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Cryptotrading

⚡️ Crypto Insights ⚡️ #2 - Altcoin CyclesIn this visual we can see an orange graph overlaid onto the BTC price chart for the last peak back in April. This orange graph represents the collective market cap for all crypto excluding BTC. We can see that the price of altcoins lag behind the price of BTC and actually top around around 3 weeks after the peak. If you go back and look at the ATH at the end of 2017 you will see a very similar pattern. Altcoins tend to lag a few weeks behind BTC and, therefore, peak after BTC highs also. If you are an investor, this is a key sign to watch out for and if you have made significant gains will give you a strategic exit.
COINBASE:BTCUSDEducation
by Flow_Capital
Ultimate Short Term Investment Methodology Hello, everyone! As I can see, you like my series of articles about different coin’s trading plans. Today I’m glad to introduce the short methodology about how to choose the coins for short term investment. On the term “short term investing” I mean the trade with the duration from 1 to 5 months with the potential profit 3 to 6X from current price. Let’s go. First of all you need to know that for short term investing you do not need to believe in project idea, just a big hype should be anticipated. 1 PRODUCT The product is not the key point of my methodology. The best product is the blockchain because it is fundamental project, which can develop quickly in the future. Hype projects such as DeFi and NFTs are also allowed for our purpose. You should just avoid the scams and memecoins. Good examples: DOT, NEO, FLM, ATOM, ADA Bad examples: DOGE, SHIB, SAFEMOON, PRIZM 2 TEAM For our aim this is the least important point. You can just check if the famous and successful people are creators of this project. It is an additional mark for the coin. 3 SOCIAL MEDIA Check if the Twitter account is active or not, activity is high before the pump. The famous investor and other persons as the subscribers also is a good sign. Good and bad example see on the pic below.
Education
by Skyrexio
1
Algorithmic Trading and it's Pros and ConsAlgorithmic Trading is the activity of bots to perform buy and sell actions on an exchange. These bots are scripts created by traders to eliminate manual trading. It's all rule-based trading. A trader codes the indicators, moving averages, and various other conditions for the buy's and sell's to happen. Stop losses and take profits are coded and so are dynamic buys and sell conditions which makes algorithmic trading even more versatile. Pros Speedy executions make it easy to capture quick price movements as soon as they occur. There is no risk of any human error during trading. Execution of large volumes of trade in a short period of time. Ability to backtest historical data to train the algorithm accordingly. Investment can be diversified using multiple trading scripts. Cons Technology Dependency which means if the algorithmic trading platform is not reliable, there could be a possible loss of capital in the event of disruptions. Need to know how to code or understand the concepts of trading, indicators, etc. Need of high-end resources to create, backtest and run trading scripts. How many of us make use of Algorithms to trade and what are your favourite trading strategies? Share in the comment box below For more Educational content follow us. Happy Trading
Education
by Tuned_Official
2
Clean S/R Flip of Previous Range Highs - Crypto BullishWatching Total 2 closely for alts to continue further upside. Looking for a clean S/R flip of the previous range highs. Currently Looking Good!, forming a nice symmetrical triangle as well. We need to be cautious of a fake out to downside, but mainly looking for the apex of the triangle to hold to confirm that bulls are in control for a break to the upside. If we can break out on this alt coins will continue much high upside! 4 hour chart Below - Looks real clean on this. I think alts are getting ready to go again when/if this breaks to the upside. Let me know your thoughts in the comments below! #bitcoin #eth #420Investments
CRYPTOCAP:TOTAL2Education
by Moonseekers
Barrelin 2.0 - Without Rules There Is Chaos!I am now about 4 weeks into sharing my #Barrelin pattern and associated trading strategy mostly on Twitter. In that time I have developed more regimented rules in hopes of automating the hunting if not the trades themselves. Here is the strategy as it stands today: ————- Entry 4hr close above 75% on RSI (14) Continuation Hold EMA (8) on 4hr close OR 1D close above 75% on RSI (14) (aka ‘Handoff to 1D’) AND Hold EMA (8) on 1D close OR 1W close above 75% on RSI (14) (aka ‘Handoff to 1W’) AND Hold EMA (8) on 1W close OR 1M close above 75% on RSI (14) (aka ‘Handoff to 1M’) AND Hold EMA (8) on 1M close Exit Close below EMA (8) on current timeframe that is #Barrelin ——— These handoffs are ideal but I am also starting to see, especially in stocks, the 4hr time frame is not only awkward with the limited trading but there are entries all the time on the higher timeframes without handoffs. The lower timeframes give an idea of momentum and personal preference can be used what timeframe to enter. This brings context to if you are “late” or not. I have posted over 650 tweets in those 4 weeks so searching through #Barrelin will help give a better idea of the ridiculous gains with it. Obviously there are fails and losers as well. I try to post these as well in order to see where the strategy can grow and evolve. The biggest evolution I am currently working on is a trailing take profit with a re-entry. Not sure how hard that part will be to automate but might as well fine tune the idea as much as possible and see what comes of it. Just with the shear volume of crypto and stocks I am following I have narrowed things down to just BTC pairs on Binance for crypto and no longer monitoring timeframes below the 4hr. It is personally impossible to still have any sort of life at that level. As for stocks I have been transformed into a fanboy!!! I can’t believe it. The gains seem to be more consistent and much more explosive - at least in the current atmosphere. There is still crypto popping off but I recommend crypto lovers to give my timeline a visit to see the crazy gains. I am loving the engagement with me and my strategy and I feel it is helping people which os my ultimate goal. I look forward to what the next 4 weeks brings as I try to scale this. Thanks for reading all the way through. Time is precious and I appreciate you investing some of your time here.
Education
by BarrelinChad
BTC Consolidation... Then off to the moon! Bitcoin is consolidating at the same price range as it did back in January. Once we broke that STRONG Resistance, it flipped to Support while BTC Ranged up. Now that same critical level is back to being a Resistance Area. The longer a coin/token consolidates, the stronger the Breakout will be. Think of it as a wall, and the more times we hit it in a short period, the more likely it is to break. Right now, Bitcoin is coiling up, ready to strike. The bulls stepped in with force and held the line $29,500. If you are newer to crypto and just got into the market this year, then you've only experienced up, and this is your first significant drop. You won't ever forget this, I'm sure of it. Take the lessons presented during these events and forge them into your psyche as they will continue to benefit you over and over the longer, you stay in this market. Remember, the market must cause the most amount of people the maximum amount of pain. When you invest and pull a 2-3X, take your initial $ out of the position. Always cover your ass and manage your risk. For now, we stay range-bound from $30k-$42k. We are in no way out of the woods just yet, but we dodged a massive nuke in the market. Depending on what your strategy is, continue to DCA into BTC and strong adults. It's not about timing the market; it's about TIME IN THE MARKET.
INDEX:BTCUSDEducation
by PlanDeFi
Difference between fast & slow moving RSI |Use in crypto tradingQuick glance: In our last tutorial analysis, we discussed RSI Divergences. In this tutorial, we discuss the difference between a fast and slow moving RSI and how to effectively use this in crypto-trading. First let us understand what is meant by "lookback" period? Lookback is the period under consideration. For example, typically RSI is calculated on a 14-period consideration. 2-period lookback is highly volatile and a 20-period lookback RSI would be smoother than a 14-lookback RSI. 2-RSI is a fast moving RSI and 20-RSI is a slow moving RSI. Lookback period and timeframe are totally different. In both these charts, we have used a 1-day timeframe. How to use fast and slow moving RSI in trading cryptos Using fast and slow moving RSI we can place aggressive low risk trades. The key to achieving this is by determining the predominant market trend. In both the charts, we have used the 200 day - SMA to determine the trend. Price of the underlying > 200day SMA == Predominantly Bullish trend Price of the underlying < 200day SMA == Predominantly Bearish trend Buy when: Price > 200-SMA 2-RSI < 5 Sell when: Price < 200-SMA 2-RSI > 95 Please note: One of the most best ways to catch the trades on fast moving RSI could be using algo-trading. It would ensure that accurate signals are not missed! ------------------------------------------------------------------------------------------------------------------------------------------------------------------- Any feedback and suggestions would help in further improving the analysis! If you find the analysis useful, please like and share our ideas with the community. Keep supporting :) - Mudrex
BITSTAMP:BTCUSDEducation
by Mudrex
9
Trends. Correction of trends. Sure reversals and deception.Read and watch carefully. Learn to think. Opportunities do not turn into a manic-depressive syndrome due to your greed, misunderstanding of work and processes, both local and global. Shown in the graph for comparison. Today's situation is 19 05 21 ("Creativity 19") versus 13 03 21 ("Creativity 13") a similar situation in the past. Your intelligence in the right direction can make you rich if you think for yourself and control your emotions. 1) "Deceptions" in the growing trend of 2017. Playing with the psychology of desires and expectations. Simple psychology. March 2017 july 2017 september 2017 I would like to draw attention to how the expectation and disappointment of the main market participants are used here for "driving a round dance of greed". 2) "Faith that cannot be killed". Situation after the peak of 2020. 17-12-17 "Revolution". 17 12 2019 06 03 2020 3) Dump. Important decision. Manipulation before a scheduled dump. Overdid it .... 14 11 2018 16 12 2018 An "unexpected mess" with .... the main trend. Slow, subtle fix. 4) Dump before BTC halving 13 03 2020 16 03 2020 Start 2 under the stage "Crown" (CrownCode6) Closing sectors (13/3/22) Using the situation In such a situation, TA and fortune-telling (inferences due to the data of the old chart history + news background) do not matter. It is simply the desire of a very small group of players at work. How to counter and use it? Always have your own plan for different outcomes of trading situations, more likely and less. Understand what risk management is and use it in practice. Always protect your profits (the greed of the majority of those who give away does not allow this, it is used). Rise / fall. Your trading system should work in different directions. Understand the "mood of the crowd", not be among them. No emotion. Cold calculation. Projection of the above on cash earnings: 1) If you are correct the amount grows in astronomical progression. Gives new potential "For other things" 2) If you are wrong, it does not decrease significantly. Provides new potential "for development in this speculative hobby." 5) Dump before BTC halving. The trading situation is large scale. 13 03 2020 16 03 2020 "The girl did her best" ..... 6) Situation 19 05 21. The first "sabotage". 19 05 2021 2021 7) This situation is on a larger scale. 19 05 2021 2021 For those who know how to think 8) " Green Swan" . 4-6 06 2021 9) COP26. 1 11 2021 - 12 11 2021 First SHAH, then MAT.
BITFINEX:BTCUSDEducation
by SpartaBTC
18
BTCUSD - 1dIf you notice that in the previous Bitcoin crash, there was a move during which the bearish move did not go above the previous candlestick, in other words, no previous candlestick broke until a long shadow candle (pin bar) was formed and Then a powerful ascending candlestick broke its previous candlestick and then an ascending movement was formed ... such movements are called micro-channel in price action ... and as you can see, a micro-channel is also formed in this fall. And we must wait for the failure of this micro-channel ...
BITFINEX:BTCUSDEducation
by mohammad_gunner
4
ETCUSDT looks healthy. Let's do pyramid profiting What is pyramid profiting ? When we add to our existing profitable positions, while managing risk properly, that's the way to pyramid profiting. Pyramid profiting is done when we see a healthy trend be it bullish or bearish. While bullish, we add to our existing longs, and vice versa for bearish. Basically, we are taking advantage of trends by adding to our position size with each wave of that trend. I see a chance to pyramid profit on ETCUSDT on 1H chart. If you see, ETC has shown good upward movement recently and achieved an ATH at $179, after which it declined a bit and seems to make another run upwards. Opportunities like these, are good for pyramid profiting, when there is a chance of a strong continued trend. Money Flow Index looks to move up, and if good volume emerges it could see another leg up breaking psychological level of $200 and beyond. Traders can open a long position, or buy with some percentage of their portfolios, and add to their positions when it reaches defined targets. SL can be used accordingly. Always do your own research. For more ideas like these follow us. Visit Tuned to create strategies with pyramid profiting. Happy Trading
Education
by Tuned_Official
1
Big Alert :- Stay away from PnD Low Volume CoinsHi CryptoPatel Family! This is a Informational/Educational post on one of Trading strategy PnD( Pump and Dump). Basically in other words we can correlate it with another word SCAM, we should try to always avoid these kind of strategy. By following this we can end up with major loss. Always remember there is NO shortcut to SUCESS. First LEARN then remove L. Pump and Dump is nothing just Low volume/Penny/small cap coins in which retails investor have higher participation, operated and execution by very well with very well Plannings. We are attaching the same example with a recent P&D of IDEX coin. Hope you guys follow my advice by keeping yourself away from these kind of Pump and Dump Strategy. Always Remember, THERE IS NO SHORTCUT TO SUCESS. With Love, CryptoPatel.
IEducation
by CryptoPatel
39
How does volume REALLY works?Volume is one of those indicators that remain as part of the standard palette of essential indicators (if there is such a thing), and yet, from intermediaries, brokers and exchanges, they teach you how to use it incorrectly. . Ultimately, as with most misconceptions, it is perpetuated by group mentality and dogma, and makes traders who use them fail. However, it is logical, these entities are not traders, they are programmers and financial agents who sell tools, and therefore their knowledge is limited to a logic that may or may not be the one that the market follows. So how is volume actually used and how can a trader take advantage of it? We are told that the more volume, the more likely a price movement is to occur. Some limit themselves to saying that when volume appears in a downtrend, it means that it will change, since the price has fallen to an interesting level for buyers and this new demand will raise the price. Others directly link more volume with more force in the direction of the trend. From my point of view both are wrong, The only thing that indicates the volume is the probability that there is a change in volatility. Let me explain: Suppose that in a port they are selling fish in several stalls, and there are 10 sellers and 10 buyers. In this situation, the price will be balanced, since there is one buyer per seller, neither the sellers are motivated to lower the price nor the buyers to offer higher prices. for what? if everyone can already buy their piece and go home. If the situation were that there would be 8 buyers and 2 sellers, then the price would not stop rising; The 8 people who want fish could only get it from 2 people, and therefore, they would offer to buy it at a higher price so that one of the two sellers can decide and sell it to one of them. However, here is the first problem: in trading, the volume does not tell us how many buyers and sellers there are, it only tells us the total amount. If I don't know how many of each there are, how am I going to be able to use that information to know where the price is going to go? If in that scenario where there are 2 sellers and 8 buyers, there are instead 20 sellers and 80 buyers, would the situation change anything? There would still be a ratio of 1 to 4, and therefore the price would continue to rise, since in essence, there would still be 4 people wanting to buy for every person who wants to sell. The same happens if there are 200 or 20,000 sellers, while in return there are respectively 800 and 80,000 buyers. What marks the variations in the price are not the people, it is the PROPORTION between the type of participation of those people. The only thing that could be used as a price prediction is the knowledge of that proportion, but in volume it does not show it. That said, one might think that the more volume, the more volatility there is, and, for example, it could be used to buy or sell volatility in options contracts or directly by making a "grid" with other financial products, but from my point of view it is precisely otherwise: What makes the price move is the breakdown of that harmony between buyers and sellers, regardless of the number of each of them. Following the previous example, suppose there are two markets in the port. In one of them there are 100 people and in the other 10, and we do not know who buys or who sells in each of them. It happens that a person enters each of the markets and we do not know if he wants to buy or sell. In principle, we could not say that these new people will raise or lower the price, but if we look at it from a mathematical point of view, in the first market with 10 people, one person represents an increase of 10% of the participants (1 / 10 * 100) but in the market of 100 people, it is only 1% (1/100 * 100). This means that in the first market the price is more likely to change, since the moment this new person buys or sells, it would generate a 10% disproportion between supply and demand, and yet in the other market , it would only be 1%. The percentage that represents a supposed new participant in the market tells us if greater volatility can occur.
Education
by jonfuentesX
5
XLM / USD + 600% Symmetrical triangle. On this coin, in a secondary trend that has formed an upward channel with an impressive step of more than 100%, a symmetrical triangle is formed near its base of the trendline. The price is clamped. Let me remind you that the "radiant cryptocurrency" made exactly + 600% from the breakout of the resistance level of 0.08572 to 0.59. These are not random numbers. The support level that is currently held is the 0.4 zone. There will be a denouement in the near future. Think about what action is causing the formation of such a pattern on the chart. This will give you an understanding of the ongoing processes of "interaction" and possibly with the correct application and profit. For more clarity of two of the processes taking place in the market now, see my old training / work ideas attached below this idea, which by the way I did on the example of the same XLM coin: 1) "Big secret" 2) XLM / USD Secondary Trend Financial markets are a psychological game of manipulating people's behavior with the help of the weak link of the bulk of people, that is, money (a resource for the embodiment of material desires), the final result is to achieve the required goal through the embodiment / non-embodiment of the desires of controlled people.
Education
by SpartaBTC
13
LTC / BTC Positional trading in the channel. Working on a coinI made an addition to the previous trading idea of ​​working / learning on this instrument as the price broke through the support of the inner channel and the downtrend developed. Entry # 2 into a short position after breaking the support of the inner channel was confirmed. Trading with the trend. I have shown potential reversal areas in an existing trend on the chart. The ideal long entry point would be a breakout or pullback after a downtrend line breakout. Please note that there is 1 month on the chart. The reversal will be more clearly visible on the weekly timeframe. I have shown a monthly chart so that it contains the entire trading history and shows the essence of the work. ______________________________ I chose the LTC / BTC pair as an example for positional trading. This coin works perfectly technically. To Bitcoin , the coin is held in a horizontal channel from the very beginning of trading. I think you understand that this is not an accident. In the crypto market of several thousand scam coins there are several such technical highly liquid reliable coins. Litecoin is one of them. It is the impressive profit for those who work in large sums. The ideal ratio of profit and risk. Clear trade. It is easy to predict further price movements. Positional trading is suitable for those who have already traded an impressive depot and are already tired of staring at the monitor and burning their time, spoiling their eyesight. For those who no longer get high from the excitement of management and so on. Because a large depot can in most cases be dispersed only by such methods. A person must have iron patience and an understanding of the market cycles. Because profits need to wait a long time. As you can see from the graph, for example, only one trend can last up to a year. Positional trading is the work on the trend on a long-term basis, on charts covering a large time scale. For its implementation, fundamental and technical analysis is often used. Position trading is suitable for all types of markets: cryptocurrencies, stocks, goods, Forex. In other words, position trading refers to a relatively long-term holding of a position in the direction of a global trend. Thus, position trading is an independent style, significantly different from others. Market participants can use this approach to hold short-term and long-term positions. Maintaining a position in the trend, and not work on small weekly fluctuations. This is the main difference from swing, which involves working on the basis of market cycles of several days. In positional trading, you can hold a trade for months or even a year or more (Dow Jones index), it all depends on the trend. Coins for positional trading are selected very carefully, they must be reliable, be closer to TOP or be this top as an example of Litecoin. There should be a real development of the project in the long term, with a strong team that really does something, and not only has a promise legend. It is very important that the coin you choose for positional trading be highly liquid. You can work (or rather need) as in long and short. In any direction the price you earn. If you are not working in short, then most of the position is HOLD on a WALLET! In such a trade where transactions are conducted 1-2 times a year, it makes no sense to risk a huge amount and keep coins on the exchange. Even if you are doing risk diversification through several liquid exchanges. Only the large time frame is important, we do not pay attention to small price fluctuations. The purchase / sale of an asset is made only upon confirmation of a change in trend. No hai and loy! Minimum prices and maximums will be left for hamsters. ______________________________ Position Trading Rules: 1) A signal to enter a position is the beginning of a trend on a large timeframe (with a timeframe of 1 day or 1 week). 2) Exit from the transaction is carried out only if there are sufficient grounds for the end of the trend (trend change). 3) No lows and highs of the price when trading! Let's leave this occupation to stupid hamsters! ______________________________ The advantages of positional trading. 1) Does not take into account small price changes, that is, does not require constant monitoring of the situation. 2) There is no need to be near the computer all the time. In positional strategy, the most important thing is a deep and thorough analysis, on the basis of which a further decision is made. 3) An open position simply needs to be monitored if there is a situation that can change the position or price. Positional trading strategy is an analysis of daily, weekly and monthly timeframes; holding an open position for at least a few days to several months. In simple terms, positional trading is a meaningful and balanced entry into a transaction based on holding a position in a trend. _______________________________ The disadvantages of positional trading. 1) a long expectation of results that can actually be measured only after months or years; 2) high responsibility for each forecast and analysis, since it can take many days and weeks to hold the wrong position; 3) slow progress in trading (holding positions is good if the trader already has experience, but you won’t be able to gain it quickly by opening deals once a year); 4) the need for significant investment (you can get a tangible income from position trading only if you have a decent amount of money in the account). As a result, holding a position in certain cases is a significant advantage for an experienced trader, but fatal for beginner speculators.
Education
by SpartaBTC
6
How to chart Premium/Discount to NAV for BTC Closed-end FundsThis is very different from my usual analyses, but I still hope you enjoy! This chart calculates the premium or discount you are paying/receiving when trading GBTC . If you don't understand how such a thing can happen I will explain at the end! For now I will explain how I created such a chart and how you can do it yourself! This can be applied to other bitcoin Trust/Fund. _________________________________________________________________________________________________________________________________________________________________ How it's done The goal is to get the premium or discount (P/D), For this example we will look at GBTC : 1. To do that we need to divide the price per share by what the share is really worth (in our case the value in bitcoin of the share). This will give us the ratio of the price vs its value. Price per share / Net asset value per share 2. We get the value per share by multiplying how many BTC we get per share by the Bitcoin price. Net asset value per share = BTCUSD*0.00094680 <---- This value can be found on the Fund website 3. We substract 1 out of the ratio to get the value of the (P/D). (P/D) = (Price per share / Net asset value per share)-1 4. To chart this we go to enter a symbol and enter : GBTC /(BTCUSD*0.00094680)-1 Like I said this can be applied to other BTC fund. Say you want it for QBTC: QBTC.U/(BTCUSD*0.00112383)-1 Extra Notes: -BTC per share values change so verify before using mine you could be mislead -I suggest using a line chart, but you can experiment! ________________________________________________________________________________________________________________________________________________________________ How to interpret 1. If the value on the chart >0 the fund is trading at a premium and for values <0 it's trading at a discount. 2. Value are in decimal so if you see a value of -0. 05 the fund is trading at a discount of 5% 3. Values will tend to normalize around the annual fee for the fund(ex: GBTC -> -0.02). 4. After market values will be based on the closing price of the fund, but will continue to fluctuate since Bitcoin is 24H. Wait for the market to be open to get real time premium/discount _______________________________________________________________________________________________________________________________________________________________ How does this happen? Often when we see a premium or discount we can generally blame it on 3 key factors: Supply and demand , Management team and expectation. While pretty self explanatory if you want to more info I suggest you check out this Investopedia page: www.investopedia.com I hope this helped you and your trading. Thank you for reading!
GEducation
by Mr_Rolie
5
Tezos (XTZ)/USDT Market Cycles Pivot points (zones) PsychologyI have combined the idea of learning by cycles and pivot points (zones) with an actual trading idea for positional work using the example of the Tezos (XTZ) coin paired with USDT (USD). According to Dow theory, there are 3 types of trends: 1) main (long-term). 2) minor. 3) insignificant (small). 3) Phases of trends. In turn, each trend has the following phases: 1) phase of accumulation (set of position). 2) the phase of public participation (trend development) 3) panic phase (reset position). 4) the phase of price reduction (dump). 1. The phase of accumulation. (position set). This stage occurs after the market has finished the downtrend and the dump is stopped. The price has formed a "bottom", in slang they say "bottom". It is at this stage that traders and investors enter the market, which can rightfully be called professional. They have the greatest amount of information (often internal - insiders) about the current state of the market and are the first to start active actions. The rest of the market participants do not realize at this time the state and direction of the market. Of course, the accumulation phase is not easy to detect. It often follows a downtrend. And it can be, in turn, just a minor trend in the general downtrend. As a result, instead of a new trend, only a temporary pullback is obtained. From a technical point of view, the beginning of a new trend is always accompanied by a period of consolidation. This is when the market goes sideways and then starts to show an uptrend. 2. Phase of public participation (trend development). Participation Phase Advanced investors and traders enter the market in the accumulation phase. When the trend really reverses, the public participation phase begins. Here the crowd enters the market. As this stage progresses, more traders jump into the current move as fear of loss is suppressed by greed and fear of missing out on an opportunity. This phase is the longest of all and is also characterized by the most active movement. Highs are constantly being updated - exactly what investors have been waiting for. The trend is developing. When this stage begins to end, the "last majority" jumps into the market and trading volumes begin to increase significantly. At this point, the theory of great stupidity prevails. The price rises significantly beyond historical levels, and logic and reason give way to greed. While the majority enter the market, professional traders cut or close their trading positions. But as prices begin to level off or the rally slows down, those latecomers who stay out of the game see it as a buying opportunity and enter the market. Prices make the last parabolic move, known in technical analysis as a buying climax, when the greatest profits are often made in a short period. 3. Panic phase (reset position, distribution) This is the phase where experienced traders and investors exit the market, and less experienced ones, on the contrary, enter the market. As a result, these investors and traders are excited about buying at the peak of the trend, shortly before its spectacular fall. The same phase is also a reversal one - professional investors and traders understand that the market has exhausted itself and begin to close their positions opened in the first phase. To identify this phase, it is necessary to carefully study the signs that the market rally is complete. Moreover, the more active the market growth, the stronger the subsequent fall will be. In the third stage of the market cycle, sellers begin to dominate. This part of the cycle is identified by a period in which the bullish sentiment of the previous stage is replaced by mixed sentiment. When this stage is over, the market direction changes. Classic chart patterns such as "double and triple top" or "head and shoulder" are examples of such movements that occur during the distribution stage. The distribution stage is a very emotional period for the markets as investors are gripped by periods of complete fear, interspersed with hope and even greed, as at times the market may seem to be rising again. Panic phase in a downtrend. A similar story is when the main trend is bearish and goes down. The situation repeats itself in a mirror image, and at the implementation stage, a real panic is often formed, when many inexperienced investors and traders dump their assets and the price receives the last downward impulse before growth. 4. The phase of decline. (Dow did not separately identify this phase in his writings. In Dow's theory, this is the final stage of the distribution phase). The fourth and final stage in the cycle is the most painful for those who still believed in the price increase. Many are holding them because their assets have fallen below their original amount. It is only when the market is down 50% or more that many of those who bought during the distribution stage or early in the decline give up. "Faith is being killed!" For more experienced traders, on the contrary, it serves as a buy signal and is a sign that the formation of a bottom is inevitable. _____________________________ 4) Choice of cycle time. An intraday trader who trades relatively small amounts and uses 5-minute candles can see many full cycles per day, while, for example, a positional trader using a weekly or monthly timeframe charts can see several cycles per year (average liquid instruments) or an extended cycle for several years (highly liquid instruments). But he also works in relatively large amounts that are not comparable to a scalper trader. Your task is to learn how to correctly recognize market cycles on your working timeframe and use it in your trading. ___________________________________ 5) Points (zones) of price reversal. It is necessary to immediately clarify the point (zone) of the price reversal always remains a potential point (zone), because it can act as a continuation of the trend. It is just that in certain zones there is a greater likelihood of a change in price movement than in others. This is very important to understand. Work like a trader, not like a "successful" wang hamster with which the Internet is clogged. No one knows the exact future. You can identify potential more or less likely price movements and use this in your trading. It is also worth noting that it is not possible to predict everything. It is important that a large number of your forecasts for price movements, thanks to your experience and knowledge, are correctly determined. Theory without practice is zero! Only your knowledge, modernized to the reality of the market, can give results in practice.
Education
by SpartaBTC
8
Gartley Pattern Cheat SheetHello, guys! Here is a cheat sheet for the very reliable pattern - Gartley. If you are able to find it on a chart the successful trade can be executed. The most important thing for gartley is the proportions which should be approximately like on the chart. There are four most popular Gartley's types: -Crab -Butterfly -Bat -Classical Please, write in comments how are your trades with this pattern, it's very interesting to know! DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
UEducation
by Skyrexio
9
Chart Patterns Cheat SheetHello, traders! Here is a cheat sheet which help you to identify the most frequent and reliable chart paterns. I should tell you that the patterns from the group "indefinite" are classified as bullish or bearish in classical literature, but in practice we should be careful using it in trading decisions. BULLISH PATTERNS Inverted Head & Shoulders , Double and Triple bottom are the most simple, frequent and reliable bullish pattern. Let's talk about bullish flag . It usually occur on the uptrend. The volume is high at the beginning of the flag and decrease to the end until the massive breakout to the upside with high volume. The cup & handle is rare pattern and usually play out at the bigger timeframes. INDEFINITE PATTERNS The different types of triangles and wedges are very popular patterns and can be seen at the different timeframes. In classical books about TA rising wedge and descending triangle are bearish patterns, falling wedge and ascending triangle are bullish. But in practice it is very important to observe the side of it's breakout, as a result they can be bullish or bearish like the symmetric triangle . We should wait for the proper breakout confirmation to make a correct trading decision. BEARISH PATTERNS This patterns are the opposite to the bullish pattern, but work at the same way. If you want to learn more about some pattern please give us to know it in comments. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
Education
by Skyrexio
16
Guide to Fundamental Analysis in Crypto WorldLet's consider a very important topic of fundamental analysis for cryptocurrencies. If we talk about traditional markets the fundamental analysis takes into account the company's financial statement and macroeconomic climate, but in case of cryptocurrencies this information is unavailable because the lack of the publicity. As a result the technical analysis role in crypto world is more significant, but applying the FA you can significantly improve your trading results. Here is 7 areas which should be analyzed to apply complex approach. 1. ROADMAP AND WHITEPAPER. This point is most significant for the altcoins. The most reliable projects have a very serious development plan, every step should be explained in details in the roadmap and whitepaper. If it's not everything good with it, the project could be just scam. 2. MARKET CAPITALISATION. It is simple the coin quantity multiplied by the current market price of one coin. It is widely known that the lower market cap associated with the higher potential price growth. 3. VOLUME. If the coin has a low volume traded the huge manipulations could take a place in the market. The coin should be represented in the largest cryptocurrency exchanges it increases the probability that the corresponding project is not a scam. 4. COIN SUPPLY. Here we should know about if the coin supply restricted or not. If it is restricted the increasing demand pushes the prices higher. 5. FOUNDERS. The projects with a great potential is driven by founders and developers which have already realized some successful projects. In the opposite case it is probably scam. 6. DOMINANCE. On TradingView you can find the market dominance of BTC, USDT, ETH and Altcoins. This is the demonstration of the capital flow between different cryptocurrencies. For example if the BTC dominance decreased and Altcoin dominance increased the Altcoin's prices are not so significantly affected by the Bitcoin price changes. 7. NEWS. This is the most important part of FA, especially for the large cryptocurrencies. Thus the positive news push the price higher, while negative one entail dumps.
Education
by Skyrexio
2
The Ichimoku Cloud (Ichimoku Kinko Hyo) - WTF is itSo, the Ichimoku Cloud (Ichimoku Kinko Hyo) - WTF is it??? At first the Ichimoku Cloud can look a bit daunting, but after reading this, hopefully it will put you at ease & you will realise that it is a really neat and powerful indicator that shows you Momentum, Trend, Support and Resistance . Note that you can use the Ichimoku Cloud for all timeframes, but it may not work on monthly or yearly charts if there is not enough previous data. The Ichimoku Cloud ( Ichimoku Kinko Hyo) is made up of 5 indicators, The Conversion Line (Tenkan Sen), The Base Line (Kijun Sen), Leading Span A (Senkou Span A), Leading Span B (Senkou Span B) and the Lagging Span (Chikou Span). On TradingView the default settings for the Ichimoku Cloud are: Conversion Line Periods = 9 The Base Line Line Periods = 26 Lagging Span 2 Periods = 52: Is actually the Leading Span B Displacement = 26: Is actually the Lagging Span For the Crypto market, these default settings are no good and we need to adjust the settings because Crypto is 24hrs a day, 7days a week, 365 days a year. Crypto never closes “unless an exchange or broker gets worried” 😜. Using the TradingView’s system, the Crypto settings need to be changed to: Conversion Line Periods = 20 The Base Line Line Periods = 60 Lagging Span 2 Periods = 120: Is actually the Leading Span B Displacement = 30: Is actually the Lagging Span Some people have posted online saying the displacement should be 60 for Crypto, but that is incorrect. 60 gives too much distance from the Cloud (Kumo) and you cannot get accurate readings for Resistance and Support, so 30 is perfect for Crypto needs. Using the Crypto Settings, The Conversion Line (Tenkan Sen) is a Midpoint of the previous 20 Period Highs and 20 Period Lows. The Base Line (Kijun Sen) is a Midpoint of the previous 60 Period Highs and 60 Period Lows. So they are not SMAs or EMAs. What is neat is that if you change timeframes then you will get the 20 & 60 Period Midpoints for whatever timeframe you are in, so it is a very useful tool to see if there is a possible cascade effect happening on lower timeframes that may cascade on to higher timeframes. If the Conversion Line (Tenkan Sen) crosses under the Base Line (Kijun Sen), that is a Sell Signal or varying strength depending on where it crosses in relation to the rest of the Ichimoku Cloud Indicator. If the Base Line (Kijun Sen) crosses back under the Conversion Line (Tenkan Sen), then that is considered a buy signal of varying strength depending on where it crosses in relation to the rest of the Ichimoku Cloud Indicator. The Conversion Line (Tenkan Sen) & The Base Line (Kijun Sen) can act as potential Support and Resistance depending on if the current price is above or below either of the indicator lines. Leading Span A ( Senkou Span A) is a Leading momentum indicator and is already calculated from the Conversion and Base Line values, hence why you only need to add a value for Leading Span B (Senkou Span B) which is 120. The Leading Span B (Senkou Span B) uses double the periods so it will react slower compared to Leading Span A (Senkou Span A). The gap between Leading Span A (Senkou Span A) & Leading Span B (Senkou Span B) is the Cloud (Kumo). If the Cloud (Kumo) is green, that indicates we are in a Bullish Trend for that timeframe. If the Cloud (Kumo) is red, that indicates we are in a Bearish Trend for that timeframe. The area above the cloud is the Bullish Zone & the area below the cloud is the Bearish Zone. Inside the cloud is the Equilibrium Zone, which can be seen as trend-less, uncertainty or trading sideways. A key move to look out for is if the Leading Spans A,B are Crossing/Twisting from either a green cloud into a red cloud or vice versa to indicate a trend reversal. Note the Cloud (Kumo) can be Red or Green while the price action is in the Equilibrium Zone depending on if it dipped down or up into the Cloud (Kumo). Note that because we dip downwards outside of the Cloud (Kumo) that doesn’t mean the Cloud will turn red because we may rebound before the Leading Span A (Senkou Span A) gets a chance to cross Leading Span B (Senkou Span B) and vice versa. If the Cloud (Kumo) is thin then this is a good sign of momentum, when the Cloud (Kumo) starts getting wider, that means momentum is slowing down. The Leading Span A (Senkou Span A) & the Leading Span B (Senkou Span B) can act as potential Support and Resistance depending on if the Price is above or below the Cloud (Kumo), or in the Equilibrium Zone. Note that the Leading Span A (Senkou Span A) & Leading Span B (Senkou Span B) are plotted 30 Periods ahead of the current price. The Lagging Span (Chikou Span) is a momentum and a 2nd confirmation indicator that enables you to see potential trend changes. Using the Crypto settings, the Lagging Span (Chikou Span) is calculated by shifting the indicator 30 periods behind the last closing price. If the Lagging Span (Chikou Span) indicator is above where the price was at 30 periods ago then that is considered an uptrend for the timeframe you are in. If the Lagging Span (Chikou Span) indicator is below where the price was at 30 periods ago then that is considered a downtrend for the timeframe you are in. A Bullish and Bearish confirmation signal can be seen if the Lagging Span (Chikou Span) indicator crosses up or under that previous 30 period price respectively, but also using the other indicators as conformation. If the Lagging Span (Chikou Span) is inside the previous Price from 30 Periods ago, then that is considered sideways trading, choppy or trend-less. The Ichimoku Cloud (Ichimoku Kinko Hyo) is designed to be used as a whole and each of the indicators complement one another. It’s best practice to use it with other indicators like, Volume , RSI , VPVR, MACD , ADX or the SMI. This is my first educational post on TradingView, so i'd thought id keep it brief. I’ll update and go into the different confirmation buy/sell levels, and more on each of the indicators at a later date. I hope you have found this educational post helpful 🙏 In fact, reading this thing back, its not really that brief is it 😅👍
BINANCE:ADAUSDEducation
by TradingThroughTheLens
85