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The Madness of the Crowds ✅✅✅ ✅ The Madness of Crowds One way to view the market is as a disorganized crowd of individuals whose sole common purpose is to ascertain the future mood of the economy—or the balance of power between optimists (bulls) and pessimists (bears)—and thereby generate returns from a correct trading decision made today that will pay off in the future. 🎯However, it's important to realize that the crowd is comprised of a variety o individuals, each one prone to competing and conflicting emotions. Optimism and pessimism, hope and fear—all these emotions can exist in one investor at different times or in multiple investors or groups at the same time. In any trading decision, the primary goal is to make sense of this crush of emotion, thereby evaluating the psychology of the market crowd. Understanding Herd Behavior The key to such widespread phenomena lies in the herding nature of the crowd: the way in which a collection of usually calm, rational individuals can be overwhelmed by such emotion when it appears their peers 🎯 The Risks of Following the Crowd The key to enduring success in trading is to develop an individual, independent system that exhibits the positive qualities of studious, non-emotional, rational analysis, and highly disciplined implementation. The choice will depend on the individual trader's unique predilection for charting and technical analysis. If market reality jibes with the tenets of the trader's system, a successful and profitable career is born (at least for the moment). 🎯 So the ideal situation for any trader is that beautiful alignment that occurs when the market crowd and one's chosen system of analysis conspire to create profitability. This is when the public seems to confirm your system of analysis and is likely the very situation where your highest profits will be earned in the short term. Yet this is also the most potentially devastating situation in the medium to long term because the individual trader can be lulled into a false sense of security as their analysis is confirmed. The trader is then subtly and irrevocably sucked into joining the crowd, straying from their individual system and giving increasing credence to the decisions of others. 🎯 Inevitably, there will be a time when the crowd's behavior will diverge from the direction suggested by the trader's analytical system, and this is the precise time at which the trader must put on the brakes and exit his position. This is also the most difficult time to exit a winning position, as it is very easy to second guess the signal that one is receiving, and to hold out for just a little more profitability. As is always the case, straying from one's system may be fruitful for a time, but in the long term, it is always the individual, disciplined, analytical approach that will win out over blind adherence to those around you.
COINBASE:BTCUSDEducation
by AnonimFXRO
Order Types in the Markets💰💰💰🎯 In the financial market the orders are on two categories. ✅ Market Execution orders LONG - BUY SHORT - SELL meaning that you are ok with the price on the certain asset and you would like to short or long it on the other side there is ✅ Pending Orders - meaning you are not ok with the actual price and you would like to buy/sell it later in time I use pending orders when i am out of my trading office so i dont miss trading opportunities Was this valuable, drop a comment !
BINANCE:BTCUSDEducation
by AnonimFXRO
2
EDUCATIONAL POST (FVG - Fair Value Gap)EDUCATIONAL POST: (FVG - Fair value Gap) 📊📈 Let's take some time to explain a trading term I often use in my TA. 🤓 FVG - or Fair Value Gap (= inefficiency, void...) 👉 What they mean by that is an area of the chart where the price moved past in just 1 single candle, meaning the candle before + after haven't touched this area. 👉 This is how such a gap is formed. 👉 This gap frequently works as a magnet for the future price, indicating a CONTINUATION (bullish —> bounce, bearish —> drop) NOTE: this is the strongest on the first touch it does, after that it's power deminishes and price often moves back through it. EXAMPLE: (bullish) price moves up fast and creates a FVG. This area will act as a bounce area for when the price drops back down to this, before continuing higher. I've added a theoretical + $BTC example. (scroll back to see it on the chart) Hope you learned something. 👌 Oli 🤙
Education
by theGOATofCrypto
2
Can Technical Analysis Predict The Future?People who tell you, a trader, not to learn Technical Analysis do so trying to keep you ignorant about the true conditions of the markets, not because the tool flawed. Many of the people fighting it have no idea how it actually works or just can't get their heads around it. The more I use it, the more I study, the more I practice, the easier it becomes. It is not about predicting the future. It is about gaining access to information that can help you obtain, when trading, better results. If you would like to read into the future try Astrology or Numerology but Technical Analysis is for those who want read the markets as they are. Try it! It can be profitable. It can be fun. Namaste.
BITFINEX:BTCUSDEducation
by MasterAnanda
21
Strong Shakeout/StopLoss-Hunt Reveals The Bottom - RSKThis is the pattern that reveals the bottom for the Altcoins (Altcoins vs Bitcoin). We are looking at it on the RSK Infrastructure Framework (RIFBTC) chart but it is present/showing up everywhere. This pattern is what we call a "shakeout" or a stop-loss hunt move. The market breaks down strong below support just to move quickly back above it. This started happening 24-Jan. and 7 days later all loses have been recovered and instead of consolidation/sideways we will see a new uptrend form. Another detail about this pattern is the bullish divergence that always shows up long-term. If you zoomout, you can see the higher low on the MACD and the lower low on RIFBTC. Keep this pattern in mind when looking for new trading opportunities. I really hope it helps. Namaste.
Education
by MasterAnanda
1
What To Focus On As A BeginnerFocusing on winning trades is your setback as a beginner Every individual begins their trading journey with the idea that trading is all about winning trades and making money. Soon after their dreams are shattered when they realise it was not as easy as they had thought it would be. Now as we all know, the road to success to many is long and difficult, and that’s exactly what makes them successful. So why should the road to success in trading be any different? Look at top performing athletes, they trained for years before reaching any kind of success that definitely did not occur overnight. This bring me to my main point where many traders could be failing due to focusing on winning trades rather than the process it takes to become a good trader. Every trader beginning their journey needs to understand that trading the financial markets is no different than a top performing athlete. In order to achieve success, one needs to develop their skills over years. Instead of focusing on winning every single trade, one should be focusing on the process and the experience they are gaining over this time. Studying your mistakes, your losses, your psychological weaknesses, your analysis, and your understanding of the charts, are far more important at this stage than focusing on winning trades. Look at your trading journey like a student attending university, a student will learn over years different topics, where some will seem worthless at the time, but will however develop their skills in the necessary fields to succeed in the future. Every beginner should deeply focus on the process. Winning trades are a by-product of a developed successful strategy which also requires a developed individual. The trader needs to be developed in their psychology above all in order to trust their strategy and apply it correctly without deviating from the plan. Take the time to focus on all aspects of your trading, and let the winning trades come as a result of that in the future. Trading is a marathon, not a sprint, always remember that.
COINBASE:BTCUSDEducation
by opes_trading_group
6
⚠️ Read this if you trade ⚠️The impact of the subconscious and emotions on trading with simple solutions. Why can't we make a profit even though we have a correct analysis of the chart? Why does the price return from where we sell it? Why do all those who enter with a small volume make a profit which is also a small one, but when the same one is entered with a large volume, it becomes a loss? Why do we get scared and sell soon? Why are we so hopeful when we are at loss, but still close our position in the same situation? Maybe these and similar questions have arisen for you in your trading, but where is the problem? Why is it that even though we know everything and predict everything correctly, we still don't make much money? The answer to all these questions lies in the subconscious. As you know, the subconscious is programmed by us, and an important duty of the subconscious is taking the necessary actions when the conscious is not able to, and these actions are taken according to the plan. The ones we give ourselves come into being. The subconscious mind usually appears when we are experiencing emotions (happiness, excitement, fear, anger, sadness, etc.) and takes the necessary actions. For example, when we make a lot of money, we feel happy, and from here on, the decisions are based on emotions, or when we lose and get upset or angry, and from now on, our decisions are still based on emotions. So here is the problem. What is the solution that emotions take the permission to function correctly from us and we can not do the necessary work properly? In order to solve this problem, we must point out the cases that cause emotions to be extremely dominant and decisions to be sent from the subconscious. 1- No entry strategy: Many only listen to the news for trading, which is certainly harmful, there is news for friends who have no entry and exit strategy, and they are the first group to be easily preyed upon by whales. What is the strategy? Strategy means selecting an entry, exit, and stop-loss point based on specific techniques and conditions. This is done before entering and opening the position. The problem is that many of us only think about the entry point and we never know where we are going to sell. We just want to sell whenever we go up a little, or we may even have a price for sale, but we do not place an order for that price, and we want to sell whenever it reaches that price. Rest assured, in the second case, you will never sell at a good profit because the subconscious does not allow it, and a voice in your ear says: it is going up, do not sell! So strategy in one sentence means knowing what I am doing and to know how much I will gain before I enter a share or cryptocurrency and also if I've made a mistake, how much I will lose. So if you do this before buying, you won't have to deal with feelings and you will find the correct and logical points to enter and exit. If you are going to decide what to do after the purchase or when you are at a loss or a profit, be sure that all your decisions are made unconsciously. And you can not have the correct performance and in 90% of cases, your position is closed with a loss.
Education
by MonoCoinSignal
12
understand the #CRYPTO market from the 10% view ditch retail PT2on part two we will discuss how the 10% looks at the markert, and first thing first is understanding market structure from the proper lens. this time around i will save time by only talking about my philosophy to the market vs opposing retail so lets dig in. when approaching market structure one should ask. who why and where is price going . put yourself in the shoes of the market movers and the sharks that makes 90% of the money from public. we have to remember that trading is just essentially a transference of funds form one and to another but it never leaving the inner circle. so market structure should be approached as if i am moving the market where was the last time or area i opened a new idea or placed a trade, rather then trying to find where others are buying at support. now if you are the market mover you will come to understand the importance of paring orders. and how liquidity zones help allow price to flow smoothly. so for example if i am the few thats moving btc and i initially started buying btc around sub 30k areas where would i want to buy again at for the best opportunity cost? 30k or below so what would i do? easy book profits on my longs and start to shift to shorts now on the chart this will look like an accumulation area for retail. now remember for every buyer there must be a seller vice versa so as i book profits on my longs i am also unloading large selling pressure unto the market which will automatically cause some move in price. now because you are the market mover you cant just instantly switch all positions to short or sellout fully of your positions so you have to start stacking shorts around a set price thats good for the 10% . this will look like the highlighted area where it says sell stacking on the picture. now once large funds have about 50% of their ordes filled for thier shorts this is when price starts to fall. while price is falling there are two people in the markets the "dip buyers" filled with hopium and panic sellers that took the other side of your trade. these two players will help you move price as one the dip buyers help your orders get filled as u add on to your position towards the down side, and two the panic sellers help move price down faster by adding more selling pressure. both participants are nothing more then liquidity to you. in this case you cant let price run to fast as you will leave money on the table so what comes after you open your postion and you are now in profit. you partially close out and book profits . this leaves a wick usually resulting in the dip buyers feeling good and the shorters also feeling good as they have made some money riding your wave. the shark in you knows there can be more money made before the next move down so now it is time to allow price to recover while you continue to add onto your original short idea . this will form an area of accumulation and liquidity as retail put sl under this wick or area and limit orders will be placed around this area. so while thought are being gathered around a certain price area you give time for retail to choose a side to lose money on. as price continues to bounce fomo will enter the market bringing in more liquidity at higher prices these fomo buyers will be your liquidity to take the other side of your trade. KNWOING THE MARKETS are filled with ignorance and emotion you understand that the longer price satys up the more money comes into the market which inturn mean more money made on the downside the more hope that comes into the market the more reckless traders become leaving positions open to be liquidated. BOOM you are ready to unload another wave after sell stacking hiddenly during the bounce now you have paired your short term buys with an open candle and you are now short with roughly anohter 10-15% of your allocated risk now in the market. u push price down before buyers can exit and run through the perceived support area which was really liquidity that would be used to book profits or further push price down. after this move retail is stuck in confusion to how their support area was broken, out of their confusion they revenge trade and once again try to buy the dip to recover the lsot funds. this time you play to their hand to bring back some trust and hope to the market so you hedge your shorts for the mean time and now take out the sellers who had their sell stops at the support and allow the "dip buyers " to win this battle. once again creating a wick or area of accumilation where retail will fall for the same time as before due to their ignorance. of course as price is pushing up on the bounce you are trying to pair your odrer now what are we looking for to pair orders? the closest possible price to our original entry or last entry. price moves up to the open of your position and you continue with your movement . with these two moves in you have now taken out shorters and buyers and this cycle can keep happening over and over . now some will ask how can we see this happen next post i will show ypu what to look for. as for now try to take this approach to your charts and see if you can find examples off this order playing out in the market here are my marekt rules and terms so when looking at my post in the past future you can know what every term or symbol mean
COINBASE:BTCUSDEducation
by BIGPOPPA999
You want to trade crypto? You need to read this! Hello dear traders i hope you were not affected by recent drop. About a week ago i advised everyone not to trade this market neither short nor long becuse it's too risky for both sides. So what have should we do? I told you stay aside and wait for global trendline breakout.( i tagg that post below). What to do now? Now we should stay aside as we did. It's so simple and it's easy to do you do nothing UNTIL this trendline is broken. Maybe this is the bottom but we do not buy UNTIL this trendline is broken. In every drop and every midterm correction we only will be looking for clear GLOBAL PATTERNS like a big falling wedge, a global trendline, a big descending channel which price hits its top many times etc. So if you have a clear long term pattern trade it if you don't have it stay aside and watch. DO NOT trade local petterns and short term ones because in most of cases they will give you fake results. When people are trading and loosing money and market makers beat them hard you just watch and wait for a clear longterm pattern breakout. This is how you can survive in this choppy market. If you liked this post push the like button and tell me do you like to know how to exit the market right before a big correction?
Education
by CryptoTitans1
4
Higher timeframes never lie! Look at the monthly timeframe What do you see? Higher timeframes never lie and they're very simple to understand! We see a double top around 60_70K which is a very strong resistance also we see a bearish divergence because as price making higher highs RSI making lower highs also RSI is overbought. There's a support around 18_13K and also 100 monthly EMA is exactly there to support the price in future. These are very simple and obvious. Now you look at the chart and tell me what do you expect from bitcoin?
INDEX:BTCUSDEducation
by CryptoTitans1
5
A Death Cross for Bitcoin?I see many people speaking about "The Death Cross" that's just appearing on the Bitcoin chart. The Cross brings some fear with it, and I can't just understand why, since it's not really a concerning one. But let me explain. A Death Cross is only strong and meaningful as long as Both SMA (50 & 200) are pointing to the downside - both SMA need to be declining. Many Traders do also Check the Volume. If the Volume is Rising with the Cross, its more likely Valid, if the Volume is declining it less likely. Personally, I don't really use the Volume to Confirm. I check the direction of Both SMA. Edit: In my Opinion the Death as well as the Golden-Cross are really really bad Indicators since they're lagging really hard. Don't get fooled! If you like my Content, hit the 👍 and/or comment and make sure to follow. This Analysis is not intended to be investment advice. Always DYOR.
BYBIT:BTCUSD.PEducation
by blauersamt
7
Assess the undervalued and overvalued cryptos | On-chain metricsImagine having a tool that helps one predict whether an asset is undervalued or overvalued. The price to earnings ratio is an incredibly powerful tool that is used for valuing the worth of a stock. If the P/E of a company’s stock is 50, it means that investors are willing to pay $50 for every $1 earnings of the company. However, with crypto, there cannot be a proper P/E ratio, as it is a commodity. A lot of people use the market capitalization to gauge the worth of a cryptocurrency. This is a flawed approach because mcap can be gamed, and is usually very common in the crypto spectrum. A token can be created with a circulating supply of 10 billion and a few coins sold at $1 means the market cap is $10 billion — but the coin could only have a trading volume of $1000. Because of the flaws in the market cap approach, there needed to be some other technique to help traders and investors to accurately assess the health of blockchain networks. Use of on-chain metrics is a great tool to gauge the worth of a crypto project. One of the first widely used, on-chain metrics that was developed for cryptocurrencies was the Network Value to Transaction (NVT) ratio, popularised by CoinMetrics. By comparing the value of the network with the volume of transactions recorded on the blockchain, we can identify when a cryptocurrency is overvalued. When the value of the network is not justified by the volume of transactions, the NVT ratio is relatively high. When considering the transaction volume, if the network value is unusually low then it may suggest that a higher valuation is justified. Two important on-chain metrics to watch are: the number of active addresses and the number of transactions which are two proxies for the demand for (and usage of) a blockchain network. We can examine the length of time an address has not moved the crypto using the on-chain metrics. If a rising number of investors are HODLing, then we can presume that circulating supply is lower, which should increase the price if demand is constant and also points to confidence in the asset’s future performance. Another interesting metric that can be used to gauge the long -term aspect of a token is the amount of value staked to support the network. It is also known as Total Value Locked or TVL, and can be used to deduce whether people support the project for the long-term.
BITSTAMP:BTCUSDEducation
by Mudrex
6
Crypto NotesHi traders! I did not plan to make this post but as Crypto markets are currently falling I will share some of my Crypto notes that have helped me to navigate in Cryptoverse. Side note: This is not the only way how to trade Crypto markets. Sharing just some information. Eventually every trader have it's own methods and beliefs. Being early is a great advantage in Crypto If you want to discover good projects early that have high potential then some work is needed to put into research. Nowadays there are so many projects (not only BTC & ETH) and it may feel sometimes overwhelming. Good way is to focus on some specific sectors - this will help to set some boundaries. Of course these sectors (or new trends) can change as we are dealing with fastly moving technology. If you find something and are able to get in early then it means an entry with low price. When project is successful you will make X multiple gains (you can replace X with any number you like). But research is only one part of the work - trade management is also needed. Of course being early has its own risks - at the beginning there is a lot of uncertainty and not all projects are going to succeed. Trader will have greater earnings potential but also greater risk of failure (compared with mature projects). Everything is in balance. I personally feel quite comfortable being early - that's why I also like to invest into startups. I value high earnings potential more than risk of being wrong. Being early gives me some sort of price protection or margin of safety ( check concept 'Margin of Safety' from book "Intelligent Investor - Benjamin Graham" ). This will allow me to deal with volatile price swings more easily. I guess it's just like my personal trait. If you don't feel that way then it is perfectly fine. As I said earlier, you can be successful with different strategies. Just find out what style suits you best. Scale In & Scale Out As I have longer view with my Crypto holdings I like to scale in with my buying. For me good entry points are after selloffs - as long as I have a belief that general market structure has not changed. I have my core positions that I will plan to hold for years but I also have other positions that I am willing to sell. I try to scale out from those positions when market is rising to lock in some profit. Doing that will allow me to put some money aside and have gunpowder to buy more after selloffs or fund new early stage projects. This takes some practicing because sometimes market rises so nicely that trader feels like there is no point to sell until whole market is down ... It is hard to predict those events and that's why I prefer to scale out. I try to play the long-term game and I don't have to do all my buying or selling with one trade. Liquidity Planning Basically I will ride all the ups and downs (hold strategy) with my core positions but scale out (trading) from other positions. Then I have always some reserve to add more during selloffs or to fund new projects. I try to plan ahead how much reserve money I need and make myself available to as many opportunities as possible. For long time I underestimated Liquidity Planning's importance and that has caused me to sell many positions too early (or when conditions were not most favorable) - simply because I did not led my cash flows. I thought that I just 'flow' and find money when opportunities lie in front of me. Final thoughts about Crypto markets - as Crypto is going more mainstream every year and probably there are some new market participants who have never experienced this kind of selloff then just relax - this is not the first and not the last market selloff. Remember - usually when fear is greatest there are also some good opportunities. People tend to forget that and only focus on risks. If some mistakes were made during previous leg up then now is good time to learn and plan ahead. That's how we evolve as traders and humans :) Thank you and enjoy your trading :)
Education
by Laurentsius
4
Lessons for the year and into 2022Over the last year I have spent a lot of time on @TradingView writing up educational content, I have tried to apply drawings to my charts to express some lessons in simple yet easy to follow and understand walkthroughs. Here's a chronology regardless of your experience and level. Let's start with Psychology - this is the life and soul of the market, if humans where not so predictable then we would have a completely different looking chart. Humans spot patterns - even when they are not there. We try and assume, we get greedy, fearful and often just outright stupid. Entering trades at wrong times, listening to fake guru's and not doing the work ourselves. When you understand the emotional aspect of trading, your already 50% of the way to becoming a successful trader! In this post (click the images for each individual post) - you will see how the basic emotions work at various aspects of the chart. In a more simplistic form I broke the market phases down in relation to the post above, this time using the Simpsons as the best way to let traders relate to such phases; Homer is brilliant! Again - once you understand some of the basic psychology you can start to create a framework around investing, it will help build a plan. In this next post I wrote about the reasons why people get into crypto - the thrill of the ride, the desire to make it. Once you got a feel for what it is your looking to do and you are wanting to play in the crypto sphere - here's a post that will help you on assessing an alt coin, the process of going through your own due diligence rather than listening to a youtube guru. A lot of what you need to know when searching for the next big thing, is already written in the business itself - this will include everything from the founders, the plan, money raised and so on. Ok so let's step over to some of the technical aspects of trading; Here's a post on the simple trendline - for you experienced traders jump this and the next Moving average post. From trendlines to Moving Averages; These kinds of tools coupled with some basic off the shelf indicators will get you going on your your journey - but you have to remember over 70% of retail traders lose money. There's even an industry quote that states 90% of new traders lose 90% of their account in 90 days. When everyone is using the same Moving averages, MACD and RSI - all it does is lends itself to the type of emotional analysis mentioned in the psychology section. So trade carefully. ALWAYS deploy proper risk management and do your own due diligence. Here's the basic on using the MACD if you do want to use it along with the 50 and 200 Moving Averages ;-) All new traders want to buy the dip! But how; well here's a little advice on that too. This is where it get's interesting; Going back over 100 years there was a cluster of hyper intelligent traders, these techniques are still widely used today and just as relevant in crypto as they where for commodities and stocks when they where first introduced. Here's the introduction; Personally I feel these guys where not technical analysts but emotional analysts - they understood various aspects of why the charts do what they do, why the human mindset drives the target levels, the patterns are created and so on. From here we can cover the technical viewpoint; Here is an intro to Dow theory... Elliott waves; And even Wyckoff; It was this post that many of you know me for - this was the method used in March to call the incoming top for Bitcoins first major move down. However, the greatest tool of all for doing any kind of Technical Analysis is likely to be Fibonacci; A very old technique and amazing to see the levels get tagged each step of the way, this can be applied to various other strategies and techniques. The whole crypto space is filled with rubbish advice, scams and people claiming to make money. The truth is, like every other trading instrument - it's a dog eat dog world and you need to be able to take care of yourself. I wrote this article explaining why common sense is not that common anymore - logic seems to go out of the window when it comes to crypto. So please keep a level head. Life ain't linear - Yes this is a drawing; took AGES!!! I've tried to cover as much useful info for the @TradingView community as possible throughout the year. Here's another couple of posts that you might find interesting; Do you know what is going on, inside the candle? Chart patterns? Even covered the art of the Pivot Point. What don't you know about dark pools? Or the difference in Volume profiles? Or even if your interested in making your own indicators? And to finish with on the technical side- Here's a couple of good books to get you going into 2022! If you haven't followed me throughout the year and seeing this for the first time - here's every swing & supporting logic for the Bitcoin move throughout the year. And to finish with NFT's and the METAVERSE. and this one; Hope you have had a great 2021! 2022 will be even better! Have a great NEW YEAR's eve and see you on the other side!!! Feel free to give me a follow here and comments always welcome! Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
BITSTAMP:ETHUSDEducation
by Mayfair_Ventures
22
HOW NOT TO LOSS OUR DIGITAL ASSETS PART ONEThis is a tutorial post and is more suitable for investors and we are not talking about short-term traders. Friends, the crypto market is not like the Forex market and the stock market. You have to work hard to keep digital assets in this market because it is a wild market. Do not compare this market with other markets because this market is very volatile and shallow. There are big players in this market. In this market, fluctuations of 30% are normal. The crypto market gives you Fiat money, but it takes away your digital assets, and if you do not manage your portfolio, you lose your bitcoins.If you measure your assets based on bitcoins, with the manipulations you do, with the BUY in top and sales in bottom, your bitcoins will be at least halved, maybe $ 5X profit, but in the end you see your BTC are halved and you no longer know what to do. BTC never gives you the opportunity to buy in the right place. It breaks the support you are looking for or it does not reach you and leaves you and you can not buy it.Try to buy bitcoin by accumulation and distribution method, select the appropriate range to buy and enter in several steps, and do not wait for the top to sell and sell in several steps. Technical and fundamental analysis are good, but the most important part of investing is capital management, portfolio management and emotion management. Try to understand the nature of this market and be patient. Patience is very important in this market. In the next post, I will provide you with a suitable portfolio management method. I hope it is useful for you
Education
by Crypto_Scorpio
2
Futures Trading & Terminology ExplainedTrading futures is not for beginners and should only be attempted by experienced traders with a strong understanding of the market as a whole and especially a strong understanding of Risk Management & Trading Psychology. Below I have explained some of the Risks involved in Trading Futures: ------------------------- Liquidation When liquidation occurs your position is forcibly closed due to not having sufficient balance to keep your borrowed positions afloat. When trading futures on high leverage, your losses can quickly reach double digit percentages and if they exceed the remaining balance in your account you can be liquidated. ------------------------- Leverage Leverage, or to be leverage refers to the act of borrowing money off the exchange to trade. When a trader has insufficient balances to cover their leveraged position left in the account a liquidation call can occur. Keep track of your margin ratio and keep it low to prevent liquidations, and use risk management techniques. ------------------------- Volatility Market volatility can be high in emerging markets, and many traders love volatility for its big swings to profit, but in futures trading considering losses are potentially heightened by leverage volatility can become a dangerous thing to a trader. In volatile markets market stop losses can often trigger much further than the triggered price adding to losses, or even resulting in liquidation. ------------------------- Stop Hunting Stop hunting occurs when large entities such as corporations, or “Whales” purposefully target the stop loss orders of traders, knowing that at these areas when a large amount of orders is triggered a contrarian position can be acquired by these entities by buying or selling into a large stop trigger event, by doing this they can easily buy or sell a large amount of an asset when also having very little affect on the price in the short term. ------------------------- Exchange Downtime During extreme market movements sometimes exchanges can crash and traders are unable to login, close or open positions on the exchange, Liquidation events, Market Crashes, Manipulation, Volatility, Stop Hunting may all come into play when Exchange Downtime occurs and it is a risky endeavor to be positioned in borrowed money when a exchange is offline. ------------------------- Market Crashes Market Crashes, Black Swan Events etc. can occur frequently in emerging markets, infrequently in traditional markets. During Market Crashes huge cascades of liquidations can occur taking out over leveraged long traders. ------------------------- Manipulation Stop Hunting is also a form of Market Manipulation. Sometimes vested interests work together to hold down the price of an asset or push up the price to trigger orders, and shake out retail players. ------------------------- Overtrading Due to the heightened losses applicable from borrowed money, overtrading on futures/leverage can quickly wipe out your balance, it is key that you understand how to size your trades correctly as well as managing your risk and mental state to avoid this occurring.
COINBASE:BTCUSDEducation
by Worth_The_Ri5k
Replaying Trade Setups - Liquidity Grab Reversal - Trading ToolsHaving the right Trading Tools as part of your Technical Analysis setup can give you the edge. When completing your Technical Analysis its good to know where high volume liquidity areas are. This script automatically shows you where these unrecovered zones are. This allows you as a trader to forecast Take Profits, closing your trade or when a reversal might occur. This video shows that once the high volume liquidity zone was recovered price reversed. This could have assisted your Technical Analysis if you where in a short to close your trade / Take Profits. This could have assisted your Technical Analysis to place a long once the liquidity had been recovered. Trade Safe.
Education
by Frien_dd-DisDev
15
Bitcoin's Market Cycle Explained Through Elliott WavesThis is an educational post on Elliott Impulse Wave structures, and how the theory can be applied to Bitcoin's chart, in order for us to identify the overall market trend. Disclaimer: This is not investment advice. This is for educational and entertainment purposes only. I am not responsible for the profits or loss generated from your investments. Trade and invest at your own risk. Basic Elliott Wave Structure - 80% of the time, an Elliott Impulse Wave would have a structure as the diagram demonstrated above. - After the first impulse wave, we have wave 2, which is a short term corrective wave, play out. - Most of the time, the second wave demonstrates a zig zag pattern, in which we can count ABC waves. - When the second wave is a zigzag, there's a high probability that the fourth wave demonstrates a complex correction, such as a double three (WXY), or a triple three (WXYXZ). - Also, when the second wave is a zig zag pattern, there's a high probability that the length of the third wave is 1.618x of the first wave's length. - In this case, there's also a high probability that the length of the fifth wave is equal to that of the first wave. - Keep in mind that these are all probabilities. There are no rules set in stone that state that waves have to move a certain way, in a certain length, but they tend to demonstrate this structure under certain conditions Bitcoin's Elliott Wave Structure - However, as you can notice from Bitcoin's Elliott Wave count chart above, Bitcoin's second wave did not demonstrate a zig zag pattern. - Instead, Bitcoin demonstrated a triple three (WXYXZ) leading to a sharp final drop caused by the Covid outbreak. - When the second wave demonstrates a triple three pattern, there's a high probability that the fourth wave demonstrates a zig zag pattern. - Also, when the second wave is a complex correction, there's a high probability that the third wave's length is 2.618x of the first wave's length. - Additionally, when the second wave is a complex correction, there's a high probability that the final wave's length is 1.618x of the first wave's length. Bitcoin Weekly Chart Elliott Wave Analysis - Taking into consideration the Elliott Wave structures explained above, we can now see that Bitcoin's trend can be explained by the second diagram. - We saw a complex correction (triple three, WXYXZ) pattern on Bitcoin's second wave. - We're currently completing wave 4, which seems to be a running flat pattern (ABC). - While this isn't exactly a zig zag pattern, it's a variation of the zig zag pattern, and part of the larger concept of simple corrections. - For a more in-depth explanation on this corrective trend for the short term, make sure to check out my previous analysis by clicking the chart below: Revealing My Secret Method: Technical Symmetry Analysis Summary I believe that there's an extremely high probability that Bitcoin's bull run isn't over. While December's price action may be rather disappointing, as we're in the process of completing the final corrective wave within a bigger impulse trend, we could expect a parabolic rally as we move towards Q1 of 2022. Using Elliott Waves isn't about accurately predicting the exact price and period of an asset's price action. While a lot of people try to correct each other on "wrong counts", unless the general rules are kept, there really isn't a strictly correct way or incorrect way of using this theory as a tool. In my opinion, Elliott Waves are best used on longer time frames, to identify the overall trend, and which point of the market cycle we are at.
COINBASE:BTCUSDEducation
by Michael_Wang_Official
16