined that it is a bullish pattern, such as a bullish wedge. Of course, you are waiting for the wedge to move to the upper boundary and break it up, that will be a signal to open a trade (green signal to move✅). At the same time, all the drivers (read as "traders") begin buying with you and pushing the price higher and higher. Why do traders do this? As I said in the beginning, patterns, like the rules of the road, are learned by all traders, regardless of nationality, this is the general rule, that is why these patterns work. 📊In what cases do they not work? As you know, most people in the market can't be right. Conventionally, if everyone opened a long and bought Bitcoins at $50,000 and the price went up to $100,000, then someone should have bought those Bitcoins from you for 100% more. If everyone held a long, there would be no one to sell and no one would make a profit in the end. That's why there are always 2 sides in trading: buyers and sellers. With the increasing popularity of patterns, most traders and especially beginners who first study patterns began to open trades according to these rules and .... took a loss. Patterns work especially badly on the cryptocurrency market, which shows how young this market is. But why? All because most cannot be right when trading patterns, otherwise no one would make money. 📊What should I do if I trade only paterns? I would recommend adding more rules to your trading strategy. These can be different trading tools, filters which will help you to remove "fake" signals and increase win rate. For example, trade not the triangle pattern, but its false breakout using a volume indicator: 1️⃣A false breakout in most cases shows that the price will not go in the direction of the breakout, as there are too many willing to open a trade in the direction of the price movement. 2️⃣The volume indicator will show the actual number of buy and sell orders. If the volume at a false breakdown of the lower boundary of the triangle has increased - this tells us that the price is more likely not to move down, as there is serious support there. This is the simplest example. You can also use indicators, additional trend lines, candlestick or fundamental analysis. 💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU.
Education
by Yuriy_Bishko
6
📊What is a key level? How to use it in trading? Clear tutorial!What is a key level? A key level is a price level on the chart that creates the support or resistance to the price when it falls or rises. A key level is also called an extremum. 📊There are 3 types of levels in total: 1. Resistance level — when price rises and rebounds down when it test the level. 2. Support level — when price falls and rebounds up when it test the level. 3. Mirror level — when the level is both support and resistance. 🚩How to identify the key level? As a rule, the key level may be either the price maximum (high, H) or minimum (low, L). Price maximums occur when the price moves in a trend (bearish or bullish). It is harder to identify the key levels during consolidation, because often the price simply blurs them, making false breakouts, as we can see on the Bitcoin chart. Especially often the key level is the global highs (ATH). It can be found on any timeframe, but the higher it is (4 hours, 1 day, 1 week), the more clearly they work, because the level of 1 week may be identify by a scalper, a swing-trader or an investor, while the local levels of 1-30 minutes are only looked at by scalpers, i.e. a smaller total number of traders. Usually, the key level is an even number: 1, 50, 100, 1000. For example, $ 50,000 for Bitcoin, $ 2,000 for Ethereum, $ 1.5 for Forex pairs. 💹Why do key levels work? It's all because the traders place their orders near these levels. To put it simply, key levels work and price reacts to them, because a large number of traders often use them. Every trader knows that when Bitcoin is falling, the level of $ 20,000 will be support for the price, because this is the level of the previous ATH, and most traders put buy orders, so the bounce of the price can be huge (10-20%). ✅How can you use a key level in trading? There are many different uses of the key level in trading, for example, trading a rebound from a level when a trader places a buy order below the level or a sell order above the level. As I said before, the more prominent the level on the chart, the stronger the price pullback, so some traders place their orders near key levels in advance to buy or sell at the best price. Also, I use the key level on 30m-4h timeframses to identify price weakness or strength for false breakout trading. A false breakout of a key level shows that most traders are set up for a price move in the other direction. 🔥As many traders as there are ways to use the key level. My advice is to be craftier and use the key level with the rest of the technical analysis instruments, candle patterns, indicators. That way your win rate can increase significantly when different approaches are used together. 🏁Traders, how the key level helps you to identify the best entry point? Share your idea or a screenshot in the comments! 💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU. P.S. Personally, I open an entry if the price shows it according to my strategy. Always do your analysis before making a trade.
Education
by Yuriy_Bishko
6
➖ 3 Tips To Improve Decision Making/Profits While Trading CryptoTo make money trading you need to have the right strategy, make the right decisions and be patient… But there is more. It can happen that I share with you 5 trades from which 4 are successful and 1 is not. You go all-in into 1 trade and somehow you picked the only one that didn't go up. Your chances were really high yet someone can make the wrong call over and over even with the right plan… Some people call it bad luck, it is not. In such a scenario we have to look at other areas of our lives. Trading can make big sums of money and big sums of money can change your life. If you are not ready for change, if you cannot accept change, new money isn’t likely to able to get to you. If in your life you are overloaded/stressed, then you will continue to pick the wrong trades. So, to have a better chance to be guided by your intuition, your higher self, your Soul rather than a misguided ego… Make sure to have the right mindset and be open to accepting the changes that the profits you are looking for will create in your life.   TIP#1 | GET RID OF THE OLD! When was the last time you changed your purse/wallet? 
Not your Bitcoin wallet, even though that one needs to be updated often, but your physical wallet/purse you carry around. When was the last time you changed your closet? 
How old is that jacket or blouse, how old are those jeans? 
That shirt you never wear but will wear one day when the event comes… 
Or worse yet, that dress that has been sitting there yet your 15 years of age are long, long gone. In order to make room for the new, the old has to go. This is something that I practice always and it was really hard to implement at first, not really for me, but for all those around me. It was really hard for them to detach from the old. I got rid of everything, even without having the money to buy the new, I completely trusted in internal guidance and got rid of everything as fast as I could. Then the money quickly materialized as soon as the necessity was created (the energy was released)… Getting rid of the old stuff opened space in my energy field for new stuff. Just like you cannot pour liquid in a glass that's already full, if you empty the glass, something new can fit in. Start by getting rid of all of your clothes that are 1 year or older… Regardless of what it is… And just watch the magic happen. You can also change your phone, your car, your hairstyle, your way of walking, your exercise routine, the place you live, your friends, etc. Anything old that goes away, the energy is released and something new can come and takes its place. Can be the same but an upgraded version or something completely new… You can have fun with this… Get rid of the old.   TIP #2 | FAST & LIQUID FOODS I will explain this one in a way that is directly related to trading. Food is heavy on the human body, especially conventional foods which is what most people consume. The digestion process is high in energy consumption… Some people can notice becoming weak/lethargic after eating… That’s because your body needs to use tons of energy and resources to process all the ingested food. As so much energy is used for digestion, little energy is left for all the remaining tasks that your body needs to perform for you to be at your best. Thinking? Goes second. Being wealthy… Secondary as well… Your body prioritizes processing all this food and much of today’s food is highly processed lacking enzymes which compounds the problem. When we fast, we free up tons of energy which can, in turn, be used to heal ourselves… Once we are in good shape, in good health, this energy instead can go to other processes such as thinking, which can help you make better decisions while trading. Now, fasting is not easy for many people so I have another solution for you. You can start by doing “intermittent fasting”, which is basically a half-fast or even better, consume “liquid foods”. You can liquify fruits and vegetables with a juicer or blender, pretty easy, and go on the entire weekend without eating any solid food. You will feel GOD like on Monday. This is just a small taste of the benefits you can get, but it is a great start. Once you start fasting for real you will understand Jesus, the Buddha, Shiva, and all the great “Ascended Masters”… You will understand them just a little bit of course, as they had many other techniques and they felt so much more but this can give you a glimpse into many feelings that not many people are experiencing at this moment. Now, I got to write this about “liquid foods” not to mention juices and smoothies but actual superfoods that can be drunk with juice or water. Are you aware of “superfood powders”? There is a class of supplements called “superfoods” which are the ones I would like for you to research to improve/better your mental processes which can highly assist you in dealing with stress and so making the right choices while trading. I will name the most basics yet powerful ones… * Spirulina powder * Chlorella powder * Hemp seed powder * Ascorbic acid (vitamin C) * Digestive enzymes * Pre-, Pro- and Postbiotics * Liquid minerals Research these and start taking them on juice or water and see magic happen. You will not only improve your trading but your entire life will be upgraded by a few levels… You might start to experience visions very quickly and other paranormal experiences if you are sensitive to the spiritual realms but this is just an extra, the physical benefits are sure to enjoyed/felt quickly as well.   TIP #3 | DEEP BREATHING WITH YOUR EYES CLOSED Last, to finish this long article… We go to meditation. Meditation will calm your mind. This in turn can help you organize all of your thoughts subconsciously, you don’t have to do anything, which will let you see more clearly what it is that you really need to do next in order to get the results that you want or advanced to the next phase of your life. My meditation is the easiest of all and the one I recommend to everybody who is just getting started and it goes like this: 1. Either just after waking up or before going to sleep, or both… 2. Close your eyes and breath deeply for 5-10 minutes. That’s it. If by any chance at any time you open your eyes, restart the timer and start over. You can start with 1 minute if 5 is too much and increase little by little as you feel comfortable. The goal is to stay in peaceful contemplation for 3-5 hours. You can use any type of breathing you prefer. You can breathe deeply through your nose…
Hold for a few seconds and then exhale through your nose… 
Over and over until the timer beeps. Namaste.
BITFINEX:BTCUSDEducation
by AlanSantana
22
📊How to use the VOLUME indicator? Tutorial for traders!The volume indicator is so universal that it is used by most traders, no matter what their trading style. I will talk about the main methods of using this indicator in this idea. 📊What is the volume? A volume indicator is data from the exchange on how much cryptocurrency or shares were traded during a certain period of time. Volumes are displayed in the form of bars. The more bought and sold, the higher the bars on the indicator. How can I use volumes? ✅Volumes show large trades, which helps to understand the sentiment of the market (bullish or bearish). In this GMT example, you can see how traders bought this coin 4 times and did not "let" the price go lower. After that, you could open a profitable trade on a breakdown of the trend line. ✅Test levels as support. The same principle as in the first example, but here there is a clear test of the level by the price. Volume growth in this case helps you to understand the strength of the buyers and open your trade! ✅False breakout is a situation in the market when the price breaks through a key level for a while and comes back under it. This pattern happens very often in the cryptocurrency market. The volumes grew, which shows a large amount of traded volume, but the price did not go higher and showed weakness, and then Bitcoin fell. Keep this pattern in mind. ✅Divergences. You can see a divergence in the Bitcoin price. Divergence is when the indicator and price values start to be different. As volumes rose, so did the price. After volumes began to fall and the price continued to rise, a divergence formed and Bitcoin fell by 50%. Divergences can be looked for in any cryptocurrency and any timeframe. ✅Indicators. Volumes are a classical indicator, on the basis of which many other well-known indicators are built: VWAP, OBV, etc. ⚙How can I add the volume indicator to the chart? You need to open "Indicators" on the top panel of TradingView and write "Volume" in the search bar. After clicking on the title, it will automatically be added to the chart. 🚩On what timeframes can I use volumes? Volumes can be used on all timeframes, but it all depends on trading style: 1️⃣ Scalpers watch volumes on lower timeframes: 1m, 5m, 30m. In this way they can identify if the price reacts to a key level, trend line or value zone; 2️⃣ Swing traders use the indicator on timeframes from 1 hour to 1 day. By the same principle as scalpers, you can identify the reaction of other traders to a particular level. For example, Bitcoin has fallen to $50,000 and touched a key level where other traders' buy orders may have been placed. If there were really a lot of bids there, then on the volume indicator, you will see the bars rise as well as price rise. If there was no growth in the bars, it means that most likely the price will fall further. 3️⃣ Long-term traders use the indicator on timeframes from 1 day to 1 week and more. With the help of volumes on higher timeframes, you can identify large liquidation zones on exchanges, important resistance and support levels. Friends, if you still have questions about how to use the volume indicator, write in the comments. What other methods of using this indicator do you know? 💻Press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU. P.S. Personally, I open an entry if the price shows it according to my strategy. Always do your analysis before making a trade.
Education
by Yuriy_Bishko
4
How did Open Interest tell me: Stay long as BTC Dumped!?!BYBIT:BTCUSD I was in 3 long trades as Bitcoin dumped on the 26th of May 2022. I had 2 choices. Close my longs because I saw price dumping below my entry or look at what Open interest was telling me to determine if this was a fakeout. I saw price dropping as OI was dropping. This meant that longs were closing out their positions, which means that when this ended, price could reverse quickly. Longs were closing out their positions and re-entering as shorts. As soon as this selling dried up, Longs started entering and then suddenly shorts were being liquidated, pushing the price up again. This is known as a stop run. Hit long stops and then hit short stops. Be aware of this kind of fakeout as it happens again and again! Learn to trade the retest and why it is important not to short at support and inversely why it is NB not to long at resistance, UNLESS you get a retest of that level! Not financial advice, DYOR. Papertrade before using real money. If this educational snipped helped you, please consider giving it a thumbs up and follow for more like this! Trade Safely and Learn something every day! Shawn
BYBIT:BTCUSD.PEducation
by zartraderguy
📊How to make a trading strategy?What helps the traders to be successful? That's right, their trading strategies. A trading strategy is a trader's plan for deciding whether or not to open a trade. The purpose of the strategy is to help the trader to make more successful trades, to analyze the mistakes and successes. At a time of uncertainty, these rules help to keep calm and make the right decision. Simply put, it's a set of filters that remove unnecessary noise from the charts and help you make right decision. 💹How to develop a trading strategy? Figure out what you want to trade and what you're best at. Do you like trading false breakouts? Let`s do it! Like to trade patterns? Perfect! Pick your best 20-30 possible trades from the past on the chart, and look for those patterns to repeat on the chart. As soon as you get a chance to make a trade, remember the rules of your strategy, and if they all match, then do it. 💹What does a trading strategy consist of? This set of rules includes: 1️⃣ The tool you use (patterns, levels, indicators, waves, candlestick analysis, etc.). For example, a squeeze under the trend line, a false breakout of a level, the exit of the indicator into the oversold or overbought zone - all these trading tools can be used in your strategy. 2️⃣ Risk Management. How much money to use in 1 trade, risk per trade. This is a mandatory ingredient of any trading strategy. You can't be 100% right on every trade, so risking all of your capital is not advisable. The average win rate of traders is 50-60%. That means that 5-6 out of 10 trades will be successful - an excellent result. The other 4 trades will be either loss-making or break-even, so it is better to start with a small amount or virtual account on the crypto exchange. In the picture below, you can see what the risk-to-reward ratio and winrate should be. If you have 50% of successful trades, then at least in each trade you should have RR 1:2 (for 1 risk you receive 2 rewards). To calculate your RR in TradingView, use the "Date and Price Range" section on the left side of the screen and choose "Long Positions" or "Short Position". ✅Example of a trading strategy. Tools: 🔶false breakout of the key level; 🔶volume indicator. Description: you marked a key level of $30420 on the chart. After the false breakout you noticed that a large volume appeared on the chart. Target: the level of highs of $42K. Risk to reward (RR) 1:5. Good for us? Let's look at the table! The win rate of this strategy is 50% and so RR profitable. 🚩Summary: by opening a trade with a risk of $10, you got $50. 💹Advice for beginners: 1. the trading strategy does not have to be yours. You can take the rules from another strategy and adapt them to you, make your own risk management, rules of entering the trade, in the end, how many trades you make per week or month. 2. start with something simple, like a channel trade and a volume indicator that will show you the reaction of a buyer or seller when it touches the channel boundary. Gradually add filters to remove noise from your charts and increase your win rate. For example, do not open a long on altcoins if Bitcoin is falling. Statistically, 99% of cryptocurrencies repeat Bitcoin's movements, so it is unlikely to be a good trade. Unless you know the secret information, or you have more than 8 years in trading, and you have enough experience. 3. make screenshots of your best and unsuccessful trades, analyze problems and fix them, and try to repeat the best trades more often. A trading journal is best for keeping statistics. 🏁Follow your plan and you will succeed. If you still have questions about how to create your trading strategy, write in the comments. Experienced traders, how did you create your own trading strategy? Share it with the beginners! 💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU. P.S. Personally, I open an entry if the price shows it according to my strategy. Always do your analysis before making a trade.
Education
by Yuriy_Bishko
3
BTCUSD | What if...?Hello, dear TW community. Today I would like to introduce my "ridiculous hypothesis" about BTC. As we all know, "Elliot Waves" have 5 impulsive moves. If we look at 1M chart, we are easily to see that BTC has never been bear market at all, all humble blocks (2014-15, 2018) that it have been through so far I might call them as "corrections". What if BTC's real bear market comes every 10 years? Then, 1 BTC's worth is equal to me between $110-$1300 right today. Good luck in trades, buddy.
BITSTAMP:BTCUSDEducation
by maximleanke
12
A Comprehensive Guide to Elliott Wave Degrees (Timeframes)Hello Traders. In this supplemental post to my Elliott Wave guide, I will help you understand wave degrees, and what the numbers actually mean when you are labeling each wave. Identifying the wave level (degree) that you are trading is going to be identified at any given time and will be based on what's known as a "degree". One of the biggest problems that new Elliott Wave traders have is grasping the structure or "nesting" of the wave patterns (check the diagram within the chart above). The patterns identified by Elliott himself, occurs across multiple time frames. This means that a completed "five wave" wave structure on a smaller time frame, for example, the 15 minute chart, may represent just the first wave of a larger wave structure unfolding on a 60-minute chart, and so forth. In a micro-macro sense, each of the unfolding wave patterns is just part of a bigger wave pattern unfolding in the higher timeframes. The sequence from wave 1 through 5 completes one wave of a higher degree (again, refer to the diagram above), that is, a wave belonging to the next higher tier of wave sequences. The movements from wave 1 through 5 completes either a wave 1, 3 or 5 of the higher degree, while the a-b-c sequence completes either a wave 2 or 4 of the higher degree. When you are getting into lower degrees, each wave of the sequence can be broken down into smaller waves accordingly to the same dynamic (this is not so important as many claim to be). The most commonly used degrees are the Primary, Intermediate, and Minor degrees when labeling your micro-macro wave counts. In the diagram above you can see how Wave 1 of the high degree is made up of a smaller 5-wave impulse waves and Wave 2 is made up of smaller three wave corrective waves. And each of these waves is, in turn, always comprised of smaller wave patterns, and so forth.
BYBIT:BTCUSD.PEducation
by XForceGlobal
15
A Comprehensive Guide to Elliott Wave Rules & GuidelinesHello Traders. In this post I will be discussing every single Elliott Wave rule and guideline according to the Elliott Wave Theory. There are many confusions upon traders when applying Elliott Wave rules, as there are also guidelines to be considered when trading. ***RULES AND GUIDELINES ARE TWO DIFFERENT SET OF TOOLS!*** Elliott Wave Theory "Rules" MUST be obeyed, I repeat, they MUST be obeyed, and obeyed precisely for an Elliott Wave pattern to qualify as an Elliott "Wave" - However, the "Guidelines" do not have to be obeyed. The more Guidelines obeyed by an Elliott pattern, the higher its "rating" or "probability" of being correct. This guide is purely a supplement guide and a quick reference for ANYONE who is trying to remember the rules and guidelines. I hope this guide helps you to further advance into the Elliott Wave Theory. Please write in the comment section below if I have missed anything, I will be glad to add them in the update section. ------------------------------------------------------------------------------ We can categorize the Rules and Guidelines into TWO distinctive pattern groups: 1. Impulsive Wave Patterns (5 wave moves), and, 2. Corrective Patterns (3 wave moves) ------- **IMPULSIVE WAVES** Impulsive Wave Rules: •Wave 2 may NEVER move beyond the origin of wave 1 (it cannot retrace more than 100% of wave 1). •Wave 4 may NEVER enter the price territory of wave 1. •Wave 3 may NEVER be the shortest wave. •Impulse waves ALWAYS subdivide into 5 waves. •Waves 1, 3, and 5 are ALWAYS 5 waves. Impulsive Wave Guidelines: •Wave 3 most often exceeds the pivot of wave 1 •On rare occasion, wave 5 will not move beyond the pivot of wave 3. This is known as TRUNCATION (refer to my EW guide). •Usually, wave 3 will extend and have 5 waves within the third wave. Occasionally, two waves will extend (3rd and 5th waves). Never will all three extend. •When wave 3 extends, wave 5 tends to EQUAL in length with wave 1. •When wave 5 extends, it frequently reaches to the length of waves 1 plus 3. •Wave 1 is the least likely to extend, but can be valid. •Sometimes, the extended wave corresponds with the current parent wave. (for example, In a higher degree wave 5, it is common for the lower degree wave 5 to extend as well) •Sometimes, the extended wave will match the number of the current parent wave •The center of Wave 3, normally has the steepest slope of the entire 5 wave structure. •Wave 2 will develop into a ZIGZAG correction, FLAT, or a COMBINATION wave (WXY, WXYXZ). Wave 2 cannot be a triangle in its entirety. •Wave 4 will develop into a ZIGZAG, FLAT, COMBINATION (WXY, WXYXZ), or TRIANGLE. Diagonal Rules: a. Leading Diagonal b. Ending Diagonal A Diagonal is a common 5 Wave Impulsive pattern labeled as a 1-2-3-4-5 that moves with the larger trend (up or down). Diagonals move within two channel lines drawn from Waves 1 to 3, and from Waves 2 to 4. A Diagonal MUST be contracting. There exist two types of Diagonals; Leading and Ending. They have a different internal structure and are seen in different positions within the larger degree pattern. Ending Diagonals are usually more common than Leading Diagonals in terms of probabilities. •Wave 1 of a Leading Diagonal must be an Impulse or a Leading Diagonal. •Wave 1 of an Ending Diagonal must be a Zigzag family pattern. •Wave 2 may be any corrective pattern except a Triangle. •Wave 2 must be less than Wave 1 by price. •Wave 3 of a Leading Diagonal must be an Impulse. •Wave 3 of an Ending Diagonal must be a Zigzag family pattern. •Wave 3 must be greater than Wave 2 by price. •Wave 4 may be any corrective pattern. •Waves 2 and 4 must either overlap or be within 10% of length Wave 3 of doing so. All internal data points are considered. •The time taken by Wave 4 must be between 10% and 10 times the time taken by Wave 2. •Wave 5 of an Ending Diagonal must be a Zigzag family pattern. •Wave 5 of a Leading Diagonal must be an Impulse or Ending Diagonal. •If Wave 1 is a Leading Diagonal then Wave 5 cannot be an Ending Diagonal. •Wave 3 must not be shorter than both Waves 1 and 5. •Wave 5 must be at least 80% of Wave 4 by price. •Wave 5 is never the longest when compared with Wave 1 and Wave 3. •Wave 5 is always less than Wave 3 by price. •The intersection of the channel lines must be beyond the end of the pattern. •Diagonals must move within the two channel lines or be within 10% of gross movement. •Channel lines must converge, slope in the same direction and neither be horizontal. •The maximum number of pattern lengths into the future that the channel lines intersect is 4. •The minimum time for Wave 5 is 10% of Wave 4. The maximum time for Wave 5 is 5 times Wave 3. Diagonal Guidelines: •Wave 1 of a Leading Diagonal is usually an Impulse, but in rare cases may be a Leading Diagonal. •Wave 2 is usually ZigZag family pattern. •Generally Wave 2 is greater than 35% of Wave 1's total price movement. •Wave 4 is commonly a Zigzag. •It is rare that at least either Waves 2 or 4 of an Ending Diagonal is not a Zigzag family pattern. •Generally Wave 4 is greater than 35% of Wave 3's gross price movement. •The end points of Waves 1 and 4 generally overlap. •Expect the time taken by Wave 4 to be between 20% and 5 times Wave 2. •Wave 5 is usually greater than Wave 4 by price. •It is typical for Wave 5 of a Leading Diagonal to end before reaching the channel line. •It is typical for Wave 5 of an Ending Diagonal to exceed the channel line. ---------- **CORRECTIVE WAVES** ZigZag Rules: A ZigZag is a three wave structure labeled A-B-C, generally moving counter to the larger trend. It is the most common three wave Elliott pattern. Zigzags are corrective in nature. •Wave A must be an Impulse or a Leading Diagonal. •Wave B can only be a corrective pattern. •Wave B must be shorter than Wave A by price. All internal points are considered. •Wave B must be at least 20% of A by price. •Although there is no minimum time constraint for Wave B, it must not exceed 10 times the time taken by Wave A. Wave C must be an Impulse or an Ending Diagonal. •If Wave A is a Leading Diagonal, then Wave C must not be an Ending Diagonal. •Wave C must be longer than 90% of Wave B by price. •Wave C must be less than 5 times Wave B by price. •It is not allowable to have both Wave 5 of A a failure (Wave 5 is shorter then Wave 4) and Wave 5 of C a failure. •Wave C must be no more than 10 times either Wave A or B in price or time. ZigZag Guidelines: •It is unusual for a Wave within Wave A to have a greater gross price movement than Wave A. •Wave B should end nowhere near beginning of Wave A •Wave B should retrace at least 30% of Wave A. •Wave B is most likely to retrace Wave A by about 38.2%. •Wave B is next most likely to retrace Wave A by about 50%. •Wave B is next most likely to retrace Wave A by about 61.8%. •The largest Wave in B is usually less than the gross price movement of Wave A. •The time taken by Wave B is usually between 61.8% and 161.8% of the time taken by Wave A. •Wave C is most likely to have a similar price length to Wave A. •The next most likely price lengths for Wave C are 61.8% and 161% of Wave A •The next most likely price length for Wave C is 61.8% of Wave A beyond the end of Wave A. •If Wave C is much longer than 161.8% of A, then the pattern is more probably the beginning of an Impulse than a Zigzag. •If Wave C is complete, and has a greater slope than Wave A, expect the Zigzag to extend to an Impulse. •Although Wave C should always be greater in price to Wave B, in rare cases Wave C can be up to 10% shorter than Wave B. •The largest Wave within C by price is usually less than the gross price movement of Wave A. •The time taken by Wave C is usually between 61.8% of Wave A and 161.8% of the shortest Wave of A and B. Flat Rules: A Flat is a three wave pattern labeled A-B-C that moves generally sideways. It is corrective and counter-trend and is a very common Elliott pattern. •Wave A can be any corrective pattern except a Triangle. •Wave B can be any corrective pattern except a Triangle. •Wave B must retrace more than 70% of Wave A. •Wave B is less than twice the price movement of Wave A, including internal points of Wave B. •Although there is no minimum time constraint for Wave B, it must be less than 10 times Wave A. •Wave C must be an Impulse or Ending Diagonal. •Wave C must share some common price territory with Wave A. •Wave C must be less than twice the longest of Waves A and B, including internal points of Wave C. •Wave C must be less the three times the price distance of Wave A. •Disallow back to back failures. •Wave C must be no more than 10 times either Waves A or B in price and time. •There is no minimum time constrains for Wave A. Flat Guidelines: •Wave A is usually a Zigzag family pattern. •Wave A is rarely an Expanding Triangle. •The largest Wave within Wave A is usually less than Wave A by price. •Wave B is usually a Zigzag family pattern. •Wave B is rarely a Flat. •Wave B is usually greater than 95% of Wave A by price. •Wave B is usually less than 140% of Wave A by price. •The largest Wave within B is usually less than Wave A by price. •The time taken by Wave B is generally between 61.8% and 161.8% of Wave A. •Wave C is rarely an Ending Diagonal. •Wave C is often about the same length as both Wave A and B. •Wave C often ends at point which is a percent of Wave A beyond end of Wave A equal to the same percentage away from the start of Wave A. •Wave C usually retraces a minimum of 100% of Wave B. •Wave C normally reaches to the end of Wave A •Wave C is not often more than 140% of the longer of Wave A or B. •If Wave C is longer than Wave B, then Wave C is often about 61.8% of A beyond end of A. •If Wave C is longer than Wave B, then Wave C is often about 161.8% of Wave A from end of Wave B by price. •The time taken by Wave C is generally between 61.8% of Wave 1 to 161.8% of the shortest of Waves A and B. Triangle Rules: CT = Contracting Triangle, ET = Expanding Triangle A Triangle is a common 5 Wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from Waves A to C, and from Waves B to D. A Triangle is either Contracting or Expanding depending on whether the channel lines are converging or expanding. Expanding Triangles are rare. •Wave A of a CT is always either a Zigzag based pattern or a Flat. Wave A of an ET can only be a Zigzag based pattern. •Within Wave A of a CT, Wave B must be less than 105% of Wave A's price length. The same rule applies for Waves C and D of the CT. •Wave B must be a Zigzag based pattern. •Wave C of a CT can be any corrective pattern except a Triangle. Wave C of an ET must be a Zigzag based pattern. •Wave B of a CT must retrace Wave A by 50%. •For a CT, Wave C must be less than Wave B by price and Wave C must be greater than or equal to 50% of Wave B by price. •For an ET, Wave B must be less than Wave C by price and Wave B must be greater or equal to 50% of Wave C by price. •Wave D of a CT can be any corrective pattern except a Triangle. Wave D of an ET must be a Zigzag based pattern. •Wave B, C and D must not move more than 10% beyond the A-C & B-D channel lines (based on the length of Wave C). •In an ET, Wave C must be less than Wave D by price and Wave C must be more than 50% of Wave D by price. •In an ET, Wave A must move within the A-C channel or pass through it by no more than 10% of the length of Wave B by price. •In an CT, Wave D must be less than Wave C by price and Wave D must be greater than or equal to 50% of Wave C by price. •The intersection of the channel lines must occur beyond the end of a CT, and before the beginning of an ET. •The channel lines must either converge or diverge. They cannot be parallel. •Wave D of a CT must not end such that when retraced 25% by E, E will not reach the price territory of A. •Only one channel line in a CT may be horizontal. Neither channel line of an ET can be horizontal. •The maximum time for Wave D is 4 times Wave C. •Wave E of a CT can either be a CT or a Zigzag family pattern. For an ET, Wave E must be a Zigzag based pattern. •In an ET, Wave E must be greater than Wave D by price and Wave D must be greater or equal to 50% of Wave E by price. •In an ET, either Wave A or B will be the shortest Wave in the pattern. •In a CT, Wave E will be less than Wave D by price and Wave E will be greater than or equal to 25% of Wave D by price. •In a CT, either Wave A or B will be the longest Wave in the pattern. •In a CT, the maximum time for Wave E is 4 times Wave C. •Wave E must end in the price territory of A. •Wave E must not pass through the B-D line, or if it does, by no more than 10% of the length of Wave D. •The maximum number of pattern lengths into the future that the channel lines intersect is 6. Triangle Guidelines: •Wave A is usually a zigzag family pattern. •Wave B is usually a zigzag family pattern. •Wave C is often a zigzag family pattern. •Wave C usually takes more time than any other Wave in the pattern. •Wave D is usually a zigzag family pattern. •Waves B, C and D rarely move outside the B-D line. •Waves A, B, C and E rarely move outside the A-C line. •Wave E is usually a zigzag family pattern or the same type of Triangle as the larger pattern. •Usually at least two Waves travelling in the same direction will relate by about 61.8%. •It is common for two or more adjacent Waves will be related by 61.8%. •In a CT, Wave E normally retraces Wave D by about 70%. •Double and Triple ZigZag Rules: •Double (DZ) and Triple (TZ) Zigzags are similar to Zigzags, and are typically two or three Zigzag patterns strung together with a joining Wave called an x Wave, and are corrective in nature. Doubles are not common, and Triples are rare. Zigzags, Double Zigzags and Triple Zigzags are also known as Zigzag family patterns, or 'Sharp' patterns. Double Zigzags are labeled w-x-y, while Triple Zigzags are labeled w-x-y-xx-z. Both these patterns are included in the list of rules and guidelines below. Only a Double Zigzag is illustrated below. Double and Triple ZigZag Rules: •Wave W must be a Zigzag. •Wave C of W cannot be a failure. •Wave X can be any corrective pattern except an ET. •Wave X must be smaller than Wave W by price. •Wave X must retrace at least 20% of W by price. •The gross price movement of Wave X must be less then 3 times the price movement of Wave W. •Wave X must be no more than 5 times Wave W by time. •Wave Y must be a Zigzag •Wave Y must be greater than or equal to Wave X by price. •Back to back and double failures are not allowed. •Wave Y must be greater than 90% of Wave W by price, and Wave Y must be less than 5 times Wave W by price. •Wave Y must be no more than a factor of 5 times either Wave X or W in price or time. •Wave C of Y cannot be a failure. •Wave XX can be any corrective pattern except an ET. •Wave XX must be smaller than Wave Y by price. •Wave XX must retrace at least 20% of Y. •The gross price movement of Wave XX must be less than 3 times the gross movement of Wave W. •Wave Z must be a Zigzag •Wave Z must be greater than or equal to Wave XX by price. •Wave Z must be less than 5 times Wave Y by price, and must also be less than 5 times Wave W by price. •Wave Z must be no more than a 5 times either Waves XX, Y, X or W in both price and time. •Double and Triple ZigZag Guidelines: •The largest Wave in Wave W is usually less than Wave W by price. •Wave X is usually a Zigzag family pattern. •Wave X is usually less than 70% of Wave W by price. •Wave X will usually retrace at least 30% of Wave W. •Wave X is most likely to be a 38.2% retracement of Wave W. •Wave X is next most likely to be a 50% retracement of Wave W. •Wave X is next most likely to be a 61.8% retracement of Wave W. •The largest Wave in Wave X is usually less than 140% of Wave W by price. •The time taken by Wave X is usually between 61.8% and 161.8% of Wave 1. •Wave Y is next most likely to be equal to 61.8% or 161.8% of W by price. •Expect the time taken by Wave Y to be between 61.8% of Wave W and 161.8% of shortest of Wave W and X. •Wave XX is usually a Zigzag family pattern. •Wave XX is usually less than 70% of Wave Y by price. •Wave XX will usually retrace at least 30% of Wave Y. •Wave XX is most likely to be a 38.2% retracement of Wave Y. •Wave XX is next most likely to be a 50% retracement of Wave Y. •Wave XX is next most likely to be a 61.8% retracement of Wave Y. •The largest Wave within Wave XX is usually less than 140% of Wave Y by price. •Wave Z is most likely to be about equal to Wave Y by price. •Wave Z is next most likely to be about equal to 61.8% or 161.8% of Wave Y. •The largest Wave in Wave Z is usually less than Wave Y by price. Double and Triple Sideways Rules: Double (D3) and Triple (T3) Sideways patterns are similar to Flats, and are typically two or three corrective patterns strung together with a joining Wave, called an x Wave, and are all corrective in nature. Doubles are not common, and Triples are rare. Doubles are labeled w-x-y, while Triples are labeled w-x-y-xx-z. Both these patterns are included in the list of rules and guidelines below. Only a Double 3 is illustrated below. •Wave W may be any corrective pattern except a Triangle, double or triple. •Wave C of W cannot be a failure. •Wave X may be any corrective pattern except a Triangle, double or triple. •The minimum X Wave retracement is 70% of Wave W. •The maximum price distance of Wave X is 150% of both the previous Wave and ensuing Wave. All internal data points are considered. •Although there is no minimum time for Wave X, the maximum time is 10 times the time taken by Wave W. •Wave Y may be any corrective pattern except double, triple or a Triangle in a Triple Zigzag. However, Wave Y cannot be a Zigzag if Wave W is a Zigzag. •Wave Y must be greater than or equal to Wave X by price, except if Wave Y is a Triangle. •Wave C of Y cannot be a failure. •Wave Y must be no more than 5 times either Wave X or W in price and time. •Wave Y has no minimum time constraint. •Wave XX may be any corrective pattern except a Triangle, double or triple. •The minimum Wave XX retracement is 70% of Wave Y. •The maximum Wave XX retracement is 150% of previous Wave and ensuing Wave. All internal data points are considered. •Wave Z may be any corrective pattern except double or triple. However Wave Z cannot be a Zigzag if Y is a Zigzag. •Wave Z is greater than or equal to XX by price. •Wave Z must be no more than 5 times either Waves XX, Y, X or W in price and time. •Back to back and double failures are not allowed. •If Wave Y is greater than Wave W by price, then the maximum Wave Z price movement is twice the price movement of Wave W. Double and Triple Sideways Guidelines: •The largest Wave in Wave W is usually less than 140% of Wave W by price. •Wave X is usually a Zigzag family pattern. •The largest Wave in Wave X is usually less than Wave W by price. •Wave X is usually less than 140% of W by price. •Wave X is usually greater than 95% of Wave W by price. •The most likely retracement for Wave X is 110% of Wave W. •Time for X is generally between 62% of W1 and 1.618 of the time of W1. •If Wave Y is a Triangle, the most likely length of Wave Y is about 61.8% of Wave W. If Wave Y is not a Triangle, the most likely lengths for Wave Y are 100% of Wave W, 161.8% of Wave W and 10% of the length of Wave W beyond the end of Wave W. •The largest Wave in Wave Y is usually less than 140% of Wave W by price. •Wave Y is usually less than twice the longest of Wave W and Wave X in price. •Wave Y is generally between 61.8% of Wave W and 161.8% of Wave W in time. •Wave XX is usually a Zigzag family pattern. •The largest Wave in Wave XX is usually less than Wave Y in price. •Wave XX is usually less than 140% of Wave Y by price. •Wave XX is usually greater than 95% of Y by price. •The most likely retracement for Wave XX is 110% of Wave Y. •If Wave Y is a Triangle, most likely length by price is 61.8% of Wave W. If Wave Y is not a Triangle, then the most likely lengths are 100% of Wave W, 161.8% of Wave W and 10% of length of Wave W beyond the end of Wave W, all by price. •The largest wave in Wave Z is usually less than 140% of Wave Y by price. •Wave Z is usually less than twice the longest of Wave Y and Wave XX.
COINBASE:BTCUSDEducation
by XForceGlobal
44
📉How to stay calm during market crashes?🔋Hi friends! Have you saved your deposit to buy crypto? Markets are falling lower and lower every day. In this idea I will give you some tips on how to open successful trades when the market is bleeding and emotions are taking over. At the crypto market, such massive dumps happen once in 3 years, but the price sometimes falls by 30% and rises by 500-700%. This is called volatility. Crypto market is still quite young, so it is very high here. I think it`s an advantage because it`s give more opportunities to traders and investors to grow their deposit faster in compare to stock or forex markets. But if you don`t know what to do during market crashes and stay calm at any markets i`ll share with you some tips: 📈Follow the trend. First and foremost rule. You think you can reverse the price direction by yourself? Unless you have more than $1 trillion:) Why would you fight the market when it can help you? If you don`t know what is trend, please, check this idea. It helps you to identify it on lower (1m-1h), middle (1h-1d), higher (1d-1M) timeframes. 📣Join the trading community. Talk to different traders (scalpers, swingers), investors. Share ideas, keep an eye on other people's trading ideas. This way you'll faster understand your mistakes, raise your win rate and look at trading from different points of view. The human mind is built so that you calm down when you shares your thoughts. Do it! 💹Use the trading strategy. Open trades only when the strategy tells you to do so. If you don't know what a trading strategy is or how to make one, post in the comments I'll do an update for you. Simply put, you need to: 1. Create filters to help you identify future price movement. 2. Use risk and money management. To earn in trading you don`t need to open a trade using all your depo. 🚩Personally, I use: trend lines, squeeze under them, mark key levels, volume and horizontal volume indicators, track the market manipulation. There are many trading tools - find your own or borrow someone else's and adapt to yourself and your psychology. 👶If you are new to the market and this is your first experience, trade on a virtual account or try to start with 1% of your capital. If you can't make $200 from $100, how can you make $20,000 from $10,000? 🏁The statistics says that only 1% of traders make profit, 9% trade at breakeven and the other 90% lose money. Be the 1%, learn, read, develop and stay calm! Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU. P.S. Personally, I open an entry if the price shows it according to my strategy. Always do your analysis before making a trade.
Education
by Yuriy_Bishko
15
BTC vs stock and investing in difficult timesDifficult times are coming Since march 2020 when pandemic was accounced we saw many bad for economy decisions. There was no doubt that it will have negative impact. At the beginning bad sentiments were "flooded" with printed money as per tradingeconomics we can see money supply in the US increased 4 times between march and april 2020. Until now we can see effects in very high inflation in Europe and both Americas. South America however always had this problem :) The war in the Ukraine will have negative impact for wheat supply to many countries in the Middle East and Africa. Other countries to save wheat supply for themselves will ban export. Ban on the Russian oil will increase prices in Europe even more. Probably in some countries we will see fire on the streets in the next year. When LUNA crashed many people lost 100% of their savings because some invested 100% in one asset. High inflation is pushing people to bad economical decisions. Some people invest in gold, other in BTC or real estate to save money from inflation. This is however creating the bubble. Many people bought houses in the past 2 years because of very cheap loans (0.05 interest rates). With higher interest rates they will be not able to pay loan, many houses will be sold unfinished. In the difficult times the winners will be the people who wait with investment for right moment. In next years we will see a lot of bankruptcy. Watch interest rates in the next months. Expected are further rises in many countries. War in the Ukraine and oil prices have significant role too.
SP:SPXEducation
by UnknownUnicorn29290293
❗Black Swan by stablecoins. Threat or opportunity for traders?Hi friends! If it heppen to one UST is it heppen to another stablecoins? Next trigger for BTC dump can be caused by stablecoins instability. In this idea i`ll show you some facts about it! 🦢Black Swan. The last Black Swan in all financial markets happened in 2020 because of Covid-19. The crypto market fell by 64%. After the bull market, the Fed Reserve started raising the interest rate, BTC fell by 56%. What if all the stabelcoins are not secured by anything? If previously the fall of cryptocurrencies was caused by global cataclysms, now we can expect the first black swan only for the cryptocurrency market. With a EXTREME fear in the market and panic sales of retail traders, BTC could fall to $22k or lower. 📊Stablecoins by Market Capitalization: 1. Tether (USDT) - $83B 2. USD Coin (USDC) - $48.5B 3. Binance USD (BUSD) - $17.1B 4. Dai (DAI) - $6.9B 5. TerraUSD (UST) - $6.9B Total: $169.4B ❗It`s almost 10% of TOTAL Crypto market Capitalization (169.4/1400). 💱We all know what happened to Luna and UST stabelcoin. US Treasury Secretary Janet Yellen pushes for stablecoin regulation by end of year. Even if the LUNA and UST recover to their previous price, a lot of attention will be focused on other stablecoins as well. On the other hand, this is positive for the crypto market and market players, as crypto security will increase. ✅Friends, if you don`t know what to do when BTC fall by 60-75%, check this idea! I made an educational idea for you when BTC was $39k. It describes 3 ways how you can identify the bottom of the market for BTC and Altcoins! Friends, where will Bitcoin bottom price? $20-22k or lower? Or BTC already find the dip and go to renew ATH? Share your ideas in comments! Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU. P.S. Personally, I open an entry if the price shows it according to my strategy. Always do your analysis before making a trade.
Education
by Yuriy_Bishko
10
📊How to use Volume indicator to identify the BOTTOM?...and finally buy the right BTC and ALTs dip!😊 Hi friends! Lots of traders buy crypto at the ATH or close to it in hope to make 10x,100x etc. Is it possible and how to do it more succesfull? In this idea i`ll share with you some methods that can realy help you to: 🔶 identify the bottom of the market 🔶 use the volume indicator in right way 🔶 get crypto at a discount 1. Identify the bottom of the market. Already in several ideas I explain you how you can identify the bottom of the market, and traders shared their ideas in the comments also. We will not stop for a long time around all the methods, you can read about them in this idea and in the comments below it. 💹In this idea I will talk about the fundamental method of how to identify the bottom - liquidation . Liquidation is the process when the exchange takes traders' money to cover losses of a long or short. This can happen if you use leverage in trading and do not use risk and money management. 'Cascades of Liquidations' happen when the price falls without any stops by 30-50%. This is a result of not enough buyers in the market to hold the price and as the price drops, more and more leveraged positions get liquidated - it's like a snowball effect🏂 I've seen this in 2018, seen traders who entered the crypto market in the spring of 2020 and most recently in 2021. 2. Use the volume indicator in right way. Why do I use a volume indicator? It's very simple. This is an indicator that shows where a big players open or close their trades. 🚩If a huge liquidations have happened, someone has sold a lot and someone has bought a lot. Why? Just as DOM and Footprint help to identify whale buying or selling orders, so the volumes show the amount of money traded and help to identify liquidations. Also, it can be used at different timeframes to see whales' willingness to buy or sell at key levels, trend lines and other trading instruments. Volume is a real representation of the number of trades. 3. Get crypto at a discount. If you wanted to buy Bitcoin at 60k, why when it drop by 70% you don't want to buy it? Or altcoin, which is down by 95%? A simple example, when you go to the store you want to buy a car with a discount . If there are two identical Lambos🚙 which cost $250,000 and $100,000, why do you want to buy the one that costs more? Ask yourself this question. This is not financial advice, just a comparison of facts and explanation of traders psychology. ✅As we can see on the chart, the last time after such a massive liquidation in 2020-2021, Bitcoin and Ethereum rose by 1100% and 3400%. For example, Binance Coin (BNB) rose by 6460%, Cardano rose by 11400%. Also, after the last liquidations in 2021, there was a good ALTSEASON, when Bitcoin grew by 100%, and all Altcoins by more than 300%. 🏁My personal advice if it`s happen again: 1. Remember about your risks and money management. 2. Use your strategy and don`t panic. You need to just wait for good entry point. 3. Use VOLUME indicator like an additional tool. This indicator can help you to identify the bottom, but not to do all the work for you. 💻Please write in the comments if you still have the questions about the liquidations or Volume indicator! I`ll try to explain you additional tips 🎇 Press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU. P.S. Personally, I open an entry if the price shows it according to my strategy. Always do your analysis before making a trade.
Education
by Yuriy_Bishko
7
🚩How to identify the bottom and BUY the crypto in time? 3 tips!🌟How to BUY crypto in time and with the possible highest RETURN? The correct answer is during the capitulations. 🎯Capitulation is when even patient and experienced traders start to panic, but this is the opportunity time (Jan 2015, Nov 2018, Mar 2020, May 2021). 🔶How to buy crypto during the capitulations? Use the dollar cost average (DCA) strategy. This strategy allows you to buy crypto by parts without risking all of your capital. 🔶How to use DCA strategy? This strategy helps to average the BUY price. You can only sell at the top and buy at the bottom by accident. In real life, this strategy helps to average the buy price of a crypto. For example, back in 2019, you bought Bitcoin 3 times at $3,000, $4,000, and $5,000. The average purchase price in this case is $4,000. If the price go lower, you would average the price, if it rose, you already bought at a good price. Also, you can BUY at the weekly candle close during the capitulions. It is important to use the equal parts of the capital to buy (1/10, 1/20 etc.). Another simple example is shown on the chart😉 🔶How you can identify a capitulation? 1. Look at the volumes and record liquidations as shown on the chart. The liquidation of 50-100k Bitcoins is the best indicator. 2. Look at the percentage of drop from the highs. Historically, a price drop by 65-80% has been the bottom of the market. 3. Use the indicators that show the bottom of the market. Read this idea about the 🔋Greenwich indicator. It shows both the top and bottom of the market. So when BUY signals (green diamonds) appear, you can use this indicator to buy crypto by parts. 🔶Why does the DCA strategy work? Bitcoin, like U.S. stock markets, is in a long-term Uptrend. After buying Bitcoin in 2017 at its ATH ($18-19k), investors are now still at +100% profit. And as long as this trend is not broken this strategy will work. For example, the U.S. stock market has been in uptrend for over 80-90 years. 💻Please write in the comments if you still have questions about the DCA strategy or how else you can identify the bottom. What methods do you use for that? 🎇 Press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU. P.S. Personally, I open an entry if the price shows it according to my strategy. Always do your analysis before making a trade.
BITSTAMP:BTCUSDEducation
by Yuriy_Bishko
33
Bitcoin: Liquidity and Order blocks!This is an educational post! I have tried to combine the concept of liquidity with that of supply and demand to show you one of the most efficient trade setups in financial markets! You basically have a descending trendline in 30m chart of bitcoin! Price reaches a confluence area in higher time frame analysis (let's not be concerned about that now) then it jumps a bit to create a range! We know range bounds are liquidity nests! So price first grabs the upper range liquidity, breaking the market structure at the same time and hence confirming the long bias! Then it comes down to the demand zone, grabbing the lower range liquidity at the same time and then boom! It goes to the target!
FTX:BTCPERPEducation
by chartmaster1991
🎯BTC: Real Life wedge trading! Tutorial for traders!🌟 The picture of the wedge pattern is beautiful, but you have to understand how to trade in Real Life! In this idea I will try to teach you how to enter the trade and what to look for. The descending wedge is a bullish pattern. On the chart you can see how it works on Bitcoin. Over the past year, it has worked well in 3 out of 3 trades. 🎓What is the wedge? Wedge is the price consolidation in downtrend or uptrend. So if it`s UPTREND, the price making higher highs and higher lows. The whales in this case sell higher and higher. Ascending (uptrend) wedge is bearish pattern. So If it`s downtrend the price making lower highs and lower lows. The big players try to hunt trader stop losses to get the liquidity for their LONG positions. 🚩Let`s start from the May-July 2021 wedge! In addition to the descending wedge, there are several triggers to open a long: 1. false breakout (liquidity collection) of the $30K key level. A lot of stop losses were collected, a lot of traders were liquidated. The whales were happy. Additionally, pay attention to volumes as well as liquidation volumes. 2. squeeze under the upper boundary of the wedge and test it as support. Here you can open a trade during the squeeze under the trendline and after test it as support. It`s better to check at lower timeframe. All this added up to a long two-month consolidation with stops losses hunting and Bitcoin DUMP by 50-55%. Many traders simply lost faith and closed positions at a loss. The price rose by 50-60%, but if you had closed the trade on the next Dump, you would have a profit at least +30-35%. 🚩Next is the Sep 2021 wedge! In this case we didn't see big liquidations, the whales had enough liquidity, and everyone who shorted on this 23% drop became the fuel🔥 for further growth. Additional triggers: 1. a trend change. The price trend changed from a downtrend to a small consolidation and then started to create higher highs and lows. 2. squeezing under the local trend line on lower timeframes. If you switch to the 1 hour timeframe this is clearly visible. 3. test of the global and local trend line as support and growth without pullbacks (strength of the bulls). We close the deal as soon as the target is reached. If you continued to hold the trade for more than 10 days, the profit would be at least +30%. 🚩 Will the fourth wedge break up(4/4)? During this Apr 2021 wedge, we have not seen the huge liquidations yet. Also, we haven't seen bullish strength, squeezes under trend lines or levels. Therefore, we should wait for our entry point and don`t open trades without the confirmation of the trading strategy. I'll share with you my local ideas later. 🌐Globally, the market has been in a $30-67k consolidation for more than 1.5 years. Sooner or later the price will choose the trend and maybe even in the next few weeks. 🔥Trading is the combination of trading tools, using filters and non-standard methods, which I try to explain in my training ideas. Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU. P.S. Personally, I open an entry if the price shows it according to my strategy. Always do your analysis before making a trade.
Education
by Yuriy_Bishko
13
The analysis of the behavior of major player Part 3Today i want to proceed my sharing of my knowlege about the behavior of large players in the market, how to notice them and how to use it. So on this example of BTC we can see the candle that activated those stops of the major players that we talked about in the previous two parts of this tutorial. This candle staying on the circled zone that we talked about last time. Look! It is Amazing. So after this candle we can be sure that the next target is the pump, becouse all stops of the major players it is = BIGGEST BUYS in the market. Have a good mood
Education
by MiriamRapoport
6