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Ethereum (Cryptocurrency)

Importance of diversification across asset classesAny 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 :) In this post, we have attempted to cover the importance of portfolio diversification. To drive our point home, we have taken a 2-year reference and divided it into 3 parts: Pre-pandemic : January 2019 to 10th Feb 2020 Height of the pandemic : Feb 2020 to 23rd March 2020 Post pandemic : 30th March 2020 till present The 3 classes of asset that we included in this analysis are: Cryptocurrency- ETH Stocks- S&P 500 Commodity- Gold Pre-pandemic period: ETH was on a bull run as were other major crypto currencies. It shot up more than 125% during that period. The S&P 500 index was up by 38.5% during the same period, while the precious commodity, Gold, rose by 24.15%. At the height of the pandemic: It was a testing time for the diversification of portfolio. Holding any particular asset class and not diversifying at all, proved to be a disaster for many naive investors. ETH dropped by approximately 65%. The S&P 500 index tanked almost 33%, while Gold, considered to be the safest asset, lost 12%. Post-pandemic period: It was one of the massive bull-runs in the history of bull runs. Patient investors who entered into the markets at the height of the pandemic saw their wealth growing multiple times. Moreover, with the Central banks around the world printing currencies at a furious pace, the only way to beat inflation was to invest in high alpha generating assets. ETH shot up almost 1800% during this period, which is a 18x return. The S&P 500 shot up over 94%, while Gold went up by a meagre 21%. Considering the returns and the risk over these 3 periods, it can be stated with absolute conviction that the need for diversification is supreme. ---------------------------------------------------------------------------------------- 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 :)
BITSTAMP:ETHUSDEducation
by Mudrex
2
Taproot upgrade: 1st major upgrade in 4 years for BTC| what now?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 :) Quick glance: In our last tutorial, we discussed the use of MACD in different time frames in crypto-trading. In this tutorial, we will discuss the Taproot upgrade: the first major upgrade for BTC in 4 years! Let us delve deeper into the Taproot upgrade and why it was so badly needed! The Taproot upgrade for BTC would allow smart contracts to be run efficiently and cheaply! As of now, smart contracts are usually run on the Ethereum network because of the higher efficiency. However, with the Taproot upgrade, Bitcoin has the potential to elevate itself and integrate with mainstream finance. Taproot upgrade for Bitcoin would allow smart contracts to take up lesser space on the network. Technologically speaking the Bitcoin network currently uses the 'Elliptic Curve Digital Signature algorithm.,' which occupies more space. It will be switched over to the 'Schnorr signatures' that will make the simpler transactions potentially indistinguishable from complex transactions. It translates into greater anonymity in the network while maintaining transparency. Apart from the efficiency aspect, the ability to run smart contracts cheaper is what will be revolutionary. Currently, running smart contracts on Bitcoin's core protocol layer is not exactly feasible. It is quite expensive and time-consuming, thereby rendering it almost useless. Many experts suggest that smart contracts would be one of the key selling points for Taproot. To put things into perspective, smart contracts can be used for almost any trivial financial transaction such as paying utility bills to pay rent, among others. The impact on the investors would likely be huge. Any long-term investor knows that the true potential of their asset would come from practical use cases that are adopted by the masses. Bitcoin's taproot upgrade might just be the key element that would propel it into mainstream finance. The bottom line is the kind of revolution that the Taproot upgrade might bring for Bitcoin is phenomenal.
BITSTAMP:BTCUSDEducation
by Mudrex
56
How to maximise profit while capturing a trend in crypto tradingQuick glance: We have come up with another tutorial to maximise the potential of MACD in capturing a trend. In this tutorial, we discuss the use of MACD in different time frames in crypto-trading. First let us understand how is the MACD histogram calculated? The MACD-Histogram measures the distance between MACD and its signal line (the 9-day EMA of MACD). Like MACD, the MACD-Histogram is also an oscillator that fluctuates above and below the zero line. But then, MACD is a lag indicator! Then how do we predict future movements with it? Since the Signal Line is the EMA of the MACD line, it lags the value of MACD. Therefore, when MACD > Signal Line, the market has an overall positive sentiment. When MACD < Signal Line, the market has an overall negative sentiment. Thus when MACD Histogram is positive, bullishness is anticipated. When MACD Histogram is negative, bearishness can be anticipated. Hence the following buy/sell signals can be generated: Buy when: MACD Histogram > 0 MACD crosses up Signal Line Sell when: MACD Histogram < 0 MACD crosses down Signal Line T1: 1D timeframe T2: 1H timeframe Please note: The fact that there were minimum/none false signals generated shows how beautifully we filtered the false signals using MACD Histogram in multiple time-frames to determine the overall trend first and then generate the buy/sell signals. ------------------------------------------------------------------------------------------------------------------------------------------------------------------- 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:ETHUSDEducation
by Mudrex
5
Fibonacci Circles GuideA guide for Fib circles 1 - Draw the trendline 2 - look for areas of confluence around the circle at levels for example 0.618, 1.618, 2.618, 3.618 ... 3 - Make an assessment This is the 4Hour chart for Ethereum and isn't as reliable as using a higher timeframe, say drawing the trendlines through the entire bear market on the weekly for Ethereum would be more effective. Regardless it still serves its purpose. This is little data for the current bull run. This trendline drawing can be applied to any (weekly preferable) chart and assessments can be made based on the position of the price, above or below a key Fib level E.g (0.618) Hope this helps aspiring chartists
COINBASE:ETHUSDEducation
by Bixley
2
Learn to Read Charts (Stochastic Oscillator & ETH)✅ Ever heard people saying that something is "overbought" or "oversold"? One of the most famous and powerful tools for this is the Stochastic Oscillator. This indicator easily shows you if something is overbought or oversold. ✅ What is a Stochastic Oscillator? A stochastic oscillator is an indicator that compares a specific closing price of an asset to a range of its prices over time – showing momentum and trend strength. It uses a scale of 0 to 100. A reading below 20 generally represents an oversold market and a reading above 80 an overbought market. However, if a strong trend is present, a correction or rally will not necessarily ensue. ✅ To use the stochastic oscillator, it is first important to understand exactly what the readings are showing you. The stochastic oscillator is a bound oscillator, which means it operates on a scale of zero to 100 – this scale represents an asset’s entire trading range during the 14 days, and the final percentage shows where the most recent closing price sits within the range. This makes it easy to identify overbought and oversold signals. Regardless of how quickly the market price changes, or how the market volume fluctuates, the stochastic oscillator will always move in this range. ✅ If there is a reading over 80, the market would be considered overbought, while a reading under 20 would be considered oversold conditions. ✅ If we continue our previous example, a reading of 93.3% would be considered extremely overbought during the 14-day period. Following stochastic oscillator theory, this implies that a price reversal would be impending. In fact, some people believe that a reading above 90 is extremely risky and warrants the closing of positions. ✅ The most common use of the stochastic oscillator is to identify bullish and bearish divergences – points at which the oscillator and market price show different signals – as these are normally indications that a reversal is imminent. A bullish divergence occurs when the price records a lower low, but the stochastic oscillator forms a higher low. This shows that there is less downward momentum and could indicate a bullish reversal. A bearish divergence forms when the market price reaches higher highs, but the stochastic oscillator forms a lower high – this indicates declining upward momentum and a bearish reversal. ✅ However, it is always important to remember that overbought and oversold readings are not completely accurate indications of a reversal. The stochastic oscillator might show that the market is overbought, but the asset could remain in a strong uptrend if there is sustained buying pressure. This is often seen during market bubbles – periods of increased speculation that cause an asset’s price to reach consistently higher highs. ✅ TradingView lets you use the Stochastic Oscillator for fast and easy forecasting. You can find it in Indicators & Strategies (f(x)) above your chart.
Education
by MonoCoinSignal
5
EDUCATION - Identifying & Trading Flag PatternsIn this post, we will be explaining what a flag patterns is and how to identify and trade them. What is a Flag? The flag pattern is the most common continuation patterns in technical analysis. It often occurs after a big impulsive move. The impulse move is followed by short bodied candles countertrend to the impulse move, which is called the flag. It is named because of the way it reminds the viewer of a flag on a flagpole. Often, the breakout of the flag is the same size as the impulse leading to the flag. We can use this to create our take profit levels. There are 2 types of ways we can trade flag patterns; Risky Entry & Safe Entry. See below for the pros and cons for both and how to enter them _______________________________________________________________________________ Risk Entry: The reason why it is called a risk entry is because we haven't got many confirmations apart from the bounce off the fibonacci level. Price may have the potential to go lower for a deeper correction before moving up. Whereas for the safe entry, the confirmation that it is a valid flag would be the break of the flag pattern. How to trade using Risk Entry: Wait for price to bounce off the fibonacci levels (0.5 or 0.618) and then enter with stops below/above the correction. One of the advantages of doing a risk entry is that we can have small stop loss and have a great risk:reward ratio. Also, we can gain an entry at the start of the move and HODL! Safe Entry: Safe entry requires more than one confluence and requires confirmation. We have the rejection of the fibonacci level as well as a breakout of the flag, confirming that it is a valid flag pattern. How to trade using Safe Entry: For a safe entry, enter upon the break of the flag pattern with stops above/below the flag depending on whether its a bull or a bear flag. First TP would be the recent structure level and second TP would be the length of the impulse which led up to the correction. The disadvantage to using a safe entry is that we require a bigger stop loss which makes the risk:reward ratio not as great as the risk entry. However, the probability of the trade succeeding is higher. _______________________________________________________________________________ EXAMPLES OF RISK ENTRY EXAMPLES OF SAFE ENTRY
Education
by Altsignals
6
IOTAUSD _ If this were the WYCKOFF Accumulation ...On many websites educating us in relation to various trading methods and trading psychology we see often Wyckoff Schematics in relation to Distribution and Accumulation. This example presents IOTAUSD trading pair, but obviously could be used on others. It's quite complex and extensive for beginner traders to wrap your head around but if true and spotted early might become a lucrative trading method for those who are patient. Here I present an example which might obviously fail, but at least you know what you could expect if this were to platy out.
BINANCE:IOTAUSDEducation
by crypto_poet
Bull or bear beat holding +249.2% over a year, in profit in MayAs traders we look to capitalise on all sort of markets, not just parabolic runs. Today we are exploring how to run a long strategy even when the bulls are not in control. WILL POST LAST 50 POSITIONS BELOW We are looking for an strategy that: 1. has been beating buy and hold all year 2. Has a drawdown of max 15% in may 2021 3. Is simple to execute and automate Not all candlestick patterns are created equal, and they do not work on all markets. However they do work in crypto, at least based on experience as they are not tough to identify and speculators tend to react to them. This is why we focused on candles that are not that difficult to identify and are very clear in meaning. The strategy (FULL INSTRUCTIONS): On the 30 min timeframe: We are going to open a position when the candle is a bullish Engulfing We are going to close the position when the candle is bearish Marubozu No stop loss or take profit, these are the only rules we follow, but we follow them a 100% of the time. The results: The strategy brought in 249.17%, beating holding. If you started trading this a year ago with 1 Bitcoin, you would be 2.4917 BTC in profit at the moment. What's even better the max drawdown throughout the year was 22.7% and it was actually in February. During May we were only 11% down at a certain point. This provides a Sortino Ratio of 5.44 which is a stellar mark for these volatile markets. The positions: 31/05/2021 04:30 31/05/2021 14:00 10 hours OP 0.06681 CP 0.068884 +3.1% 29/05/2021 21:30 30/05/2021 19:30 22 hours OP 0.065407 CP 0.067746 +3.58% 29/05/2021 00:30 29/05/2021 18:00 18 hours OP 0.068427 CP 0.066952 -2.16% 28/05/2021 07:30 28/05/2021 14:30 7 hours OP 0.069574 CP 0.069572 -0.00287% 25/05/2021 18:00 27/05/2021 19:30 2 days OP 0.068144 CP 0.071024 +4.23% 24/05/2021 00:30 25/05/2021 03:30 1 day OP 0.061435 CP 0.067043 +9.13% 22/05/2021 22:30 23/05/2021 12:30 14 hours OP 0.062197 CP 0.0581 -6.59% 22/05/2021 11:00 22/05/2021 17:30 7 hours OP 0.064251 CP 0.06059 -5.7% 19/05/2021 22:00 20/05/2021 21:00 23 hours OP 0.066705 CP 0.068997 +3.44% 17/05/2021 23:00 19/05/2021 07:00 1 day OP 0.075193 CP 0.074787 -0.54% 17/05/2021 06:30 17/05/2021 09:30 3 hours OP 0.076593 CP 0.077412 +1.07% 14/05/2021 13:00 15/05/2021 14:30 1 day OP 0.079504 CP 0.078525 -1.23% 13/05/2021 16:30 13/05/2021 23:30 7 hours OP 0.076788 CP 0.074242 -3.32% 12/05/2021 10:30 13/05/2021 15:30 1 day OP 0.075732 CP 0.075619 -0.149% 11/05/2021 06:30 12/05/2021 10:00 1 day OP 0.071125 CP 0.075353 +5.94% 09/05/2021 16:00 10/05/2021 11:00 19 hours OP 0.06759 CP 0.069748 +3.19% 07/05/2021 13:30 09/05/2021 00:30 1 day OP 0.061147 CP 0.065733 +7.5% 05/05/2021 01:30 06/05/2021 23:30 2 days OP 0.061121 CP 0.061832 +1.16% 03/05/2021 00:30 04/05/2021 22:00 2 days OP 0.05225 CP 0.061328 +17.4% 01/05/2021 22:30 02/05/2021 05:30 7 hours OP 0.051064 CP 0.051111 +0.092% 30/04/2021 19:00 01/05/2021 15:00 20 hours OP 0.048829 CP 0.049703 +1.79% 30/04/2021 09:30 30/04/2021 16:00 7 hours OP 0.051113 CP 0.047849 -6.39% 29/04/2021 08:30 30/04/2021 02:30 18 hours OP 0.050351 CP 0.051114 +1.52% 28/04/2021 10:00 29/04/2021 00:30 15 hours OP 0.04799 CP 0.049829 +3.83% 27/04/2021 00:00 27/04/2021 19:30 20 hours OP 0.046896 CP 0.047795 +1.92% 26/04/2021 10:00 26/04/2021 13:00 3 hours OP 0.046466 CP 0.046378 -0.189% 24/04/2021 21:00 25/04/2021 13:30 17 hours OP 0.045035 CP 0.046231 +2.66% 22/04/2021 20:00 24/04/2021 17:00 2 days OP 0.04791 CP 0.044796 -6.5% 19/04/2021 12:00 22/04/2021 18:00 3 days OP 0.039343 CP 0.04728 +20.2% 16/04/2021 10:30 17/04/2021 19:00 1 day OP 0.03943 CP 0.039117 -0.794% 15/04/2021 18:00 16/04/2021 05:00 11 hours OP 0.039286 CP 0.039291 +0.0127% 13/04/2021 17:30 15/04/2021 17:00 2 days OP 0.0363 CP 0.039141 +7.83% 13/04/2021 14:30 13/04/2021 17:00 3 hours OP 0.03575 CP 0.035968 +0.61% 12/04/2021 11:00 12/04/2021 12:30 2 hours OP 0.035761 CP 0.035598 -0.456% 11/04/2021 03:30 12/04/2021 09:30 1 day OP 0.035639 CP 0.035866 +0.637% 10/04/2021 21:00 10/04/2021 23:30 3 hours OP 0.035761 CP 0.035688 -0.204% 08/04/2021 22:30 09/04/2021 13:30 15 hours OP 0.035729 CP 0.035448 -0.786% 08/04/2021 02:00 08/04/2021 18:30 17 hours OP 0.035231 CP 0.035636 NA +1.15% 05/04/2021 05:30 06/04/2021 19:30 2 days OP 0.035409 CP 0.036274 +2.44% 02/04/2021 13:00 04/04/2021 03:00 2 days OP 0.033704 CP 0.035098 +4.14% 01/04/2021 13:30 02/04/2021 04:00 15 hours OP 0.032793 CP 0.033349 +1.7% 30/03/2021 06:30 31/03/2021 22:00 2 days OP 0.03138 CP 0.032743 +4.34% 27/03/2021 09:00 30/03/2021 02:30 3 days OP 0.030822 CP 0.031326 +1.64% 26/03/2021 02:00 27/03/2021 04:00 1 day OP 0.03114 CP 0.030919 -0.71% 25/03/2021 16:00 25/03/2021 20:00 4 hours OP 0.031273 CP 0.030754 -1.66% 23/03/2021 17:30 23/03/2021 20:30 3 hours OP 0.030826 CP 0.03091 +0.272% 20/03/2021 15:30 23/03/2021 00:30 2 days OP 0.031261 CP 0.030839 -1.35% 20/03/2021 00:00 20/03/2021 05:30 6 hours OP 0.031174 CP 0.031295 +0.388% 18/03/2021 18:00 19/03/2021 03:30 10 hours OP 0.030665 CP 0.03087 +0.669% 17/03/2021 07:30 17/03/2021 18:00 11 hours OP 0.031816 CP 0.032216 +1.26%
Education
by CleoFinance
4
Most simple strategyIf you don't have to much time or you want to keep your charts simple, or maybe you are just lazy. This strategy is right for you ! What is it ? Is it magic ? No... Round numbers . Imagine you are going to buy a car. You go to website and look for used cars... What is your price limit ? It is always 5000USD, 10 000EUR or 2500GBP. You dont set your price limit to 4786EUR or 13 334USD. It is the same in trading and investing. Round numbers are psychological support/resistance levels . For example, if ETH/USD is going upwards and reaches 2000USD, you will notice strong bearish reactions, because a lot of traders believe that the currency pair cannot go any higher than that, so they sell in fear of losing their profits. Traders can use the round numbers as a strategy. Psychological levels are 00, 25, 50 and 75. In order to use the numbers, you need to go short when market goes up and one of these levels is reached. Also at these price levels you can expect institutional buy/sell orders, SL's and TP's. You can also use it in forex, stocks or indeces... Watch how 1.40(GBP/USD) works. Or 1.20 (EUR/USD) Try to play with your charts and be creative... Do not hesitate to add moving averages, fibo levels or candlestick patterns :) And as I always say: there is beauty in simplicity ;)
KRAKEN:ETHUSDEducation
by FoxCharts
4
Ethereum 05/13/21, Mean Reversion studyThis is a really simple (almost too simple) way of predicting the most likely number of candles before a revisit to a certain level, presuming no outside factors increase the required sample of study. I have just tried to predict very specific candle positions and times as well as the bottom, but this is only for the extreme near future (ie, the easiest to predict), past that it becomes harder unless you reduce your precision several factors. This is an ideal situation where there is a clear median that it has clung to, and the standard deviations are very obvious and apparent. Note: I am only counting candle bodies, not wicks. edit: I also made the highlight before the current hour while I was writing this it seems to agree with me so far.
Education
by rubyatmidnight
Why Ethereum?ETHEREUM “The only thing that really worried me was the ether. There is nothing in the world more helpless and irresponsible and depraved than a man in the depths of an ether binge.” Hunter S Thompson, Fear & Loathing in Las Vegas. Why Ethereum? Ethereum is an open-source platform based on blockchain technology, which allows new developers to create their own decentralized applications, called Smart Contracts. Bitcoin stores data on transactions in Bitcoin Ethereum stores data on transactions in Ether tokens, but also stores details of any Smart Contracts written and uploaded to its blockchain. Smart contracts are just like regular contracts but in digital form. This is kind of ideal for financial contracts, such that when certain criteria are met, the transaction occurs without further input. Additionally, the data is all decentralised, and therefore more secure. Thanks to blockchain technology, smart contracts can be executed as programmed, without the possibility of delays, censorship or outside interference (which is the case with physical contracts). In other words, they allow efficient, safe operations and without intermediation. Users pay for the use of the decentralised network using… you guessed it… Ether tokens. While this is all a bit mumbo-jumbo sounding, but suffice it to say major companies rate it enough to get involved, and are currently developing applications using it, see this article . This gives Ethereum a decent edge over Bitcoin going forward. It has intrinsic “crypto-value” and also an actual real-life use case. You can facilitate exchanges of money, shares, property, content, or anything else of value. This and the fact it is open source allows the community and private companies to trade it as well as use it for projects. Ethereum was developed in 2013 by Russian Vitalik Buterin, but it wasn't until 2014 that he and his partners presented it at a Bitcoin conference in Miami. From the funds raised in the subsequent crowd-sale to today (remember that it is ranked number 2 in the ranking of cryptocurrencies with a capitalization of almost half a trillion dollars), the history of Ethereum is a success which would not have been seen without the rise of BTC. ETH is currently 67% correlated to Bitcoin. TECHNICAL ANALYSIS The weekly chart shows that it is very likely that Ethereum is in wave 3 as you may be able to see in the image. While ETH is very young in terms of how reliable Elliott Waves can possibly be in cases like this, there is no denying that the movement up has been impulsive. VERY impulsive! It’s not that often you are looking at a 10.618 extension. After such an aggressive surge upwards, I would expect a pullback & given the correlation to Bitcoin, this would be a little after BTC has engaged on its own corrective move, which I expect imminently. I also think the pullback will be large. I am long term bullish and believe that the price of Ethereum has the potential for appreciation, but needs to collect some liquidity from lower down. Possibly a lot lower down, and the size of the correction will be influenced by the correction in Bitcoin. So, the message for now is basically wait for a better opportunity. This is not investment advice and in no case will I be responsible for possible losses caused by investing in an asset as volatile as cryptocurrencies.
BITSTAMP:ETHUSDEducation
by Paul_Varcoe
11
How to chart crypto market caps beyond TOTAL, TOTAL2, etc.! TradingView offers some awesome abilities to chart the entire market cap for cryptocurrencies using TOTAL, TOTAL2, and OTHERS under CRYPTOCAP. However, I often find myself having inquiries beyond just these symbols, so I would like to introduce how to show other market caps possible using some simple math. For those who are unaware what the symbols mean under CRYPTOCAP, here is a brief introduction to a few of them: * CRYPTOCAP:TOTAL - The entire market cap of all cryptocurrencies in the world such that if you were to own every cryptocurrency everywhere, this is how much money you would have * CRYPTOCAP:TOTAL2 - TOTAL minus the the market cap of Bitcoin * CRYPTOCAP:BTC.D - Also known as "bitcoin dominance", this represents the percentage of the total market cap which is made up of Bitcoin * CRYPTOCAP:ETH.D - Similar to BTC.D, this represents the percentage of the total market cap which is made up of Ethereum * CRYPTOCAP:OTHERS - TOTAL minus most of the cryptocurrencies provided by CRYPTOCAP that end in ".D" Additionally, for a full list of what OTHERS omits, this can be found at the following page by excluding all the prices described under the section "Total Market Capitalization Dominance, %" on that page. However, sometimes you might be looking for further market caps (e.g., just bitcoin, etc.). For these, here are some useful equations that might help you out: * "CRYPTOCAP:TOTAL-CRYPTOCAP:TOTAL2" , aka "the TOTAL market cap for BTC" - The easiest way to calculate the market cap of BTC is "TOTAL-TOTAL2", since the difference between TOTAL and TOTAL2 is the whole of BTC by definition * "CRYPTOCAP:ETH.D*CRYPTOCAP:TOTAL/100" , aka "the TOTAL market cap for ETH" - Since ETH.D is the total percentage of ETH in the market, multiplying this (as a percentage) by the total market cap yields the total market cap of ETH * "CRYPTOCAP:TOTAL2-CRYPTOCAP:ETH.D*CRYPTOCAP:TOTAL/100" , aka "the TOTAL market cap of everything BUT BTC and ETH" - Since we just calculated the total market cap of ETH, and since TOTAL2 is the total market cap minus that of BTC, subtracting the latter from the former yields the total market cap minus the two largest behemoths I should note as well that the market cap of any currency can easily be calculated using the formula ".D*TOTAL/100" so long as "COIN" in this formula has a "dominance" indicator under "CRYPTOCAP", e.g., XRP, LTC, BNB, etc. To chart any of these symbols, simply enter in the above formulas (without the quotes) instead of the symbol when using the search box in the interactive chart in TradingView. For example, instead of searching for "BTCUSD", try searching for "CRYPTOCAP:TOTAL-CRYPTOCAP:TOTAL2" instead. Hopefully folks find this useful for their future charting endeavors.
CRYPTOCAP:TOTALEducation
by crypto_trends
3
ETH weekly chart using silver ratio retracements & 0.4142Most of this is explaining why I like the silver ratio: 1+sqrt(2), or 1.4142. It may be a sort of analysis of ETH, but mostly I want to explain why I found the 0.4142 fib chart level so compelling as soon as I started using it (I tried several values and that one INSTANTLY had results, where all the others failed). I was working on this when I saw the front page idea* with my fib chart retrace values! (note: i had to abandon my other account since this had my number attached so I could buy being able to look at two charts at once... x.x. so i am starting fresh, but I have been using sqrt(2) as a fib level since I was trying to figure out my own tweaks on the formulas. In fact, 1.4142 and 0.4142 are WEIRDLY good as fib levels. They are more accurate than 38.6. Because it's sqrt(2), it also fits nicely into the overall template of a fib chart that is mostly focused around ensuring the levels are being respected in general, so that once applied further, the same levels can be predicted in the same manner. I'm not being annoyed about that I would love to see 1.4142 used more often in fib charts; it's just a fantastic level. It's also related to a more complicated topic, enumerative combinatronics, which is quantifying possible patterns... which is perfect for pattern-heavy price action! I initially was not very confident in TA. There are so many different techniques and it is very hard to figure out which are hopeful guesswork and which have an objective relation to the price. Learning incorrectly early on also harmed me, but it was an important lesson to learn. I am not a maths major so my explanations here are pretty minor. www.youtube.com Here's a numberphile video about the silver ratio. sqrt(2) is a Pell number. More formally, {delta} = {delta}S = 1 + sqrt(2). I wish TV wouldn't get mad at me for using math symbols and think I'm not writing in English but okay tradingview. If you were to replace the fib numbers and make a Pell chart instead, it would look like this: nevermind I made it and it was terrible so I scrapped that idea. I will need to mess with the pell series more because that many irrational numbers (19601+13860sqrt(2) = 39201.99997... ok) puu.sh Silver rectangle (as opposed to the so-called ~perfect~ Fibonacci ratio rectangles, I find this one to be more respectable!!) I'm still pretty new and only have a few months with very scattered education regarding these topics so most of it ended up being pragmatically learned and backtested. It seems to work so well that I second guess myself so often I end up making bad trades while it just follows my prediction almost precisely. I just use the retracement because the actual uses are sorta irrelevant to me as long as the ratios and levels I want are on the chart in the way I want them to consistently be used for my own purposes. What's that? I can toss this set of retracement levels and it just manages to fit better than the defaults with zero fitting required! usually Indeed, 0.2 and 0.4142 were probably my favorite discoveries in January when I was experimenting with different mathematics. A runner up is 0.8, only because it usually nests the dip after the 1 (100% value) is reached. As a trading style, the point is to buy in either for a short term trade between 0 and 0.2 and then sell at the silver level (0.4142), or, anything below the silver level is a buy zone, and 0.618 would be the sell point if there is a "projected" chart, which I like doing. It is, and always will be, weirdly accurate in predicting reversals, but never when, only the price. When is the hard part to me. puu.sh example, this is my bitcoin chart from my prediction in march and then now. I was expecting this sort of move but getting it to the exact day and recognizing that last flash crash before it happened (because it was repeating a previous impulse, so is probably some fundamentals I don't know about, whether it's monthly miner sales or just... taxes or whatever). So using presumptions of the asset's usual impulse distances (since, well, the same people are buying and selling, and unless the price changes significantly, the movement in prices tends to always be correlated to previous movements, with the exception of mean reversion inevitability if it's on a wrong side of an MA or vwap or something. Basically, trading probability and the averages. So far it was worked well as long as there is no flash power outage in China that messes everything up. But even then it seems to be priced into the chart levels. My next study is to see if I can integrate Elliot wave theory and these levels into a combined impulse prediction tool that I can use for myself objectively so I can stay in a trade with more confidence. Mostly, I gotta stay off the 15m chart.. lol. Likely fallacy pitfall explanations for the retracement fit: 1. seeing patterns where there are lots of possibilities for patterns to be formed; of course, everyone ends up ignoring the values that are not met or are blown past, since they fail to create any support or resistance. I like to use these levels that are previously unused to predict where a channel may form, because an unused channel is more appealing to price action than a used one, given the volatility a used one entails with so many orders and predictions being made for the same ones. .4142 and .2 and .8 are all slightly off of the fib levels. They are just off enough that instead of being overlapped, they skirt the level. This looks and is a lot cleaner on the chart, but may well just be seeing what one wants to see in how important the levels are. This is why I chose to focus on the 0.4142 level so heavily. It falls just short of the halfway mark (a very important value in probability given it is the median of the range I am trying to predict), which more or less confirms a halfway point. If the trend is very bullish, you can use the 0.4142 level as the guideline to try and predict where the 1 value will end up in the future. I spent some time adding some more predictions and using those levels as examples of their utility in future price projection, as well as how well it can backtest. Here is a step-by-step in how I do this for a quick guesstimate of bullish impulse prices that I find a bit more adaptable than simply the golden ratio fetish, and unsurprisingly, other such irrational numbers work well when used for different purposes. BTC s3.tradingview.com 1 s3.tradingview.com 2 s3.tradingview.com 3 AAPL: s3.tradingview.com ~base ~adjusted ~result The final thing I have to say and want to express is that it's fantastic to learn how all these things work in the book, but the book doesn't matter if you don't have your own understanding and conceptual view of the technique you or I am using. Most of all, it should make sense to you, even if it doesn't make sense to anyone else. I've come to appreciate that with charting and the great variety of ideas and methods used by everyone, closer or further from the standard. It's worth noting the standards didn't have a high success rate anyway when tested in a vacuum; but this methodology is less for efficient autotrading, and more for having a plan and reasons for entering or exiting trades at certain points. The most important element of charting, that I've come to identify, is that it cements the plan into a reference work that when changed becomes useless, so the plan must be stuck to unless price itself defies expectations beyond parameters. Thank you! I'm happy to be able to shove this all in an article finally and sort of start to work out my ideas, as I have very little concrete documentation on it yet, as frankly it's still in the growing pains stages as I am but a bab in TA. Sofie *https://www.tradingview.com/chart/AMC/zjtSxXED-Using-the-Trend-Based-Fib-Extension-Tool/ My examples focus on an uptrend.
Education
by rubyatmidnight
10
Could Ethereum beat Bitcoin? Special Analysis!!!Based in my opinion, there's a highly chances that Ethereum going to strenghten the trend during this bull rally. But stil alert in the market cap, the market cap it's key to know what cryptoucrrency are growing up. For that guys, we would need to be so alert if Ethereum it's take dominance of Bitcoin to growing up. Ok look on 2017, in the Ethereum market cap hit the $142 billion in the past bull rally. Meanwhile, Bitcoin market cap hit the $320 billion in the past bull rally. So, Ethereum was more powerful in the past bull rally on 2017 when Ethereum was undervalued to $100 USD and go to $1,500 USD approximately on the end of 2017. And 2018 was the bear market that Ethereum down to $113 USD. Now, actually, Ethereum it's so near to mark a market cap worth in $500 billion. Meanwhile, Bitcoin market cap it's around of $1.10 trilion. Now, if we look, we can to get price future to know the comparsion what will happening if Ethereum reach the $10,000 USD as first objective, or using the the market cap value to use basic mathematic. To know, Etheruem has the supply circulation of 115,795,729.75 ETH and Bitcoin has the supply circulation of 18,704,050.00 BTC. Now if you want to know the price and know what will be happening in this comparison. Look this exercise. The easy way it's know your price future. Imagine that Ethereum going to reach $10,000 USD. This price future it's possible to reach by long term. We use the Ethereum supply circulation and we use it to multiply with $10,000 USD. and the result will be a market cap value of $1.15 trillion. Now, if you want to know that Ethereum going to reach $20,000 USD for coin. This price future it's possible to reach by long term. We apply the same. Multiplying $20,000 USD with the Ethereum market cap. Ethereum could to reach a market cap worth in $2.31 trillion. The 20,000 USD it's so similar when Bitcoin on 2017 reach this price, now Ethereum it's turn. But what will be happening if Ethereum mark the $30,000 USD. Well, the market cap will worth $3.47 trillion Now, if you want to know in that case of Bitcoin what will be happening if Bitcoin reach the $100,000 USD. We need to know that Bitcoin has a supply circulation of 18,704,050 BTC. We multiply the $100,000 USD as future price with the supply circulation. The result will be 1.87 trillion. If Bitcoin reach the mark of $200,000 USD, The market cap will worth 3.74 trillion My Personal Opinion: I believe that Ethereum may to change the things. As Bitcoin and Ethereum are main cryptocurrencies. A lot people are invest in Ethereum than Bitcoin right now if we compare the Ethereum/Bitcoin ratio. And we see that there's a lot chances that Ethereum it's becoming the next Bitcoin. So, I believe that Ethereum have all chances to go easily so fast a market cap of $1 trillion and so near of Bitcoin market cap. But, this chart are so fundamental key if you hold Ethereum in this altseason. becuase Etheurem coul have more ROI than Bitcoin do. And well, I interesting to look Cardano to compare with Ethereum using the market cap of both cryptocurrencies. Because Cardano, it's the next Ethereum killer and remplace of it For that, big news are incoming in Cardano during this bull rally. For that, Cardano it's my cryptocurrency key in this smart exit plan.
CRYPTOCAP:BTCEducation
by harisonhbn9718
ETHBTC - A simple approachShowing support is greatly appreciated and keeps up the motivation in continuous ideas and education for the community. Observe: 0.041895, 0.045950 Two prices that indicate structure, we can now quickly identify that both prices have been important in a direction, volume and liquidity change, thus giving us key identifiers we can label for reference when we analyze a chart. You can use the "Horizontal Line" tool to analysis almost any security across multiple time frames, it's use is widely forgotten and you can't simplify a chart any less... Horizontal Line Tool: - Mark out important prices - Help show a position, entry, stop - Plot important alerts - Simplify Analysis If you'd like more quick educational posts like this, show us some support
Education
by UnknownUnicorn21108119
2
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
Horizontals and Breakouts: Using ETH as an ExampleThis is an education based on the LTCUSD chart that I posted today. I have also linked my previous education idea down below where I want to drill down one key fundamental: Participation matters, price DOES NOT. DO NOT get emotional seeing price (low or high), look at the participants to see how many people are buying/selling at these levels. Price DOES NOT always imply that there is participation. And Prices at bubble tops NEVER imply participation. Most people have bought/sold before these bubble top levels arrive. Here I show another example where the VPVR (Volume profiles at various price levels) predicted the correct line of resistance. Most charters DO NOT understand this. Patterns lie all the time. A lot of charters on Tradingview and REAL traders use the price tops/ ATHs to draw trend lines. PLEASE do not do this if there isnt meaningful participation/volume at these levels. Hope this helps clarify some arguments that people continue to have on where to draw trend lines from and if you are correctly capturing the wicks. Result: ETH while BOOM above 740 USD while most traders kept drawing harmonics and all sorts of short term pattern crap. Dont believe me? I have linked the idea to LTCUSD vs BTCUSD comparison down below. BTC breakout was at 12.4k when most people thought we will see resistance as we approach 20k. BTC blasted through all these levels.
COINBASE:ETHUSDEducation
by brotoshee
5
How to use trendlines when trading cryptocurrency 🎓A lot of newcomers have been asking for educational content because you don't understand why my strategies work and how I conclude that a particular price-action will likely happen on certain assets at certain price-levels. It's lovely that my followers aren't just seeking signals, but actually digests the charts I'm sharing and actively tries to expand their repertoire. Search no further - here's an easy and free guide to trade cryptocurrency, using trendlines. 🤓 Important aspects of using this strategy A really important step of this strategy is to consider the number of data points you make your trendline from. In this educational scenario, I've used thicker lines for the trendlines with more data points and dashed lines for trendlines that almost can't be considered as a useful trend. As you can see, we have a very solid trendline, which makes it likely that some significant price-action will happen – eventually to the upside. Another crucial aspect of the strategy (and every other strategy other than "hold and pray") is to have a take-profit- and invalidation-area. We always want to know why we're in the position and why we're out of the position. In this particular scenario, I've decided that a convincing break of the strong, bullish trendline would be an invalidation for the trade. If the trendline breaks it doesn't make sense for me to be in the position anymore, since the trade is solely based on the trendline. Furthermore, the take-profit areas of the trade are based on historic resistance areas. The highest take-profit area is based on a very weak trendline, which is why I wouldn't leave more than 10% of my initial position size to reach that. This is an easy strategy for trading any asset, that anybody can use no matter how experienced. Experienced traders also use this strategy. In my own opinion, simple strategies are the best; you'd be surprised how few indicators experienced traders use. Feel free to ask any questions or share your thoughts about this strategy! 📝
Education
by kaspertrades
ETHUSD Weekly Overview 3/26ETHUSD WEEKLY OVERVIEW 3/21 - 3/26 In this video I go over my personal perspective on the opportunities Ethereum presented throughout this week. There were 2 amazing entries that were presented totaling over 350+ points! The first setup averages around 250 points and the second was around 100 points. My first entry was at the 1780 key level and the second was around the 1700 whole level. The entry was also given extra confirmation based off the Fibonacci key levels. My initial targets were fibonacci extensions leading all the way towards the -618, around the 1550 price point. There are times where price presented hundreds of points and then pulled back before continuing the overall trend. It is important to always secure some type of profits on a trade when you are significantly ahead. Never leave any money on the table or turn a winning trade into a losing trade. Even if your entry gets stopped out, continue working that zone over and over until the analysis invalidates itself. The level must prove that it is valid before having real confirmation that it may continue. My style of trading uses Market Structure, Price Action, Fibonacci, Wave Sequences, Moving Averages , and a mixture of Multi Time Frame Confluence . Most importantly the visual realization of emotions cycled into the chart. As always THANK YOU and if you found this video helpful, please let me know by hitting that like button and/or leaving me a comment below. Also, feel free to share your opinion on this setup or other setups that you have. The more ideas we can generate together, the more informative these ideas become for newer traders. STAY PATIENT & STAY BLESSED! ~T$
BITFINEX:ETHUSDEducation
by OkayTrev