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BTC September Historic dataLooking at the past doesn't guarantee certainty for the future, but it can give us a good idea of what might happen. Looking into the price action of the last 8 years of Bitcoin's history, we can see that the performance is not that great. The price action in September has been either sideways, or sideways with some downwards momentum. Comparing the historical data to predict the future, it's possible that mean reversion strategies could yield good performance while challenging the trend following strategies. On the other hand, in the past, we don't see high values of market noise which is great for breakout strategies. If we dig deeper into the lower time-frames there are clear trends and smaller breakouts. (This would be another opportunity for lower time frame strategies). September will be an outstanding test for the different strategies because market cycles, so far, have shown different behavior than in prior years. Pre-Sep 2021 Insights: BTC didn't have a significant rally since the dump of May/June, however, there is RSI divergence (slowing momentum), and MACD was still bearish; on the other hand, BTC will face the ATH wall soon. Last year, before September we had a strong move that ended up with a correction and choppy market conditions in September. There are some similarities between pre-September of 2021 and the other years, for example, RSI divergence, strong moves in prior months. It will be interesting to see how it will play out and if the similarities will keep up. Explanation per Year: 2020 In 2020 after the March dump, BTC had a strong rally until August and September was the cooling-off of that move. Also, the RSI continued making lower highs while the price was making higher highs, giving the indication of a trend reversal. 2019 Sept 2019 had a different story but the outcome was kind of similar. Dec2018 to March 2019 we saw the accumulation phase after the bear market and when the price started to move the rally was almost vertical; Vertical moves are emotional moves and normally don't last long. September arrived while prices keep falling to make higher highs and end up with a dump in September. The market structure from 2019 differs from 2020 but the outcome is similar, sideway-move and/or crash 2018 In 2018 we came from the 17 Dec 2017 ATH right at the end of the bear market. Price tried to break the EMA21 week and failed, giving continuation to the bear market. Price once again was choppy after a small rally confirming EMA21 week as resistance (once again). 2018 situation was different from 2020 and 2019 but the September outcome was similar. 2017 In 2017 the similarities are probably more noticeable since we were in the middle of the bull market preparing for the last move. On the other hand, in 2017 there was no death cross and we didn't see the price action going below the EMA21 week, not MA 200. The move from March to August was strong, way stronger than in 2021, but we had the correction here and the RSI divergence was there as well. 2016 In 2016 BTC was right in the middle of the bull market and after a rally, the price came to the mean support areas and consolidate over September after a good V shape recovery.
BITSTAMP:BTCUSD
by Tuned_Official
SNXUSDT Adam & Eve Double BottomsAdam & Eve Bottoms SNXUSDT has formed Adam &Eve double bottoms as seen in the chart. Left Bottom which is in slightly curve shape like V forms Adam because this slightly curve shape shows only Wicks of candlesticks whereas their bodies are above to that point and formed a V shape Which indicates Adam because in Adam bottom only wicks of candlesticks reaches to a certain levels or zones whereas their bodies are present above as shown in pattern at 11.114 . Now, if we talk about right bottom as shown in the chart then candlesticks has formed Eve bottom because Eve bottom is formed in curve shape such as U shape but not U where most of the candlesticks are present with their bodies somewhere at the same levels or zones of Adam bottom. After forming a curve like U shape indicates a trend reversal from bearish to bullish. When both bottoms are formed then we check the previous price action from where rejection was faced and results in double bottom and draw a trend line at that point which is called as Resistance as shown in chart at point 12.329.Now just wait for the breakout and retesting as shown in chart because double bottom indicates bullish trend. After retesting its resistance will be its support level and we will open our trades where their are different points for TPs. TP points 13.276 13.827 14.335
by Ahmed_51
Spot Trading vs Margin Trading Pros and ConsSpot Trading is the most basic form of trading method and is the most suitable for beginners in trading. It's simply a BUY > HOLD > SELL mechanism. On the Other Hand Margin Trading is complicated and should only be done by experienced traders. There are various components to margin trading such as Maintenance margin, margin calls, leverage, and liquidation. Pros and cons of Spot Trading 👉Spot trading is easy to learn and understand and is a good starting point for beginners in Trading. 👉It's an easy process to manage risk in spot trading not taking all the complications of liquidation or margin calls. 👉You can hold an asset for a much longer time and in the case of cryptocurrency can also transfer to any cold wallet. 👉No Trading happens during downtrends. 👉The potentials gains are not very good on a smaller investment amount. Pros and cons of Margin Trading 👉Margin Trading needs some advanced knowledge of various things such as margin calls, liquidation, leverage, etc. Hence it's not recommended for new traders. 👉You can make profits on both uptrends(by going LONG) and downtrends(by going SHORT). 👉Gives an ability to trade much larger amounts with a relatively small initial investment by using leverage. 👉Margin Trading is risky, and if not done properly can blow your account in a very short time span. 👉Profits are higher when utilizing margin trading, and so are the losses. Every exchange has its own rules for margin trading, which need to be understood carefully before investing. Thanks for reading and what kind of trading technique do you use and why? Share in the comments below. For more similar educational ideas, scripts and trend analysis follow us. Happy Trading.
Education
by Tuned_Official
22
Bollinger Bands. An imperfect strategy for an imperfect world.I have seen and tested many strategies in my trading history but I have yet to find anything that can guarantee a 50% or higher win rate (And that 50% rate is before fees and taxes!). Bollinger bands do not provide a competitive edge, but rather, provide something more important to a retail trader. Clarity. Bollinger bands are based on the standard deviation of the price of an asset at the current point. Standard deviation (std dev) is based on normal distribution. If you dont know what this is, thats okay. All you need to know is after 3 std dev 99.7% of prices are included. This can be used as an imperfect probability metric as only 0.3% of price points over the last 200 days lay outside of the green bollinger band shown above. Regardless of biases, news and other such factors, bollinger bands can be used to guage whether a liquid asset is cheap or expensive. As seen on the graph above, everybody's favourite asset (BTCUSD) can be traded with this simple 200 day bollinger (3) and (4) on daily price metrics. However, don't use indicators as a ground rule for strategies. Low liquidity assets and small timeframes significantly reduce the effectiveness of bollinger bands. Furthermore, I would not use bollingers for shorting or leveraged positions as the price has no obligation to obey its standard deviation metrics. I recommend using bollingers on a spot position of liquid assets as displayed in the above graph. (Notice "position" not "Whole account" as all strategies should be)
BITFINEX:BTCUSDEducation
by Piggiiieee
5