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How to use Anchored VWAP There's considerable confusion about the practical use of anchored VWAPs. Personally, I leverage them as genuine resistance/support lines due to their integration of volume. Consider the 2021 LTC top around 397 USD, often perceived as the resistance line prompting many to exit. However, in my Anchored VWAP trading approach, the true resistance stands at 136 USD. A sustained break and successful retest of this updated line indicate potential for prices surpassing the 2021 highs. Likewise, the 2022 bottom at 43 USD served as support or resistance in various periods, now residing near 75 USD. From my perspective, the current LTC price seems below the prior 2022 lows, suggesting bearish control. I recommend NOT A BUY until we securely close above this price resistance. Follow for more!
BINANCE:LTCUSDEducation
by DEFI-trader
Measure Reward-to-Risk Ratio (RRR) key Takeaways 1. The risk/reward ratio is used by traders and investors to manage their capital and risk of loss. 2. The ratio helps assess the expected return and risk of a given trade. 3. An appropriate risk reward ratio tends to be anything greater than 1:3. How to Measure Reward-to-Risk (RRR) ? 1. Evaluate the potential price levels for your stop loss (SL) and profit target (PT) 2. Measure the distance between your entry and your stop loss (SL). This is your “Potential Risk“. 3. Measure the distance between your entry and your profit target (PT). This is your “Potential Reward“. 4. Divide the two: Potential Reward / Potential Risk. RRR Calculation 1. Potential Risk = 66.24 - 63.73 = 2.51 2. Potential Reward = 63.73 - 54.97 = 8.76 3. RRR = Potential Reward / Potential Risk = 8.76/2.51 = 3.49
BINANCE:LTCUSD.PEducation
by yaser_rahmati
⚠️ HOW TO LOSE your money in a day? ⚠️Hey guys, I know I've made a chart like this before, but this version is more complete. We all see too many people having the satisfaction of losing their money every day and sometimes it happens to us too. I think it's best if we share with other people how it's done. There are 10 effective and original ways to do this: 1. Panic Sell: This one is a classic. They say "10 years in the forex & stock market is 1 day in the cryptocurrency market". That's because this market has too many changes in a short time. Bitcoin literally can pump or drop more than thousands of dollars in 5 minutes, and that's when people start the Panic Sell. They start to think: what if it drops even more? What if it touches ATH now that I opened my short position? Well, that doesn't necessarily happen all the time. Currencies like Bitcoin have large price ranges and every single move might look like a big thing. But it isn't! 2. FOMO Buy: Classic #2! OMG, this new coin just pumped ten times! Ethereum is pumping. What if it reaches 10K? Cardano passed $2. I should get a ton of it and sell around $2000! Bitcoin is going to reach 1 million dollars this weekend! If something pumped so high that it got your attention, don't you think it's a bit late already? (I think I made my point here) 3. Don't use Stop Loss We all know how it feels waking up to see that the market touched our Stop Loss and pump right back up. Using Stop Loss is very important if you want to protect your assets. If you're willing to protect your positions then you should learn how to play with them, control the risk, know the dangerous zones, be aware of the price range. If your coin's value is dropping under the predicted area, using SL isn't a bad idea! If you're a true player, then you can recover in no time. 4. Use high leverages I WANT THAT 50 THOUSAND DOLLARS RIGHT NOW! I'll just set my leverage to 125x. I'm sure Binance won't mind it! Guys... The safest leverage amounts are 20x or below. If you can't afford to lose the money you shouldn't open a position with more than 20x. Give that price range a little room to breathe. People who are more confident about their forecast and predictions use higher than 20x up to 75x or even 100x! The higher the leverage, the more risk you put your portfolio at. 5. Buy new hype coins I love this one! I see it every day. That CEO launched a coin. This CTO made a spite coin. That guy with a big Twitter account mentioned this name. That coin is named after a dog... I LOVE DOGS! PEOPLE! This is your money we're talking about...! You worked hard for that money, right? Who's to say if these rummers are real? Why would a hype coin overtake Ethereum just because someone tweeted about it? There are better ways to lose your money. Please don't use this one! 6. Get greedy Classic #3. I earned 20%... now it's 32%, should I close it? What if it goes even higher? What if I close my position now and it goes up to 500%? That's when we keep our positions open and then after 5 minutes, we are down 20%. Sounds familiar? 7. Draw meaningless lines on a chart You open TradingView and WOW, hundreds of charts about different coins with random lines on them. That's easy, right? I bet we all can do it. Se let's open a chart and then draw as we want... connect the dots? Make a Triangle? A Head and Shoulders on a '5 minutes' chart? I'm sure that predicts the market. Guys, we can't just paint around on charts... there are rules, there are actual patterns. Check this as an example: There are more than 50 good patterns that can be used to predict the market in different time ranges. So that's it... Draw your favorite lines and predict the price AS YOU WANT IT TO BE, and lose a little money here too. 8. Don't use Fibonacci I'm sure too many experts won't agree with this. But Fibonacci can help Futures traders a lot. You can just put it in the right time range and use it to find the key resistance and support levels. This method is amazing if you want to study a coin before entering for short-term trades. If you don't, you might end up doing a FOMO Buy or Panic Sell, which helps you lose even more. 9. Believe that you are the smartest person in the room All I'm saying is that some people do NOT let other ideas come in. They have a confidence level is amazing. Well, that's not a bad thing, but at least listening to what other people have to say might be a good idea. Maybe they're playing the right card with a different perspective we can't see. 10. It's your turn. Complete the list. Tell us about all the other ways you know... Share your experiences. Thank you for your attention.
Education
by ShawnMCR
31
What Is a MACD Indicator?Moving average convergence divergence indicator (MACD) refers to a momentum oscillator used for a trend following trading strategy. There are two lines, a MACD line and a signal line. When the MACD line crosses above the signal line, MACD is signaling a bullish trend. The MACD line is calculated by subtracting the 26-period EMA (exponential moving average) from the 12-period EMA. The signal line, on the other hand, is just a 9 period EMA line. While most technical indicators only provide a single piece of information about historical price data, the MACD indicator is a versatile 2-in-1 indicator that gauges trend direction and the strength of a trend at the same time. In this article, we will study the MACD indicator in detail and share some advice on how MACD can be used in cryptocurrency trading and how to identify potential MACD buy and sell signals. Invented by Gerald Appel 1979, MACD can help investors calculate the direction, length, strength and momentum of a given asset’s price. MACD Indicator Explained in Detail: MACD is a trend-following momentum indicator that is part of the oscillator family of technical indicators. It allows you to: Assess the current trend direction (bullish or bearish) and predict where the price is more likely to go, based on the relationship between two moving averages. Measure the rate of change of cryptocurrency prices, aka the speed of the trend or its momentum. The MACD momentum readings are useful if, for example, retail traders want to assess the strength or weakness of a crypto trend. On a price chart, the MACD indicator looks like an oscillator with two moving averages, except without specific boundaries such as the most common oscillators (Stochastic and RSI) have. An additional MACD histogram overlays the two moving averages, which completes the indicator. To understand what MACD is and how it works, we need to learn the meaning of the moving average (MA) first. When talking about cryptocurrency price movements, MA represents the line on a graph that shows the average value of data collected over a defined period of time. Traders categorize MAs into two key types: simple moving averages (SMAs) that process all input data equally, and exponential moving averages (EMAs) that grant more weight to the recent data. MACD relies on the latter, as they provide data that is more relevant for making decisions whether it’s worth buying or selling the asset. Perhaps the best characteristic of the MACD indicator is its simplicity, as the signals it provides are obvious even to total newbies. However, it’s worth remembering that one should never make a decision to buy or sell some specific coin by relying solely on one signal. MACD can be a great addition to other trading signals such as Stochastic or RSI indicators. Some details about RSI will be given later in this guide. How MACD Works? In order to understand how to use an MACD indicator, it’s important to understand its particulars on a graph. The MACD indicator is comprised of three key components: The MACD Line — the fastest moving average (short-term EMA) The MACD indicator formula is calculated by extracting a long-term, 26-day exponential moving average (EMA) from a short-term, 12-day EMA. It is usually colored blue. MACD Line = (12-day EMA minus 26-day EMA) The Signal Line — the slowest moving average (long-term EMA) This is a 9-day line designed to show the turns of the price action, usually painted in red. Signal Line = 9-day EMA of MACD Line The MACD Histogram — fluctuates above and below a zero line, which helps to identify bullish and bearish momentum readings The histogram is the difference between the first two elements (MACD line minus signal line). When MACD is above the signal line, the histogram is positive, and vice versa. Thus, in order to read the signal correctly, one should check the following: When MACD is positive and the histogram is increasing as well, this serves as a sign of increasing momentum. The price tends to grow in this case, which can be interpreted as a “buy” signal. Alternatively, when MACD is decreasing together with the histogram value, it signifies that the price is most likely dropping and the asset should be sold. In the next section, we will provide a more detailed explanation of how to read the MACD signals.
Education
by MonoCoinSignal
Learn to Read Chart (MACD & XRP)✅ The MACD line is the 12-day Exponential Moving Average ( EMA ) less the 26-day EMA . Closing prices are used for these moving averages. A 9-day EMA of the MACD line is plotted with the indicator to act as a signal line and identify turns. The MACD Histogram (Below the chart) represents the difference between MACD and its 9-day EMA , the signal line. The histogram is positive when the MACD line is above its signal line and negative when the MACD line is below its signal line. ✅ MACD's formula: MACD = 12-Period EMA − 26-Period EMA ✅ MACD is often displayed with a histogram which graphs the distance between the MACD and its signal line. If the MACD is above the signal line, the histogram will be above the MACD’s baseline. If the MACD is below its signal line, the histogram will be below the MACD’s baseline. Traders use the MACD’s histogram to identify when bullish or bearish momentum is high. ✅ The box below the chart has 2 lines which alert traders when a crossover happens: Crossovers are more reliable when they conform to the prevailing trend. If the MACD crosses above its signal line following a brief correction within a longer-term uptrend, it qualifies as bullish confirmation. If the MACD crosses below its signal line following a brief move higher within a longer-term downtrend, traders would consider that a bearish confirmation. ✅ TradingView lets you use the MACD for fast and easy forecasting. You can find it in Indicators & Strategies (f(x)) above your chart.
Education
by MonoCoinSignal
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
How to assess an altcoinWhen doing fundamental analysis into a stock or in this case a coin – you need to appreciate, it is still a company after all. So, your fundamental analysis should include, taking a deep dive into the available information. You might want to review the project use case, the team, and the money the project has raised so far. As you can’t really do technical analysis with limited data available on the charts. Your goal is to reach a conclusion on whether the asset is overvalued or undervalued. At that stage, you can use your insights to inform your trading positions. In other words, have we had a major hype & can a dump be expected? Trading assets as volatile as cryptocurrencies requires some skill. You will need to define a strategy – otherwise, you are Gambling & not trading or investing. As for Technical analysis, some expertise can be inherited from the legacy financial markets. Many new crypto traders use the same technical indicators seen in Forex, stocks, and commodities trading. You often see tools such as the RSI, MACD, and Bollinger Bands which seek to predict market behavior, the issue with this is the lack of data mentioned above. Yet, these technical analysis tools are also extremely popular in the cryptocurrency space. Slightly harder to read a moving average when the price is in a 90-degree move up. With cryptocurrency fundamental analysis, though the approach is similar to that used in legacy markets, you can’t really use tried-and-tested tools to assess crypto assets. To conduct a proper analysis, what we need is to understand where they (the company/Coin) derive value from. ==================================================================================================================================== For you newer traders… “What is fundamental analysis (FA)?” Fundamental analysis (FA) is an approach used by investors and traders to establish the "intrinsic value" of an asset or business or in this case, crypto. By looking at a number of internal and external factors, their main goal is to determine whether said asset or business is overvalued or undervalued. They can then leverage that information to strategically enter or exit positions. The goal of this article is not to dive into the methods of FA as a whole, rather just to highlight where you should begin. ==================================================================================================================================== However, there are problems with crypto fundamental analysis (in the traditional sense) Cryptocurrency networks can't really be assessed through the same lens as traditional businesses. If anything, the more decentralized offerings like Bitcoin (BTC) are closer to commodities. But even with the more centralized cryptocurrencies (such as those issued by organizations), traditional FA indicators can't tell us much. So now we are stuck between a rock and a hard place… A quick step would be to identify strong metrics, these should not really take into account things like Twitter or Facebook followers. It’s so easy these days to buy several thousand followers for social media sites. One method could be; the number of active addresses on a blockchain and see that it has been sharply increasing? For example… Are we seeing Company actors transferring money back and forth to themselves with new addresses each time? This is the level of info you can go down to – we are on the Blockchain after all. A little more TECHNICAL If you want to get a bit more technical – you can look at “On-Chain” metrics in depth. On-chain metrics are those that can be observed by looking at data provided by the blockchain itself. By running a node for the desired Crypto and examining the data, this can be time-consuming and expensive. Particularly if you are only considering the investment, and don't want to waste time or resources on this process. A simple way to do this (in some instances) is to use API-based solutions, plug into exchanges, and see third-party tools such as Binance-research's project reports. Look for info such as; 1) Active Addresses 2) Transaction value 3) Fees – this will give an idea of the demand… Other areas as mentioned above You are looking to ‘invest’ in a tech company, which is the longs and shorts of it. So go and read through the whitepaper. Assess use cases, do they make sense to you? Review the team, do they have experience or have they already raised finance enough to keep the project going – you can now use the chain metrics – to see money flow, you could go and look at the companies register, in the UK all companies are set up under “companies house” this will show shareholders, early account info, company directors. Other factors How about competition in the space? What projects are offering similar solutions, are the other companies further along? Does the company you are looking at, have some kind of USP over their competitors? Supply Mechanisms – Liquidity and volume – Market Cap. These are all things to take into consideration . And Finally - Initial distribution and Tokenomics as a whole A lot of projects have created tokens as a solution looking for a problem. Doge on the other hand created a meme for the market, which is turning into a solution. Understanding the use case, cannot be stressed enough. As such, it's important to determine whether the token has real utility. And, will it have decent adoption? Consider how the funds were initially distributed. Was it via an ICO or IEO, or could users earn it by mining? The whitepaper should outline how much is kept for the founders and team, and how much will be available to investors. If it was mined, you could look to evidence of the asset's creator pre-mining (mining on the network before it's announced). We have a live stream Monday at 3:30 GMT with @Paul_Varcoe 📺 www.tradingview.com 📺 As I said, this is only to give you a starting point - especially for you newer traders. There are several other factors & methods but start here.
Editors' picks
Education
by Mayfair_Ventures
33
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
One Trillion Market CapI've been curious as to what players would be involved to have the Crypto world have a one trillion dollar market cap. Looking at the top 20 coins, it looks as though we sit around $600 Billion, so less than a doubling of the current market. I truly believe the "FOMO" hasn't even arrived in the market and once they catch on that we'll see the trillion dollar mark by at least the end of 2018, if not earlier. The Crypto players that will be a part of this will involve a handful picked out from the top 20. 2018 will not only bring new dollars into the arena, but will also separate the good coin from the bad. Something has to give in regards to having a couple of thousand coins...mostly fluff coins with no apparent reason to exist other than to scam and tarnish the good products here. The former big three (BTC, ETH, LTC) will still be around, along with some new comers such as XRP, MON, IOTA...however, in what capacity they contribute to that trillion dollar market cap will be the interesting thing to watch as 2018 progresses. Happy trading!
BITSTAMP:BTCUSDEducation
by thinzman
2
LTC / BTC Positional Trading The long-term trading channel 190%It is also worth noting that the coin is relevant for trading now! Now we are in an important zone from which long-term movement is decided! 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). _________________________________________ 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
3
LTC continues to push down!!LTC has been in a downwards trend for quiet sometime now. I am currently watching this current demand block. if we break though it we should see a move down to the next demand zone or even a touch and bounce off it. that's when I will be looking for longs. no trade just yet. if we tweezer bottom off the support then I will be looking for longs after a break in the trend we also haven't seen much of a consolidation on this m20 chart LTCM20 4hr
LEducation
by CryptoTennille
Pyramiding money management. 2 part. Short LTC/USD This is the second part of the training material on the method of capital management - pyramiding or scaling as it is also called. Let me remind you once again in the first part of working long with an uptrend, we earned $ 20,000 - $ 52,000 time. Read more about the process of working in long in this trading idea: Pyramiding How to earn 52000 with a risk of 5% from 20000 1part After the breakthrough of the upward channel and exit from a long position, a downtrend and a downtrend are formed for us on the LTC / USD pair. Here is my idea for June before breaking through the rising channel. LTC / USD June The trend is broken. A downtrend and a downtrend formed. Here is my trading idea for August: SHORT LTC uptrend is broken. Trading in the downward channel. LTC / USD August ______________________________________________________ Let's go back to our example of LTC / USD money management by pyramiding in a downward channel. When working long in an uptrend, we earned $ 52,000 on this coin from an initial deposit of $ 20,000 . Round up to $ 50,000. Divide the amount into 3 parts of the entrance. A less risky entry point is the first, like a coin at the beginning of its downtrend and a big profit from the uptrend. Therefore, the first purchase will be a large amount. First purchase - $ 30,000 Second purchase - $ 10,000 Third purchase - $ 10,000 Stop loss is always 5% and moves behind the price of a downtrend. Stop loss should always be behind the downtrend line. (outside the upper boundary of the downward channel). Breaking it will mean a potential change in trend. _____________________________________________________ As a result of currently open trading deals, we have a profit: 1 purchase for $ 30,000 + 42% = $ 42,600 (net profit $ 12,600) 2 purchase for $ 10,000 + 19% = $ 11,900 (net profit of $ 1900) 3 purchase for $ 10,000 + 0% = as soon as we opened a deal (there is now an option to break the downtrend). The risk is always 5% The total net profit of work in the downward channel is currently + $ 14,500 $ 6,400 total position ______________________________________________________ If all 3 sales target work out as planned, then the potential from the entry point: 1 purchase - $ 53400 (net profit of $ 23,400). 2 purchase - $ 17,000 (net profit of $ 7,000). 3 purchase - $ 16,200 (net profit of $ 6,200). Total short profit: $ 86,600 (net profit $ 36,600). _____________________________________________________ If we take into account the work in an uptrend that we started with $ 20,000, then the net profit is $ 66,600 and this is on the same coin with a 5% risk and during this period we will only make 8 transactions. This is not fantasy, this is reality. I worked like this for more than a year on the ETH / USD pair in the downstream channel, all the ideas and work in the channel were published in my chat, also partially had ideas here, for example this one for December 2018 I complicated the work a little, but I increased my profits several times, I worked from trending channels. Also, most of the trading transactions were made from the trend lines of the internal channel. This trading idea for December 2018, but I started trading this downward channel from March 2018. ETH / USD _______________________________________________________________ Money management by pyramiding or scaling. The pyramiding method of money management (scaling) today is very popular among traders with experience. The essence of this method is the sequential opening of several transactions on the trend. We increase our position as profit grows, not loss. Pyramiding method of money management is perfectly combined with a positional trading strategy. Also, this method increases the deposit well when a trader trades in upward (long work) and downward channels (short work). Pyramid trading is a strategy that involves adding a new position to an existing profitable position. In other words, these are purchases or sales in order to add to an existing position, after the market has developed movement in a profitable direction for you. You are increasing your position. At the same time, the size of each next transaction may change taking into account the result of the previous one, that is, the position increases when you make a profit in the previous transaction to increase the deposit at a faster pace or after receiving a loss to accelerate the exit from the drawdown. This is the main advantage of using pyramiding in trading. If you did everything right, then do not expose your trading capital to additional risk. In fact, you reduce risk as the market moves in a profitable direction for you. The main thing is to correctly determine the trend and "sit" on it. The most difficult moment is to determine the beginning of a trend. On a bull trend it is better to always work on the bull side; on a bearish trend , on a bearish side. Always follow the trend! However, just as pyramiding can be profitable, it can also be dangerous if used improperly. The main thing is to determine the trend correctly. Many experienced traders consider this method the only possible way to quickly disperse the "deposit". One well-defined trend lasting only 1-2 weeks can double, triple the deposit with the right approach. Moreover, the risk is only 2% -5%. It is very important, do not confuse averaging and pyramiding, since these two approaches are completely different. Averaging occurs when the price goes against our position. And pyramiding is the other way around when the price is in your favor. Pyramiding allows you to achieve a super effective profit / risk ratio by transferring stop loss as the trend moves in your favor. ______________________________________________________ How to carry out a set of positions according to the trend, when to enter. Another important issue in pyramiding is: when do you actually enter a deal, gain a position more? The answer to this question can be divided into several approaches. Each of them has its pros and cons and in different situations will give different results. Just who is comfortable and who is more used to what they trade. Entrance to the transaction during the construction of the "pyramid": 1) On kickbacks. 2) On signs of continued movement. For example, it can be a powerful volume entry or a hammer candlestick pattern. 3) During the breakdown of important levels. ___________________________________________ How to use stop loss when building a "pyramid". Naturally, with pyramiding, stop loss is used. It is recommended to use a separate stop for each entry (to buy the position). As the trend develops, it should be pulled up. For example, I use 2 stop loss. Regardless of how much I had as the trend of inputs on kickbacks grew. The first is the top, which is about 30% of the entire position. As a rule, it is equivalent to the stop loss level of the last entry (buy by trend). The second is 70% of the position, this is when the trend breaks. Both stop losses are tightened as the trend grows. It is logical to use stop loss outside of some important levels. The trader as a whole should decide on the overall risk that he is ready to bear. For example, it is 3% -5%. Therefore, it is necessary to calculate the following positions in such a way that, taking into account the profit of the previous steps, compensate for the loss of the subsequent ones and keep within 3% -5%. You need to understand that with the correct determination of the trend, and the correct scaling of the pyramid, a loss of 3-5% is purely arbitrary, as long as you have a stop knocked out, you can already double or triple the total profit. The main thing with the price increase is not to forget to tighten the stop loss. And so put so that they are not knocked ahead of time. As a rule, I go out when stop loss is touched, just two, as the first one can knock out, and the price can go up further. It is also worth adding that sometimes on some coins due to their volatility , their feet are knocked out by 5%, so that this does not happen, the size of the stop is not so important as the moment of entry. ________________________________________________ Profit taking. How to take profit when managing money using the pyramid method? There are several different methods of closing positions: 1) According to the planned profit. For example, you planned to take profit + 100% from this tool. You have reached your take profit. We left the position, took profit and forgot about this tool. 2) With a slowdown in profit growth. For example, you have already doubled the profit on this trend and this is quite enough for you. The trend has moved in a lateral movement, profit is not growing, or growing slowly. It is more advisable for you to close this profitable deal and transfer the profit to the trend that is emerging, thereby building a new "pyramid" on a more rapidly growing trend. 3) At the first sign of a trend reversal. Not breaking through important resistance levels, reversal patterns, breaking the trend line . 4) By tightening stop loss. Knocked out stop loss. Depending on which stop loss ordering technique you use, either single or fractional for each entry separately. Stopped, took profits and forgot about this trading tool. They began to search for a new instrument with a good entry point at the stage of trend emergence. Started the construction of a new "pyramid". In my opinion, a reasonable solution is to partially take profit at some maximum levels with the trend growing. I am also part of the position about 30% aggressively trading increasing the asset. An important point at local maximums I sell these 30% almost completely, I already shop a large amount of assets from the support if I trade in an uptrend. As the trend progresses, I constantly pull up the lower stop loss (main position). 70% of the position is exited when the trend unfolds completely. _______________________________ Benefits of money management by pyramiding or scaling. Pyramiding works well with strong steady trend movements. The advantages of pyramiding: 1) the bistro is increasing the deposit. 2) minimal risks, and with the development of a trend, there are no risks. 3) psychologically comfortable trading due to the absence of great risks. _____________________________________________________________ Disadvantages of money management by pyramiding or scaling. As you already understood, pyramiding works well in the trending market. If the market turns into a flat or a trend movement is accompanied by deep pullbacks, then the pyramid can be destroyed very quickly. On few liquid, weak instruments, this method does not work! On cryptocurrencies, this method only works on TOP. Coins such as BTC , LTC, ETH. This method does not work: 1) In lateral flat movement. 2) With a weak trend. 3) In a trend with deep pullbacks, in which there will be uncertainty about further movement and they will knock out stops. _______________________________________________________________ We all heard the well-known trade axiom: reduce your losses, and give the opportunity for profit to grow. This is the aspect of money management in your trading system that issues major winners. Money management throws aside the subjective sensations present in people. Richard Dennis
BITFINEX:LTCUSDEducation
by SpartaBTC
BITCOIN vs LITECOIN comparison. Bull market leader shift.Just a quick mention on something interesting I stumbled across while constructing my long term LTCBTC strategy. During the 2015 recovery phase after the bear market, Litecoin started rising aggressively prior to Bitcoin and led cryptos into the start of the new bull market. At some point it pulled back considerably and BTC started gaining momentum and lead the bull market while LTC entered a prolonged consolidation period. BTC made minor pull backs but never "looked back" on its way to a parabolic rise to the 2017 All Time High. This is a simple comparison intended to illustrate the shift in market dynamics. We see the very same situation taking place now.
BITFINEX:BTCUSDEducation
by TradingShot
2
Please pay attention to the short term risks of LTCI have analyzed the trend of LTC before. Here is a typical channel pattern, and the top is superimposed with the trend line and the upper track of the channel. When the macd index deviates, the pressure is obvious. Short term is not the best opportunity to enter the market, but it is also not a short chance. I have talked about this situation many times before, some people feel that the rise is too big to short, which is very dangerous, the current strategy should be wait and see. Wait for a clear signal. Strategy: wait and see
LEducation
by peter-l
1
Nailed it! Take the money and run approach to Current Crypto I've seen this happening a lot lately (past few weeks). There is good range on some of these wicks on the short term time frames! Its only about 2 percent but these are easy if you are watching. I simply set a buy 1 historical resistance line under the current historical resistance. THEN SET AN ALERT at your buy price. If the price drifts down pull your order. But if you hear your alert randomly, go sell. Quick 2%. DO NOT let these positions ride. Sell immediately. This is a very simple strategy to execute if you have quick access to this site and your exchange. You can even set an alert with a different sound to remind you to pull your order because the price is drifting. PLEASE LIKE AND SUBSCRIBE IF YOU WANT MORE LIKE THIS. PS: I am not a licensed adviser. ALL my posts are simply my opinion and game plans.
COINBASE:LTCUSDEducation
by Noxtreme