🔥Why does a bear market make traders rich?🔥 Why does a bear market make traders rich? The answer is very simple. All really rich people can buy any asset at a big discount. In crypto this discount can be up to 80% and sometimes more than 95%.
📊 But why is it a bear market and not a bull market that makes traders rich?
A bull market helps active traders (scalpers, swing traders) a lot, especially to quickly build up their capita l if they are trade follow the trend.
Also, it`s a good time to study trade and when the real bull market return you will be highly prepared to this!
🚩 While the market is out of trend and certainty, the biggest upside potential for cryptocurrency is at the end of a bear market, as it was in: 2017, 2019, 2020 and possibly now in 2022.
Never can crypto give more profit than the one bought at the end of a bull market. For example, Bitcoin at $3200, which rose to $69,000. That's 20x to your deposit. And you just need to buy close to the bottom (green areas).
📊 Which strategy should I use to buy crypto?
The best strategy for that is DCA. This strategy helps to get an average buy price over a certain period. That way you won't make the maximum profit, but you won't incur huge drawdown when buying crypto.
In the following tutorials I will tell you about the DCA and the advanced DCA used by professionals to buy crypto on the spot.
🔥Also you can check the Greendwhich indicator that help to BUY crypto at the bottom and sell close to the HIGHS. The additional module helps to increase the number of crypto during the bull market growth.
✅ My recommendation is not to buy more than 30% of altcoins on spot because 95% of them will disappear forever after a bear market.
✅ I suggest focusing on buying Bitcoin and the biggest altcoin Ethereum. They should be the biggest part of your portfolio if you want to buy cryptocurrency on spot (long term).
🚩 Write the comments, if you have a question about this topic. Do you agree with this idea or have smonething to add about the highest possible profit?
💻Friends, press the "boost"🚀 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
Btc!
Bitcoin Cycles Explained (Elliott Wave Theory + NVT Indicator)Hello Traders. In this post, we are going to revise our Elliott Wave counts and also go into a deeper dive of how we can interpret the current decade cycle for Bitcoin. I am going to do my best and divide each section by using past cycles, Elliott Wave Theory, and one indicator in combination to help validate my point of view on where Bitcoin might be heading for the next cycle. If you haven't already, please do make sure to read my post on parabolic patterns and how I was able to predict the the 2021-2022 bullrun:
As stated above, the three factors that I will be covering on how we can dissect the next Bitcoin cycle is:
1) Cycles (growth cycles according to the halving cycles)
2) Elliott Wave Theory + Market Psychology
3) NVT Indicator (Network Value to Transaction)
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1) Cycles (growth cycles according to the halving cycles):
One of the biggest phenomenon to ever occur in the current financial market period is that Bitcoin has been working in a relatively algorithmic parabolic trend where cycles have been continuing in a compounding matter in terms of percentages. That begs the question, “are we going to assume that all past cycles will rhyme with the current cycle?” This is impossible to answer, but, we can take the time and try to predict cycles within cycles by discerning the growth phase of each cycle, and whether it will transition into something new, or, continue the fashion of rhyming cycles of the past. The best way to interpret Bitcoin's price action is via the logarithmic chart which shows the overall square root function of each cycle. Simply put, realistically, the log chart is slowing down on the longer timescale, meaning that Bitcoin is now currently in its fourth phase as shown in the chart - price maturity and store of value. Price maturity is shown in most stock models, meaning that markets do not move in straight lines and will always eventually have an end to all finite things, including price action. This chart also helps support the 'lengthening market cycle' theory, which is based on how fast the growth of a stock is shown. This idea works for Bitcoin in respect to how we cannot just continue to grow exponentially, which can then be backed by the Elliott Wave theory, which we will discuss later down below.
As stated above, the cause of these growth cycles are what I believe (and the only way we can divide it by) is done via Bitcoin halvings, which leads to a supply shock and a subsequent rally, as that has been the only way we have observed in the past decade. As stock markets have their own cycles, mostly in the form of recessionary phases, Bitcoin works more along the line of where scarcity is the main factor. As history has shown that with a lower supply, the demand for the coins go higher, meaning that the fundamental value of Bitcoin may go down, and that becomes more of a 'Store of Value' asset, just like gold. Although this chart is just an observation and educated guess, we can still assume that this chart is realistic and a probable scenario as it is calculated with a balance of market psychology, technicals, and overall market cycle theories. If we also apply Murphy's law, we will also have to assume that all good things will come to an eventual end for a cycle. This is why I have divided each trading period in terms of Bitcoin's halving cycles, as that has been a great psychological indicator of how markets have reacted accordingly to price action in terms of time. The four cycles I have witnessed, and witnessing now in regards to the evolution of the markets, can be divided as such:
a. 1st Growth Cycle - Use Case Discovery
b. 2nd Growth Cycle - Price Discovery
c. 3rd Growth Cycle - General Institutional Interest
d. 4th Growth Cycle - Price Maturity (Store of Value); Retail Interest
The first use case discovery is essentially the bare bones of the beginning of a trading period. The use-case discovery phase helps the sole investors create impactful change in the organization by bringing all investors together to collaborate. This format identifies high-value, low-effort use-cases and ensures these initiatives are being driven from the bottom-up rather than top-down. This is what has sparked the idea of currency replacement, or, as an alternative to the banking system as explained in the White Paper.
The second growth cycle is what is known as the price discovery phase. Price discovery is the over balancing result of the interaction between sellers and buyers, or in other words, supply and demand outweighs one another. This is the next process of finding out the price of a given asset or commodity and gives higher interest to the early investors as the first resistance has been breached. There is a fair chance that this is a sound project and may be deemed as viable investment. Price discovery is the central function of all markets. It depends on a variety of tangible and intangible factors, from market structure to liquidity to information flow.
The third phase is where we see enough people entering the markets to show that there is demand. As bitcoin moved higher throughout the year, the question was asked, “What makes bitcoin different now than the rallies we saw back in 2013 and 2017?” The biggest difference between this rally and past moves is that institutional investors have bought into the game, and this is seen as a crucial confidence boost for retail investors. The launch of CME Bitcoin futures in 2017, for example, and options in 2020, has helped spark massive institutional interest, and allowed investors to gain exposure to bitcoin without the regulatory, tax and custody issues facing the physical market. General institutional interest brought massive amounts of liquidity into the market by luring retail into the game as well. By this time, we can now see Bitcoin as solidified. This stage of the growth cycle is still considered to be the "early stages" of price action.
The fourth phase is what is known as the price maturity phase, or store of value phase. This is where fundamentals have been solidified to the point of no return. Everyone knows what Bitcoin is. They may not necessarily know how it functions, but it's embedded within the society and more so even in cultures. We will see people interested in Bitcoin no matter what it brings to the table in terms of fundamentals. It is now considered a store of value, which is why it is widely regarded as the digital gold. The store of value concept does not mean it's a hedge against financial markets like many are deeming it to be, rather, Bitcoin should be seen as a highly liquid and a finite asset where people will try to find a price that is deemed "fair". Due to the finite aspect of it, this creates the idea of scarcity (i.e. one BTC = one lambo) and everyone wants a piece of the pie. This phase creates the largest liquidity within the markets making Bitcoin one of the easiest and most accessible assets to trade, relatively. As Bitcoin is now in its highly liquid state, this has created a much different and indirect investment philosophy than what we saw back in 2016-2018. Most people have "hoarded" to buy as much Bitcoin as they could back in that time period. Now, it's more of trying to find the "fair value" price and continued speculation on where Bitcoin actually might bottom for the current trading period. Due to this, we can see that the Bitcoin market has fully evolved into a huge liquid asset where the masses are trying to find the price floor, making it more difficult to trade. This in return can make the cycles longer.
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2) Elliott Wave Theory + Market Psychology
Elliott Wave Theory has been a great tool to help increase the probability of predicting a larger cycle by using progressive actionary and corrective waves, in the form of 5 waves (actionary) and 3 waves (correction). There is no doubt that the Elliott Wave Theory has recently seen a surge of interest within the Crypto space and we are seeing an abundant amount of new traders trying to decipher Bitcoin through the Elliott Wave Theory. By having more people interested in trying to predict cycles via the Elliott Wave Theory, it then creates more impact on the herd psychology and efficacy of the theory, essentially increasing the percentage chance of a scenario playing out if many can agree to a collective scenario, also known as the self-fulfilling prophecy. The drawback is that it creates a plethora of open interpretations and can create a divide on which scenario is deemed viable. By understanding the theory inside out (please read my complete Elliott Wave Theory tutorial), you may have a great advantage in understanding what scenario is deemed best for you and the market.
By adhering to the rules (rules must be met within the Elliott Wave Theory) and a set of guidelines provided by the Theory itself (the more guidelines the better - but doesn’t have to meet all guidelines, hence, this is what creates variations within wave interpretations and counts), you can then create multiple scenarios that may help you narrow down a sound scenario. Market Psychology is inherently tied to each wave structure of the motive and corrective waves. If you understand the rules and guidelines, you can then use that to your advantage by breaking down each wave degree according to market psychology. Each wave degree, both motive actionary and corrective, can be seen as a story as Ralph Elliott, the creator, said himself.
How we can apply the psychology to each wave:
a) Wave 1 (Actionary) + Wave 2 (Corrective): Buying on a wave 1 of the smaller degree has always been considered to be the best time to buy, usually by hindsight. Most of the general public will not be invested into Bitcoin during this phase, no matter how bullish one may be. This is usually where you will see the most fear related news within the markets when correcting for a wave 2. Most people will collectively think that the markets cannot recover as wave 2 can be the deepest of retracements within the five wave structure. Every correction within Bitcoin’s cycle is what we can call the ‘delusional phase’, or self-deception for that matter. The first bear market that Bitcoin has ever witnessed can be seen all the way back in 2010-2011, where the cycle degree of Wave 1 has corrected roughly 93% for Wave 2, wiping out an immense amount of profits that people bought on the way up of the previous cycle.
A great example of that time period after that 93% correction has occured, can be that Bitcoin was seen by many as an insecure form of currency, had hacking issues, and just was overall considered to be a risky asset because of the sharp corrective nature of wave 1 to 2. At the bottom of 2015, we saw similar news along the lines of “Bitcoin is unsafe”, “Hacking issues”, “Bitcoin is not going to be able to recover”. The current bear cycle of 2022 can be deemed as the era of stablecoins, DEFI hacks, Mt. Gox payouts, and so forth. Wave 2’s are also very interesting in the idea that it is usually the period of time where people will usually say “I told you so”. Usually, the aftermath of wave 2’s will see even more bad news during this period of time. Due to the already harsh correction after wave 1, the price will usually not correct as hard even if the sentiment is worse than what we saw during the correction phase. A typical example you will see people saying during this time is, “This is the end for Bitcoin, and is going to $0”.
b) Wave 3 (Actionary): This is a phase where everyone can be considered a genius and is not losing money. Most importantly, this is a period where most bears have already swapped to a bullish stance. The general public is almost always a step behind the markets because of this haze of euphoria. Due to this, this creates an extreme surge in price creating the characteristic of a Wave 3, where it will be the strongest movement in terms of time and price (most often, not always). This is a period of time where the general public is also where they are the invested into Bitcoin the most (or any other asset). You will typically see investors buying in or near the top of wave 3. This is where most people will question themselves, “this is not going to end, is it?” , “when will this parabolic trend end?”. This is where the wave 4 correction usually starts to come in once the general mass is asking the same question to themselves).
c) Wave 4 (Corrective): This is surprisingly not the stage where most will call for an extreme bottom like we see in wave 2’s. Rather, due to the extreme rise of wave 3’s, most will deem this as the “healthy” correction stage because most will not sell their positions in anticipation for higher levels. The interesting aspect of market psychology is where the vast majority of people will hold through a wave 4, and will typically be in surprise when the wave 5 comes in, which helps re-confirm their bullish bias that the trend is going to continue.
d) Wave 5 (Actionary): This is most often the stage where people will be even more invested into the asset, creating the highest liquidity vulnerability of any stage. All of the problems that occurred in wave 3 rolls over into wave 5 due to most people having already entered on a wave 3 or 4. Wave 5 usually offsets the anticipation of reconfirming the bullish bias that was created from the wave 3, hence, why most people will get burned the biggest after wave 5 ends. You will typically see mass psychology saying that, “this is going to $1M per Bitcoin”.
The opposite can be applied on every bear market structure as well on the A and C waves of the larger ABC pullback for wave 2, where A and C are considered the actionary waves. As long you understand the 5 wave + 3 wave structures which can't be discussed in full detail within this post, you can then apply the exact opposite of what happens in a downtrend. For example, as stated above, I have mentioned that most people will buy into the top of actionary waves of 3 and 5. The reverse can be said for the downtrend - most people will sell off on the bottom of the actionary waves of 3 and 5 of the downtrend (also known as a capitulation phase), and instead of being euphoric like we see at top of waves 3 and 5, we see complete despair on waves 3 and 5 of the downtrend.
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So this continues to beg the question, how can we take advantage of making sure we buy or sell at the right time according to the wave psychology structure?
- Future of finance is seen at resistances, and Fear/Uncertainty is seen near supports, most typically. Remembering this will help indefinitely to your investment practices as the general public will usually be fearful during supports (Bears will also take advantage of trying to drive price down further), and euphoria during resistances or price discovery. After the 5th has ended, this is where the reset continues on each smaller 5 wave degree cycles. Those who have turned too bullish in waves 3 and 4 as stated above, the biggest mistake will be continuing to “buy the dip”, thinking it’s still part of that healthy correction like we saw for wave 4.
- Understand that if you know we are nearly finished with a 5 wave move, you are most likely transitioning into a bear market correction. Every correction of the bear market has been consisted of a 3 wave move as seen in the chart above.
- By understanding that Bitcoin has gone through vicious cycles, we have countlessly seen this happen on every cycle. The question continues to be begged, will this finally be the beginning of an end to Bitcoin’s cycle, or, will this be the continued algorithmic continuation to newer highs?
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3) NVT Indicator (Network Value to Transaction
This simple indicator has been one of the best predictors for accumulation zones for the past 10 years, and may be the only indicator you may ever really need to know when to buy Bitcoin. This answers my personal, "When Do I Buy Bitcoin?" question. The 'NVT' Indicator, is one of the most simple, yet highly effective indicators to date. This can be used to find ALL of the accumulation zones indicated by the overbought (red) and oversold (gray) territories. For simplicity:
⚪ Gray = Buy
🔴 Red = Sell
The NVT indicator excludes the ‘FAIR PRICE’ of Bitcoin, and disregards the price at any given level. It is merely used as a metric to tell you that people may be accumulating in the GRAY zone due to the inactivity of the Bitcoin network. The current bear market has brought the NVT indicator BACK into the gray zone, further suggesting that even at $20,000 levels, you may be looking at possible BUYS for the next major cycle. This is also, effectively, a Dollar Cost Average (DCA) strategy, at best. It is the value of the market cap divided by the data transactions. In simpler terms, it is the number of Bitcoins in circulation divided by the number of Bitcoins transacted at the end of the day.
In essence, the lower the value ratio, it can essentially give an extended warning signal that Bitcoin is most probably entering a period of inactivity and prolonged correction if it is in the gray zone. This can be translated to possibly as a buy signal. The reverse can be said about the NVT indicator going into the red zone. This means the activity is far higher and can indicate a signal that a prolonged period of overbought-ness can occur in the markets.
As this is merely a preparation indicator, this can help you confirm a certain bias if used in conjunction with the Elliott Wave Theory.
As with all indicators, this does have its drawbacks, hence, why it should be combined with other indicators and theories. The main drawback can be that it doesn't give a certain range of a time to "Buy" or "Sell". It is merely an indicator to tell you that, "hey it might be time to sell or buy Bitcoin".
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4) Scenarios (combining the Elliott Wave Theory and NVT indicator)
1st Scenario: If we are going to combine the rhyming cyclical moves for Bitcoin of the past decade, and speculate (assume) that we will see no real changes in corrections, we can assume that this cycle may have the biggest weight when combined with market psychology, with the added help of the NVT indicator, which is also in the gray zone. By assuming that the actionary cycle wave 3 has ended, we have to assume that the current move down is in a corrective wave. We can assume that wave 4 of the cycle degree is in its finishing stages. The correction can be either completed here, or, we can be seeing one more move down. As the current sentiment is collectively seeing this as a potential bottom zone, this can also help us stick to this scenario bias. This scenario in theory should work perfectly in retrospect if this scenario were to play out. For example, I mentioned that the biggest mistake of buying near the top of wave 3 happens the most by general investors. We are seeing to extent, actually, by a large degree, that most people are still holding their Bitcoins at a relatively high loss (can be backed by on-chain data by using the Unrealized Losses theory), and is still anticipating for more moves up. The next biggest mistake will be people continuing to hold their positions up until where wave 5 ends, or even worse, buying more near the top that will end abruptly short in this scenario. The best trading strategy for this scenario is to take profits accordingly and assume that the cycle is not going for a larger move to the upside, rather, assume that the larger 5 wave cycle is going to end near 100K as shown in the chart.
2nd Scenario: By simply adjusting our cycle waves, we can also arrange the degree waves to fit a certain bearish bias where the cycle wave 5 has ended. Adhering to the idea that we are in the market maturity phase, this can indicate that the markets are now already fully matured to the point where we can now go for the bigger correction that many may be looking for. Instead of seeing this as a shorter duration of a correction, we can also say that the current move down is just a larger 5 wave impulse creating an A Wave. The bear market rally should then follow suit, followed by another 5 waves for the larger C wave that can bring us down to levels that many would again deem Bitcoin dead. As for the NVT indicator, we can assume that Bitcoin is going to stay in the gray zone for a large extended time.
3rd Scenario: This scenario works on the idea of us being in a series of 1-2's. As we are working in a 10 year timespan, this is the least likely scenario. The only definitive backing to this scenario is that Bitcoin is going for a parabolic run that will be heavily nested for the next 5 years into uncharted territories well beyond 500K+. This would mean that Bitcoin would have to defy the next bear market for the running 5+ years or so.
I hope this has helped you! All of these ideas are combined for educational purposes by using a theory that is hard to grasp technically. In the end, no one knows where Bitcoin is really heading, but we can help alleviate that by using some of the combined techniques of theories and technical analysis explained in this post. Enjoy, and be safe!
THE MOST PROFITABLE PATTERN: how to trade liquidity collection?What is your favourite pattern in trading? Write in the comments below this educational idea. I think one of the best patterns is liquidity collection.
This pattern has become so common in Bitcoin trading that it is no longer considered unique. But if you look at the history of trades over the last year, you can see the profitability and reliability of this pattern. The number of profitable trades using this pattern is close to 100%.
🚩 To understand what liquidity collection is, we need to understand the definition of liquidity.
📊 What is liquidity?
✅ Liquidity is the ability of a cryptocurrency to exchange into fiat or another cryptocurrency. From this came the concept of high liquidity and low liquidity assets. If you can sell or buy 1 Bitcoin in 1 second. It`s a high liquidity, then you can sell unknown coin on small exchange for the whole 2-3 days. It`s a low liquidity.
Also, there are high and low liquidity exchanges. For example, you want to trade 1 Bitcoin for $30 000. On a high liquidity exchange you can do it in 1 second and 1 click, but on a low liquidity exchange, where there are simply no buyers for your Bitcoin, the trade can take more than 1 minute.
📊 What is liquidity collection?
Liquidity collection is an intentional price movement where a big player pushes the price up or down in order to get enough cryptocurrency to oprn his short or long . You can see examples of liquidity collection on the chart.
🚩 After liquidity collections, the price could fall by -50-70% and rise by >+100%. This shows how important this pattern is in trading and what profit it may give.
📊 What types of liquidity collection are possible?
There are 2 types of liquidity collection:
1️⃣ liquidity collection to buy. This happens when a big player wants to open a long trade. He pushes the price below a local low or important level to activate stop losses of long traders and buy back their cryptocurrency (their liquidity). After that, the price starts to rise.
🚩 You can see such an example on the $30,000 chart. There have been 2 liquidity collections to buy.
2️⃣ A liquidity collection to sell occurs when the whale needs to open a short. He intentionally pushes the price above the local level. By doing this he activates stop losses of short traders and he can also sell enough of his cryptocurrency to long traders who are trading a breakout of the highs.
🚩 There are a lot of examples on the chart. My favourite is the liquidity collection at the ATH and new ATH. The price fall so much and you can get good profit from 30 to 70%.
📊 How can you identify liquidity collection?
It can be in the form of a false breakout or an intentional takeout of stops like a shakeout (where a major player intentionally pushes the price to activate traders' stop-losses).
Liquidity collection happens not only on higher timeframes, but also on lower ones. Some scalpers use this pattern to trade on 5-15 min.
🚩 I decided to show you liquidity collection on the daily timeframe because these signals are more noticeable and have better results on 4h-1d timeframes. Also you can use this pattern at any crypto, Forex or stocks.
📊 Why are big players looking for liquidity?
If you're a big player, even on a highly liquid exchange it's hard for you to sell or buy >100 Bitcoins. There are simply no buyers or sellers at the price you need. To do that, the whale is looking for liquidity accumulation areas, which are very often placed below or above important price levels (local lows/highs, all-time highs, even numbers). These are the places where traders place most of their buy or sell orders and big player have enough liquidity to buy or sell crypto.
I like the example with the bread and it`s easy to understand for the beginner. Image that you need to buy bread to yout home. You can buy it at any shop. But what if you are large enterprenuer and want to buy the bread to your 100 shops? You not able to buy it in the closest shop because there is no bread (no liquidity). You have to go to the the large bakery where you can order enough bread for your shops. This large bakery is the liquidity accumulation areas above or below important price levels.
📊 What tools can help you identify liquidity collection?
What can help you understand where the price will go more than the whale's own orders? The whale places his buy/sell orders near important levels in advance, because this is his only chance to open a deal for $100-200 million or more.
That's why I use the DOM and Footprint indicators , where I can clearly see the orders of the big players. With this information I can:
1️⃣ close the trade in profit in time , before the price starts to make a pullback.
2️⃣ open a trade in the same side with a big player : put a short stop loss close to the whale's order and get a best risk reward.
You can see an example of a large whale order on the chart. One whale placed an order to buy 98 Bitcoins at $23,200, after which the price rebounded during the fall and continued rising.
🔥 Traders, how do you use liquidity collection? Write in the comments if you found this educational idea useful and going to use it in your trading strategy.
💻Friends, press the "boost"🚀 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
Strong Trading Strategy, Do not trust all the pin barsThe pin bar pattern is one of the best signals on any market for predicting the next move. But should you trust all pin bars? In my humble opinion, NO, and I’m explaining this idea below and the approach I take to distinguish valid pin bars from invalid ones.
I suppose you already know what is a pin bar, so I’ll not explain its basic details here. If you don’t know please, do a search and read its basics first.
I have 3 filters for my pin bars. Find them below and boost the idea if you liked it :)
1- What should it look like?
In my opinion, having a candle with a shadow (wick) longer than the other and a small body is not the only factor to call it a pin bar. I filter pin bars by expecting some pre-defined proportions and ratios between body size and shadow lengths. Here are my rules:
The body must be at least 2% of the candle height.
The long shadow must be at least 4 times bigger than the body.
The long shadow must be at least 2 times bigger than the short shadow.
I know you are rightly thinking about how to calculate them, but do not! There is a simple indicator that does this calculation and highlights the pin bars for you, the Abnormal Pin Bar indicator . You just need to set it up with your values. You can even set up an alert to let you know when a pin bar is shaped.
These are my rules and values that fit my strategy, you can use them. Also you can do your own tests to find the values that fit your psychology and your strategy. You can say you prefer a pin bar that has a bigger body than yours! it’s okay, just do your own tests to make sure it works for you.
2- What is behind that?
Always inspect the smaller timeframe to check if the sub-candles that shaped the pin bar confirm its bearishness or bullishness. Yes, you should always see the big picture but remember, all the moves start from smaller timeframes. You shouldn't expect too much from a movement with bad groundwork.
For a bullish pin bar, its bullish sub-candles must overcome the price action and volumes of its bearish ones, and on the other hand, for a bearish pin bar, its bearish sub-candles must surpass the price action and volumes of its bullish sub-candles.
It would be nice to write a long and detailed article about bearish and bullish sub-candles competition and when they overcome each other. It's not something you decide just by comparing the number of bullish and bearish sub-candles! Long story short, it’s all Price Action and Volume Analysis. and my favorite one is when the volume of sub-candles in one direction surpasses the volume of the candles in the opposite direction. Or you can look for volume and price anomalies.
What is the volume and price anomaly?
The volume and price anomaly is a simple pattern that occurs in two consecutive candles. Assuming two descending candles or two ascending candles in a row, if the body of one candle is bigger than the other one, we expect its volume to be larger, or if the body of one of them is smaller, we expect its volume to be small. Now, if this pattern is not observed for two consecutive candles, we call it a volume and price anomaly.
For example, a candle has a larger body than the previous candle, but its volume is smaller than the previous candle. Or a candle that has a smaller body than the previous candle, but its volume is greater than the volume of the previous candle!
Anomaly Confirmation Candle:
In most cases, after the volume anomaly, I wait for a confirmation candle. This candle will be a bearish candle for a bullish anomaly and will be a bullish candle for a bearish anomaly. The volume of the confirmation candle is very important in anomaly, and in addition to its shape and size, you should also pay attention to its volume.
I just explained the anomaly here to give you a point of view and perspective. I don't want to make this idea overlong so I do not go into more details. Maybe it would be a subject for another idea ;)
In which timeframe should the inspection be done?
You will understand which timeframe you should choose to inspect a pin bar sub-candles by experiencing it over time, but I personally consider two things:
1- The timeframe must be well-known and be used by not only me but also by most traders.
2- It must contain at least 4 sub-candles. e.g. for a daily pin bar, 12h reveals only 2 sub-candles while 4h reveals 6.
For example, for a closed daily pin bar, it would be a good check to inspect candles for the 4h timeframe. or after a weekly pin bar close, you can check the candles of the last 7 days.
Consider this instruction and practice on the chart to see the result.
If one of the pin bars in sub-candles is also a pin bar, do the same inspection for it.
3- On there any key level around?
A pin bar is an important pattern but one that touches a trend line or any important level is leading! The combination of a key level and a valid pin bar is something very valuable and instructive. It's definitely not to be missed, provided you do your own analyses.
Prioritising trend lines and important levels always makes my decision easier when a pin bar spawns near to more than one significant level.
Check twice if you face a pin bar in peaks, troughs, resistance or support areas, supply and demand zones, or as a rejection from a trend line.
You can use the Trend Key Point indicator to highlight important levels. Additionally, there is a guide about its usage .
Bonus Tips:
Pin bars on bigger timeframes are more reliable.
If there are lots of pin bars shaped on a chart, think twice, select a bigger timeframe, or do not use this strategy on that specific asset.
For two valid pin bars in a row, the one with a bigger volume is more important to me.
Check twice if the volume of a pin bar is bigger than the volume average.
Check twice if the volume of a pin bar is bigger than the volume of its previous candle.
Do you have any questions? ask in the comments.
Do not hesitate to write your opinion about this idea.
I'd appreciate if you share this idea with your network.
What is liquidity gap? Why there is always pump?🚀 When the bull market start with a good news? It`s always bad news at the beginning of the uptrend: in 2015, 2019, 2020. Always the same situation. And now we a here in 2022 and bad news at the bottom of the market. Push 🚀 if it looks similar to other cycles.
In this idea i explain you what is liquidity gap and global situation on BTC. You can identify it using the Volume Profile which is default tool at TradingView.
📊Liquidity gap is an area where the price not stay for the long time and don`t create any levels or order flows. So as you understand there are areas without any liquidity where the traders can set a sl or tp. We can compare it with empty space where is no life or it`s really rare thing.
The price break this areas so easy because there are no liquidity and the price:
🔥 have no support if it falls (as it was when BTC fall in a week from $29k to 17k few month ago)
🔥 have no resistance if it growth (as it was at any bull market when the price nreak the ATH and scyrocketing)
Now the price of BTC consolidating below such liquidity gap of $24500-29500 and going to break it up after some accumulation. As a rule, the liquidity gap breaking with a pumps because nothing stop them inside this gaps.
The top of this gap is a bottom of a huge consolidation channel $29500-69000, so the price can make a pullback after $29500 test. In final, price break this level and continue it`s growth to the previous ATH.
Thanks in large part to consolidation at the bottom, where the bulls were able to accumulate enough Bitcoins and are ready to sell them higher and higher. Consolidation is always good for the bulls especially for the biggest one 🐳
📊Why are these white circles marked? It's a bonus for my subscribers. Remember that before the very PUMP you will think everything will fall to zero, and many analysts on the trading view will say that the price has created a bear flag or a wedge etc. At that point, you may be disappointed and afraid to open a trade or sell all your crypto, but that will only be an emotion you should not succumb to. Only if your strategy says so. Keep these words in mind.
🔥 I will open a trade if I will see the large whales orders on DOM and Footprint. These are usually the most profitable trades with a short stop loss and excellent risk to reward.
💻Friends, press the "boost"🚀 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
Wyckoff Schematics broken downBack last year I posted an educational post on the Wyckoff Distribution schematic I was seeing on Bitcoin. This was the logic behind the "Rocket Call" back last March.
It was knowing where to search for an accumulation (which it was not) or a distribution. There are a couple of tell tail signs outside of Wyckoff literature that can assist in knowing which is which for various reasons (not for this post).
So at the 60k marker first time around, I could see the logic for a Distribution and it revealed it's hand very early on. I wrote this educational post around the topic.
Knowing Wyckoff - it's more to do with human psychology than technical analysis - many people said at the time, oh it's 100 years old, can't work in crypto etc, etc. Unfortunately as the human race, we are getting dumber and dumber, making these schematics almost more valuable in today's markets.
After we had our move "Rocket" post. I covered another educational post hinting at the accumulation phase - naturally, the price drops and rises as the waves.
In this post I covered the key for the terminology used in these schematics.
Below you will see some info on the phases of an accumulation schematic.
Accumulation Schematic
Phase A
The selling force decreases, and the downtrend starts to slow
down. This phase is usually marked by an increase in trading
volume. The Preliminary Support (PS) indicates that some buyers
are showing up, but still not enough to stop the downward move.
The Selling Climax (SC) is formed by an intense selling activity as
investors capitulate. This is often a point of high volatility, where
panic selling creates big candlesticks and wicks. The strong drop
quickly reverts into a bounce or Automatic Rally (AR), as the
excessive supply is absorbed by the buyers. In general, the trading
range (TR) of an Accumulation Schematic is defined by the space
between the SC low and the AR high.
As the name suggests, the Secondary Test (ST) happens when the
market drops near the SC region, testing whether the downtrend is
really over or not. At this point, the trading volume and market
volatility tend to be lower. While the ST often forms a higher low in
relation to the SC, that may not always be the case.
Phase B
Based on Wyckoff’s Law of Cause and Effect, Phase B may be
seen as the Cause that leads to an Effect.
Essentially, Phase B is the consolidation stage, in which the
Composite Man accumulates the highest number of assets. During
this stage, the market tends to test both resistance and support
levels of the trading range.
There may be numerous Secondary Tests (ST) during Phase B. In
some cases, they may produce higher highs (bull traps) and lower
lows (bear traps) in relation to the SC and AR of the Phase A.
Phase C
A typical Accumulation Phase C contains what is called a Spring. It
often acts as the last bear trap before the market starts making
higher lows. During Phase C, the Composite Man ensures that
there is little supply left in the market, i.e., the ones that were to sell
already did.
The Spring often breaks the support levels to stop out traders and
mislead investors. We may describe it as a final attempt to buy
shares at a lower price before the uptrend starts. The bear trap
induces retail investors to give up their holdings.
In some cases, however, the support levels manage to hold, and
the Spring simply does not occur. In other words, there may be
Accumulation Schematics that present all other elements but not
the Spring. Still, the overall scheme continues to be valid.
Phase D
The Phase D represents the transition between the Cause and
Effect. It stands between the Accumulation zone (Phase C) and the
breakout of the trading range (Phase E).
Typically, the Phase D shows a significant increase in trading
volume and volatility. It usually has a Last Point Support (LPS),
making a higher low before the market moves higher. The LPS
often precedes a breakout of the resistance levels, which in turn
creates higher highs. This indicates Signs of Strength (SOS), as
previous resistances become brand new supports.
Despite the somewhat confusing terminology, there may be more
than one LPS during Phase D. They often have increased trading
volume while testing the new support lines. In some cases, the
price may create a small consolidation zone before effectively
breaking the bigger trading range and moving to Phase E.
Phase E
The Phase E is the last stage of an Accumulation Schematic. It is
marked by an evident breakout of the trading range, caused by
increased market demand. This is when the trading range is
effectively broken, and the uptrend starts.
There is an awful lot more when it comes to understanding Wyckoff - such as volume, but it is too much to put in a handful of posts. These posts are done to give you an insight into trading Wyckoff.
Another useful post on this topic is this below;
People tend to look at Wyckoff on a Tick chart, a 1min or 15 minute chart - the same rules apply and are potentially more beneficial and applicable on the higher timeframes, seeing a weekly move play out in terms of a schematic could take several months. It's all about knowing what to look for.
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
What is an altseason❓What altcoins to BUY❓Altseason is a time when you can increase your deposit by several times in just a couple of weeks. But how to identify why and when the altseason starts, what is domination and what altcoins to buy? We will talk about that in this educational idea.
📊 What is an altseason?
Altseason is a period in the cryptocurrency market when altcoins grow by 50-100% or more in a few weeks.
📊 When does the altseason start?
Typically, the altseason happens when Bitcoin:
🔥 is in consolidation, i.e. trades in the same price range for a long time or 1-1,5 month after it
🔥 renewed it`s ATH ($20k in 2017, $69k in 2021, etc.)
🔥 starts it`s correction close to ATH or when BTC has already reached its new all-time highs before bear market
🚩 In this example I have compared Bitcoin and Ethereum. Ethereum is the largest and most famous altcoin. If you want to understand what will happen with altcoins, look at Ethereum.
On the chart you can see the altseasons and how much more percent Ethereum is growing than Bitcoin:
1️⃣ BTC +32% vs ETH +136%
2️⃣ BTC +40% vs ETH +70%
3️⃣ BTC -15% vs ETH +170% for the same period
🚩 There are the altseasons.
📊 Why should you pay attention to Bitcoin and Ethereum?
99% of altcoins follow Bitcoin. When Bitcoin is in a bear market, all altcoins fall except the popular ones at the time. For example, like GMT in its day.
When Bitcoin is rising, all altcoins are rising. When Ethereum rises in pair with Bitcoin (ETH/BTC), all other altcoins rise. This is especially common when Bitcoin begins its first correction after reaching its all-time highs and a bear market begins.
📊 Why does an altseason happen?
The main reason for an altseason is the outflow of money from Bitcoin and its flow into altcoins.
The second reason is the desire to make as much money as possible. Especially this huge desire has retail traders and newcomers who have just come on the highs of the crypto market. They sell their Bitcoins and use the money to buy altcoins, which grow by 100% or more in a few weeks.
🚩 Of course, Bitcoin has a much larger capitalisation and cannot grow that fast, but altcoins with a capitalisation of up to 1 billion grow very quickly.
✅ As a consequence, Bitcoin's Domination falls. Dominance is a measure that shows the ratio of the worth of all Bitcoins to the total worth of the crypto market (the capitalisation of the entire crypto market). If Bitcoin Dominance is 40%, it means that 60% of the remaining money is in altcoins. A rise in Dominance to 50% means that Bitcoin has equalised in value to all other altcoins combined.
Many people think that Domination helps determine the altcoin season, but this index only shows the fact✅of the flow and predicting that money from Bitcoin will start flowing into altcoins at a certain point using Domination is quite difficult.
📊 What altcoins to buy before the alt season has started?
Friends, how to predict that AXS will grow by 130x or meme lord Elon Musk will start pamping exactly meme coins? It's almost like a lottery, that's why I recommend you to choose altcoins from different categories and buy them in equal parts: DeFi, Game-Fi, Exchange and wallet tokens etc.
Equal capital allocation will ensure that you don't miss out on any kind of altcoin growth. From practice, this is the most correct way. And what ways to buy altcoins do you know? Share in the comments.
🔥 Most likely, the next BIG altseason will start after Bitcoin renews its all-time highs. In the current market situation, that could happen within 6-12 months.
Traders, was this article about the altseason useful to you? Write your opinion in the comments.
💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
Bitcoin dominance. How does it affect the cryptocurrency market?#BTC #altcoins #dominance #education
▪️Bitcoin dominance index - is an indicator that indicates the ratio of bitcoin capitalization to the capitalization of the entire cryptocurrency market.
▪️How does btc dominance affect the market? - When the dominance of bitcoin falls, altcoins begin to rise - this is called the alt season!
▪️Now the dominance is at its minimum values, which means that it will soon begin to grow! Altcoins will be weak during this period of time. Bitcoin may reach $30,000 and go for a correction. So far, these are my thoughts for the near future!
Subscribe. stay tuned for ideas! Links below👇
Think like a PRO and trade at ANY markets🔥Hi friends! Do you want to know what zones I marked on the chart? Put 🚀 and read to the end.
In this educational idea I will explain a few traders secrets that will help you stay profitable in any market for the long term. Take Bitcoin as an example and you'll be surprised how often the same mistake is repeated by beginners and understand how professional traders take advantage of it.
📊 But first, let's find out why the psychology of the crowd drives the market
Fortunately for professional traders, human psychology has not changed in centuries. Bubbles in financial markets now appear just as they did before the Great Depression🔻in the early 20th century, when stocks rose by hundreds of percent in a month, and just as they did during the Tulip Fever🌷in the 17th century, when the price of tulips really soared to the moon due to the huge demand for the flower.
🚩 This shows the similarity in the thoughts of people in the 17th, 20th, 21st centuries. It is these faults in human psychology that allow the patterns in trading to work and professional traders to be profitable over the long term. Just don't tell anyone about it!)
📊 Why do people tend to panic during a fall and get greedy during a rise? The fact is that our brain tends to paint wishful thinking in our imagination. When a cryptocurrency is rising, the imagination thinks that the price will rise forever, and you get excited just thinking about the possible earning. And the happiness hormones just keep surging.
The opposite is the situation with the fall. When markets fall, our brain tries to protect us from more losses and forces us to sell cryptocurrency.
📊 What help the big players to control the psychology of the crowd? Of course, it's the media. Remember when news of the US recession was at its peak and it seemed like a crisis was imminent. Just at the bottom of the market, when Bitcoin fell to $17k and the SnP500 to $361.
I may surprise you, but in 2018, 2020 people had identical thoughts and all thought Bitcoin would fall to $1000. The crypto market can fall lower to 10-12k of course, but just interesting to know did any of my subscribers buy cryptocurrency back then or at 17-19k❓Write in the comments./b]
📊 What are the areas on the chart? I marked 2 areas:
🔥The 1st area (white) is the areawhere the majority of traders, especially newbies, want to buy cryptocurrency. I call this " Bitcoin will rise to 1 million" zone.
🔥The 2nd area (green) is the area where most traders sell the cryptocurrency they bought at a higher price. Most importantly, it is where most traders believe that the fall will continue even lower and do not buy, expecting a fall. I call this "Bitcoin will fall to zero" zone.
✅How can you use the psychology of the crowd to your advantage? I can tell you from my own example that a clear strategy and working with indicators helps me. For example DOM and Footprint, where I can see huge whale orders and open a trade in the same direction as a big player. A large order is a clear signal✅, not a psychological speculation because of the news.
A few days ago I showed in one of my ideas how Bitcoin rebounded from a large whale order. Bitcoin then grow by 4-5% in just a few hours.
I also use trading systems such as Greenwich or Pump Tracker to identify Bitcoin and altcoins bottoms and ATH. You can see ideas about them on TradingView and their live results✅ It may surprise you!
🏁Summary. This knowledges are usefull for any market: crypto, stocks, ForEx, bonds etc. Human psychology and thinking are the same, but each market has its own specifics. Perhaps I will talk about this in the next educational ideas.
Friends, was the idea useful to you? Have you noticed such psychological zones? Do you agree with this idea or do you think Bitcoin will fall below $17k? Write in the comments.
💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
What are True and False Break Outs ?False Break outs impose considerable loss to traders. How to recognize a false break out?
To recognize a false break out we should first learn what is a true break out? In fact,simply, Every break out which is not a true one is a false break out.
BTC in it's recent movements shows two beautiful example of false break outs. As shown on the chart, we have a dynamic resistance line with three clear rejections and two false break outs. It means before 1st break out which was 4th rejection BTC had a chance to break out the resistance but it never succeeded. Why?
A true break out has three important conditions :
1. first of all, Break out should be done by a strong high volume bullish candle and at least 50 % of body of such candle should be placed above the valid resistance.
2. A pull back to broken resistance and rotation is necessary to be sure about true break out. Please note sometime we may not see a complete pull back ( if there is a support before broken resistance) but who can accept the risk of false break out?
3. Continuation of movement in direction of break out.
As we can see, BTC in it's 4th and 5th attempts to break the line was unsuccessful even to fulfill the first condition.
Also shown on the chart is what could have been a true break out.
Although simple in concept, false break outs are headaches for some traders. What makes traders to fall in the trap of false break outs is not because of complexity of the concept ( As it is very simple ). It is about controlling emotions and psychology.
Good luck everybody.
Rare PUMP pattern. Look for a "Base" on BTC🚀Every trader want to catch the pumps because only in this situation you can get the highest RR. In this educational idea we will talk about pattern which help you to identify upcoming pumps. It`s a base pattern.
"Base" is consolidation pattern which is forming at the market bottom and a part of famous cup and handle pattern. "Base" is acually a copy of cup and it`s lead to PUMP✅when the price break up this pattern.
📊 Why base is important for the long traders❓ Because there is a lot of whales have enough liquidity to accumulate their position. The big volume bars at the bottom are also confirmed that whales buy ADA at the "dip"!
📊 Why the formation of the base leads to PUMP❓ As i said the base is the consolidation pattern where the big players can accumulate enough✅liquidity from scared retail traders.
🔥In the most cases the base forming at the market bottom when the biggest part of traders think that crypto continue to DUMP and sell their crypto at loss or at breakeven. But who buys this huge amount of crypto? Of course this is someone who don`t scare - the big players.
🔥Additionally, the price "compresses like a spring" in consolidation range and when the crypto break up the base the "spring uncompresses" and PUMP begin.
📊 What indicator helps to identify the base and upcoming PUMPS❓ This is a basic volume indicator. The volume growth helps you to identify the bottom. A lot of crypto sells by retail traders and the volume bars grows.
📊 What timeframes should you use to have beggiest winrate (80-90%)❓ The higher the timeframe the better, especially for beginners:
1️⃣ 4h
2️⃣ 1d
3️⃣ 1w
🚩 You need to have experience and complete scalping studying to identify PUMPS at lower timeframes (5m, 15m, 1h).
Look for the "base" on the higher timeframes then move to lower timeframes to have clear understanding of this pattern and find the best entry point. I use the trandline breakout to open a long before the pump. Maybe, you will share your tools to open a long before a pump?
🚩 Traders, do we have the base on BTC now❓ Are retail traders scared and think that BTC will fall lower? Let`s discuss it in the comment!
💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
What to include in your Trading RoutineMost people dive straight into trading without knowing how or why. They also don’t plan ahead.
This is why most people are unsuccessful at trading.
Having a well developed plan is KEY 🔑 to trading success!
Let’s see what in must need in trading routine:
1. Trading Journal 📝
You won’t improve without a trading journal, your whole trading routine is built around your trading journal. The time you’re trading without one is wasted time period.
2. Backtest 📌
Do it every week at least once.
Backtesting increase:
- Confidence in your strategy;
- Self-confidence to execute it;
- Discipline (when you’re confident about your strategy, you are more likely to respect it.)
Tip: Journal your backtested setups.
3. Weekly mental preparation ⏳
Write down things like:
- What are the things you want to work on.
- What are the habits you want to improve.
- What are your goals for next week.
4. Technical preparation 💡
- Make your analysis.
- Study the different price scenarios.
- Prepare your trading ideas.
You can do it weekly or daily depending on your needs.
5. Weekly performance analysis 🎭
Open the psychology section of your trading journal:
- What did you do well?
- What could have you done better?
- What lessons did you learn?
- Realization about yourself, your strategy and the market.
6. Wins and Losses analysis 🌓
- Open the charts of your trades one by one.
- Read your mistakes
- Write down at least one lesson you took from each trade.
Tip: always take a screenshot at the exact entry point of each trade. This allows you to mitigate the hindsight bias and develop your pattern recognition skills.
7. Writing ✏️
Write down your thoughts and emotions on bad days.
It helps you understand your mind and gives you clarity.
It’s a great way to focus on the process and be patient.
8. Activities outside of trading 🚴🏻♀️🚣🏻♂️
You’re going to lose motivation and belief with your trading many times, you need to have extra motivational source.
If you only rely on your trading results to feed your persistence, you ganna give up easily.
If you like this content help me grow ❤️🌱
I’d be happy you add more tips to learn from each other
Explanation | the US Federal Reserve conference is of great impoAt the Jackson Hole conference, financial markets will keenly watch if US Fed chair Jerome Powell mentions the word taper in his speech and whether US Treasury Secretary Janet Yellen has anything to say on the interlinkages between fiscal and monetary policy
The financial media and markets will be buzzing for the next few weeks over the Jackson Hole conference. It is an important economics conference hosted by the Kansas City Fed, one of the 12 regional Federal Reserves created by the United States government. There is a history of important policy decisions unveiled at the Jackson Hole conference with implications for world markets. Here’s a lowdown.
What is the Jackson Hole?
In 1978, Kansas City Fed started organising an economics conference, and in 1982 moved the conference location to a valley named Jackson Hole (JH) in the Wyoming state. The annual conference has been held in the last days of August for quite some time now.
What is the history behind it?
Jackson Hole started as any other economics conference. The first four conferences were on agriculture, given the importance of the sector in this part of the US. In 1982, it organised the first conference on the monetary policy theme titled ‘Monetary Policy Issues in the 1980s’.
The 1982 conference was attended by then Federal Reserve Chair Paul Volcker, which set a precedent of sorts as most subsequent conferences were attended by the Fed chairpersons/senior officials. In 1982, the conference was attended by eminent macroeconomists and monetary policy scholars such as James Tobin (Nobel Prize in 1985), John Taylor (of Taylor Rule), William Poole (who became head of San Francisco Fed later), and so on.
In 1989, then Fed chair Alan Greenspan also made a speech at the conference. This added to its aura as now it was not just about the attendance of the US Fed chair but also about the remarks/speeches at the conference.
As linkages between monetary policy and financial markets deepened post-1990s, market participants started tracking the Fed chair’s remarks to figure the direction of the monetary policy.
Since 1982, the conference has been held 41 times including the 2021 edition. The theme has usually been around macroeconomics, monetary policy, long-term growth and policy, including the 2021 theme on ‘Macroeconomic Policy in an Uneven Economy’.
In 1990, the conference on ‘Monetary Policy Issues in the 1990's’ had representations from the erstwhile USSR, Czechoslovakia and Yugoslavia, and Bulgaria.
Gradually, the forum was attended by governors and central bankers from major advanced economies in Europe and Asia. This led to the financial markets in these respective economies tracking speeches and remarks from both global central bankers and representatives of their country’s central banks.
What makes Jackson Hole so special?
In many cases, it sets the agenda for monetary policy and shaped star economists.
The 1996 edition raised the importance of price stability. The 1999 edition highlighted the interaction of monetary policy with asset markets.
The 2005 edition was a swansong for Greenspan where his policies were praised only to be tarnished during the 2008 crisis.
The 2007 edition focused on housing and monetary policy where chair Ben Bernanke expressed confidence that the subprime housing markets are unlikely to lead to a crisis only to be proven wrong a year later.
The 2008 crisis led to increased attention on financial stability which was the theme in both the 2008 and 2009 editions.
In recent years as monetary policy has struggled to elevate inflation to the 2 percent target (for the US), there have been discussions on unconventional monetary policy (2013), designing resilient monetary policy frameworks (2016), monetary policy challenges in the next decade (both 2010 and 2020).
In 2020, Fed chair Jerome Powell released a new monetary policy framework named Average Inflation targeting which has become a major discussion point amidst the central banking research community.
The conference even catapulted the careers of economists. The name that comes to mind is that of Raghuram Rajan who had questioned the financial market developments in the Greenspan swansong edition in 2005. Rajan was dubbed a ‘luddite’ then but had the last laugh as the 2008 financial crisis engulfed the world economy.
What should we expect from the 2021 edition?
The theme of the 2021 conference is ‘Macroeconomic Policy in an Uneven Economy’. The global economy has been highly uneven due to the pandemic shock with rising inflation amidst stagnant growth prospects.
Conference watchers will keenly follow this edition as it is expected to be attended by US Treasury Secretary Janet Yellen, and Powell. This is rare as usually, the treasury secretaries do not attend the conference. Yellen is no stranger to Jackson Hole as she was the chairperson before Powell, and has been a chief speaker at the conference. If both attend and speak, it will be interesting as both the guardians of fiscal policy (Treasury) and monetary policy (Federal Reserve) will get together to provide solutions to the uneven economy.
They have to answer some big questions facing the US economy which will also impact the world economy. The foremost question is whether the fiscal and monetary stimulus will continue to remain in the US economy, and for how long.
The financial markets in emerging markets will see if Powell mentions the word taper in his speech and whether Yellen has anything to say on the interlinkages between fiscal and monetary policy.
#2 | Understanding Wave Analysis TheoryIt's a simple concept.
Impulsive wave, corrective wave, impulsive wave, corrective wave...
You may think I'm here to talk about Elliot ... (if you know him)
No.
The problem with Elliott Wave Theory is...
IT'S TOOOOO OLD.
It has a lot of problems...
The markets of 1938 aren't the same as the markets of 2022.
I'll show you an updated version...
The biggest mistake beginners make when they trade the flag pattern is
FALSE ENTRY.
Have you ever traded a flag when it breaks the trend line, then it goes straight to hit your stop loss?
Absolutely yes, one reason for this is...
YOU DIDN'T UNDERSTAND THE STRUCTURE OF THE WAVES YOU WERE LOOKING AT.
99% of beginners do rely on stupid strategies that say:
IF THE PRICE BREAKS THE TREND LINE, JUST BUUUUUY.
Because of that, they get disappointed results...
WRONG ENTRY.
WRONG STOP LOSS.
WRONG TARGET.
EVERYTHING GOES WRONG.
I highly recommend you have a basic understanding of Dow Theory and Elliot Wave Theory .
They are the structure of this updated WA version.
That will make you able to understand the upcoming ideas and analysis where I will share with you details and my strategies to trade the regular-flag properly.
If I see likes, I'll post the 3rd idea about the different types of impulsive and corrective waves.
Make sure to follow us.
Trader📈 VS Gambler🎲: who are you?Press the "like"👍 button if you find yourself at this charts.
Hi friends! Today i`ll give you 5 simple advice how to improve your trading results if you are beginner. But first of all we have to identify who you are in trading.
📊Who is a gambler? A gambler is a person in the financial markets who:
1️⃣ does not control his/her risks and can use leverage without thinking about losing capital
2️⃣ trades mainly on info occasions (someone said something somewhere in Tweeter or Reddit)
3️⃣ does not have his/her own trading strategy and style
4️⃣ wants to make money and lambo as famous influencer here and now, without even knowing how to calculate the size of the position or the ability to determine the market trend
🚩Why is gambling so dangerous? Once you have earned a lot of money and of course lose it, the gambler is trying to win back, losing more and more money. This is a condition of excessive greed.
📊Who is a trader? A trader is a person who earns by buying cryptocurrency cheaper and selling it higher (long), or by selling it higher and buying it lower (short).
🚩Why a trader can make money, but a gambler can't? The trader follows these rules:
1️⃣ knows his/her trading style and
2️⃣ knows WHEN and WHY he/she buys or sells cryptocurrencies, which means he/she has a working trading strategy
3️⃣ is not afraid to miss opportunities, because he knows that the market gives them all the time
4️⃣ gradually increases deposit and increases the size of trades step by step
5️⃣ asks more experienced traders for advice, because he wants to avoid making the same mistakes and saves his time for trading
🔥The trader grows gradually, step by step, he is interested in new approaches, adapts to the market. If you are reading this idea now, it means that you really want to improve your trading skills and you are probably not a gambler.
✅How can you switch from gambling to trading mode? It's very simple if you start to follow the trader's points:
1️⃣ Define your trading style. Who are you: a scalper, a swing or a position trader? Try different styles and understand how you trade comfortably, which one gives you more pleasure and results. Don't forget about these 2 points.
2️⃣ Create or borrow a trading strategy that suits your trading style.
📈 If you don't know how to determine your trading style and where you can get free trading strategy, leave the comment or DM. I'll give you some advice.
3️⃣ Start trading with a small deposit . This will save you from possible losses due to inexperience, but it is worth to try. For example, use $50-100 or a demo account. If you can't make money with $100, how can you make money using $10,000?
4️⃣ Get in touch with newbies like you and share your trades. This is what our community of more than 800 traders with different trading level allows you to do, either share your ideas in comments on trading view or post your ideas and test their success over time.
🚩Of course, perfect trading only happens in a picture. Catching a stop loss because of your own mistake is a common thing both for an advanced trader and a beginner, but you have to work on your mistakes. 1 out of the 5 lessons in my mini-course is about typical trader's mistakes and how to fix them. Enjoy it!✅
Traders, what would you add to the traders` list to improve trading skills? Let`s discuss in the comments.
💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
BTCUSDT - read to people with IQ over 100🧠
To begin with, you don’t see all this, because you rested on your indicators, on the thoughts of opinion leaders who themselves don’t really understand anything about trading and earn only on you.
On this platform, I have a lot of ideas related to numbers, check them out. It is very important for me that you guess what these or those values mean.
Try to simply see how many references to 33 leave Elon Musk and NASA, even every launch and spacewalk of an astronaut is accompanied by an impulse in one direction or another on the chart not only of BTC but also of the stock market. All this can be analyzed because it is all done for the sake of profit and the direction of the process in the right direction.
Let's start with what does 33/13 mean? This number means a new beginning, the start of something new - numerology is not a stereotyped understanding that was imposed on you so that you are not specifically interested in it, namely, from the mathematical side of Gann, Fibonacci is all numerology, all great mathematicians were numerologists, but some then the dudes who sell their courses talk about how it's all nonsense. All numbers have certain meanings that were created by ancient civilizations such as Maya.
You are wrong, the author, maybe you can add the Sumerians here?
I will attribute all astronomy, calendars, star maps, how many days in a year and hours in a day were studied thousands and thousands of years ago.
I also pointed out many examples of practicing the number 14 - directing energy towards resistance or support, balance. Which brought a large% profit, just trading from the levels that were formed by large players in the order book or there were marks on the chart. How 888 means the price goes in the opposite direction by a step more than 2%, which you can easily pick up with a stop of 0.4%, but you don’t see it. Open your eyes, wake up and for God's sake stop reading and listening to the opinions of those who direct the crowd, because that's how they cut you like hamsters.
in plotting I used arc system and degree system, you can find all the information on this great platform. The bottom line is to take trend lines and draw lines along them using cycles in parallel. In general, you can see this on the chart.
a similar system can be applied to any liquid instrument such as the stock market, raw materials, gold, metals, indices, currency pairs, etc. Even on low-liquid shieldcoins. Depends on your imagination and understanding of the process.
Notice how cycle 333 indicates the next BTC low or high. Subscribe here a lot of interesting things, like the idea
When is the perfect time to participate in Launchpads?Hi friends! No, the best place is not BTC`s ATH but why a lot of hype around it exactly there? In this idea i will explain you where it`s better participate in ICO, IEO to get the profit during the bull run.
Fewer of the most experienced make money in the market, and the majority always lose in the end. A common example is Doge millionaires who lose their money in a few days on a Bitcoin dump.
Why it's worth it to participate in lanchpads at the beginning of the Bitcoin bull market:
1. all altcoins follow Bitcoin and will grow till BTC grow. Yes, Bitcoin outperforms alts in short terms at the beginning, but they make good profits during altseasons. Often there are 2-3 such altseasons. By the way, if you are interested to know how to determine the best place to buy altcoins - write me in the comments, I will make an educational idea for you.
2. If the lunchpad was unsuccessful and you get a loss, during the BTC bull market the price of alt return at least to you entry point . As long as the loss isn't fixed, it's not a loss, so you can wait for a return to the entry point and come out at break even or in profit. That way you will save your money because you bought alts at the beginning of bull market.
For example, let's take the coins from the Binance Launchpad in 2020 when the bullmarket just begin:
1. WRX +9700% to its peak (ATH). At hte beginning you even can gea a loss. but after had amazing return.
2. SAND +11300%
3. AXS +112670%
I don't think it's worth adding anything.
Why are lunchpads almost no profitable at ATH:
1. a lot of hype around the new launchpads , people feel extreme greed. You know, that 90% of traders are not profitable. Majority will not earn because the majority can`t be the professionals.
2. after lunchpads at crypto market highs, altcoins don't grow so high. If you bought any altcoin when Bitcoin was $4-5 or $10k, you would have made more money than on popular lunchpads. This only works if you don't have a strategy for trading Bitcoin futures trading during a bull market, when you are increasing just the number of Bitcoins. Then you can make much more money than on altcoins.
But if you prefer Altcoins, you can not only fail to earn, but also lose a lot of money, as most of traders, who bought crypto when Bitcoin was above 50-60 thousands, did.
To give you an example, let's take the lunchpads on Binance for the then popular Game-Fi projects on ATH:
1. DAR - up 35% and down 91%
2. MBOX - after growing by 130%, it fell by 95%.
Is this the kind of profit you want to make? The fairy tale about 100x is definitely not here.
Summing up, it's better to take part in several Lunchpads at Bitcoin's "bottom" and get 1000% or at least break-even, than to participate at ATH and get a loss of 95%.
It`s worth to say that only 1 out of 100 coins/crypto have a some value, another one made for collecting money from the crypto newbees. Our aim is to buy low and sell high. That`s all.
Check the idea about when it`s better to come to a crypto market and crypto trading. This idea give you a clear understanding about why you are at the rights place now!
I will explain you where is the best place to buy ALT`s in the next educational ideas! Cheers!
💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
The Role of Patience in Swing Trading.I have been actively trading the market since 2019 without doing stupid things (only minor mistakes). Before 2019 I was trying to get rich fast, and of course, that didn't go well.
One of the things I have been doing since 2019 was writing principles or key ideas regarding my trading journey. That includes significant mistakes or things I noticed about the fundamental laws behind price movements.
One of those principles is patience. I would put this principle in my top 5 definitely (and I have more than 40 principles I have written since 2019)
The principle: Whenever the market is not providing evident opportunities, DO NOT TRADE! Be aware that you will get anxious because of the lack of executions. However, remember that history has shown you that not trading during those periods was always the best thing to do.
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Let's expand the previous principle.
I have realized that you can not force the market to provide opportunities, and sometimes the market will not provide opportunities for extended periods (months). The first time this happened to me, I started getting anxious because I thought I was missing something, and I executed a lot of low-quality setups, of course, that finished in an absolute mess.
That kind of behavior didn't happen once to me, but several times. And my conclusion always was that if the market is not providing clear opportunities, it was always best not to trade. In other words, I would have been better without executing setups. So, at one point, I asked myself. "How many more times do I need to experience this to understand that I should not trade if the market is not following the filters I have defined?". And in 2019, I decided that would be the last one.
I'm writing about this because I didn't have a lot of executions lately, and I can feel that anxiety telling me, "DO SOMETHING, just trade." And at this stage I'm currently in, I do not follow those feelings anymore, but I keep following my trading plan.
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Let me explain how this applies to two assets I like trading, SP500, and Bitcoin.
On Bitcoin , I'm interested in developing bullish setups, and my filters are the ones you can see in the following image. However, if the price does not move as expected, I will not trade. And not trading is tricky because of the anxiety I explained to you before.
On the other hand, we have S&P500 . Similar to BTC, the price has been falling, and I expect bullish opportunities to come. However, I will not risk one dollar until I see the current descending channel broken.
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Lets Recap:
As a swing trader, developing your patience and waiting for the best opportunities without trading in the meantime will save you a lot of money. Remember that you can not force the market to provide you with opportunities; you can only be ready to take action when those opportunities come.
I hope this concept was useful. I mainly wrote this for myself, like a journal. If you have any concepts you would like to share in the comments; it's always a pleasure to read your ideas. Have a great day!
📊BTC and FED RATE: is it better to hike? Crypto mythbusters!Some experts use such rules as hiking rate = bear market and falling rate = bull market but if we compare the fed rate with the BTC price we can see that the price is not always follow this rule. Trully say in most cases it don`t.
Let's dive deeper into it!
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📊THE BULL MARKETS:
1️⃣ 2015-2017 – the rate is growing.
2️⃣ 2018-2019 - the rate isn`t growing but still high.
3️⃣ 2020-2021 - the rate is 0 and market is growing.
In 2 out of 3 cases the market is growing when the rate is high.
At the end if we compare two Bull markets of 2017 and 2021 there is more massive and longer growth was at 2017 when the rate was hicking.
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📊THE BEAR MARKETS:
1️⃣ 2017-2018 - the rate is growing and market is falling. Actually, it can happen because of the lack of buyers. It was the biggest BTC bullrun so the hicking rate is not the main reason.
2️⃣ 2019-2020 - the rate is falling and price is falling too.
3️⃣ 2021-2022 - the rate is growing but the price is falling.
In 2 out of 3 cases the hicking of the rate push the price lower but as we have already identified the 1st bear market of 2017-2018 had to happen after the biggest bull market.
🚩Why the market can fall this time? We had the case of Do Kwon and Luna, UST. Additionally, the stock market push the price of crypto lower. This 2 thing caused the extreme fear at the market and forced retail traders to sell.
🏁Finally, we can say that this pattern is unclear and in most cases work against the rule "hicking rate = bear market".
Traders, what do you think about this patterns of the FED rate and BTC price? Maybe we need to use it with other aproaches such as inflation rate, money supply etc together to make a succesfull fundamental analysis? Write your thoughts in the comments.
💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
📊When you come to the crypto vs When you really need to comePush the like if you come to cryptomarket at #1 and #4 areas or write a comment if at #2, #3, #5. I bet it will be more likes. Today, i`ll explain you why you need to come at #2, #3, #5 in crypto and most of traders don`t understand it.
As you can see the yellow areas is always the "hype" area when most of the newbees are coming at the crypto market and any other markets. It`s actually not bad because more and more people discover the crypto and trading of crypto.
What is wrong with the bear market? Market is crashing, everithing is bad for short-term for hodlers. But guys, traders can open short trades using futures trading. Essential thing that is potential to earn. At the falling market it`s much less then at the BULL market.
EXAMPLE: if you open a short with x1 leverage even from ATH to the bottom it`s just: +83%, +71%, +70%. If you open the long with x1 leverage or just trade the bull market which start at white areas you can earn +350%, +1300% and it`s just about BTC.
What about the altcoins? They have unexpected % of growth. Most of them grow higher than Bitcoin. Some of them make x10, x50, x100. And it`s only at the BULL MARKETS which start at white areas.
So if you are at crypto now start to study and be ready for the next bull market. Please don't follow the majority and leave the market when everyone else does. Your time will come soon, if you prepare for it well.
💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
📊Bitcoin HIDEN pattern!Every pattern in trading is created by someone. Why not be the author of the pattern? If you see a succesfull price pattern, you can make a backtest and use it in your trading strategy. In this idea i`ll show you some BTC pattern which the crypto follow for 4-5 years.
This pattern is very simple. After the consolidation the price break the range and fell. After dumpo for 50-60% which is liquidated all margin long traders the price continue it`s rise for XXX%. The key thing is the consolidation for 5-12 months.
Consolidation is the price movement is the range. Price can consolidate not only inside the patterns as it shown on the chart (channel, triangle, etc.), but just inside the price range $10-12k, $18-22k etc.
How does consolidation happen? Consolidation in the price range appears because of the uncertainty of traders in which direction the price will go. When there is conditionally 50% of long traders and 50% of short traders in the market, the price can move only in a narrow range due to uncertainty.
What happens when price breaks through a consolidation? For an example of consolidation, let's imagine that price is a spring. The harder the spring is compressed, the more it bounces back. When the price breaks through the consolidation, it contracts like a "spring" and most often falls by 40-50%, as you can see on the chart.
After such a huge drop and the liquidation of all long traders, price bounces up. Since most long traders became fuel for the fall, now the short traders who wanted to make money on the fall become fuel for the growth. Now it`s the same!
Is the BTC reach the bottom and can start the growth? A lot of traders expect the DUMP to 12-14k and as we know everyone can`t earn, only prepared one.
What the price mark will be the bottom for BTC? Or BTC already there? Leave your thoughts on it in the comments!
💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
⌛️ Bitcoin vs. Altcoins? Which will have more power?Hello, dear TradingView members.
Here is an idea about Bitcoin and Ethereum and their Dominance.
This idea aims to talk about what will happen after the correction ahead of us in the near future.
There are four charts on this idea:
The first one is the Bitcoin weekly chart.
This chart shows that Bitcoin is on edge and pushing down.
This descending trend is confirmed by the Elliotte Waves and Fibonacci Retracements levels.
The price of Bitcoin has already pulled back from point C to D, and once again got rejected and now is continuing the correction.
Once the price gets to the solid support, it might fall even more due to psychological panic in the market.
The second chart is the Ethereum weekly chart.
This chart also shows that ETHUSDT is pushing down even more and has already crossed vital support levels.
However, four of my Fibonacci indicators show that the solid support offered on this chart is powerful and be a good level for opening long positions.
The third chart is the Bitcoin Dominance chart.
This chart shows that the liquidity in the cryptocurrency market is pouring into the Bitcoin market. This liquidity is coming from Ethereum and other altcoins.
This suggests that Bitcoin for future long positions is a better choice since it is becoming more stable than other crypto assets.
The fourth chart is the Ethereum Dominance chart.
This chart shows the liquidity exiting from the Ethereum (Mother of altcoins) market.
When this happens, it clearly means that ETH and other altcoins are becoming weak and less stable than BTC due to the low volume of liquidity and power.
To sum it up, our result is:
By breaking the Bitcoin Dominance upwards and the Ethereum Dominance breaking down, it can be concluded that bitcoin is in a better position than the altcoins.
So Bitcoin will have more growth and less decline than the market.
Moreover, we can profit more in long trades from Bitcoins and short transactions from altcoins.
In the near future after the corrections, we also use RSI to measure the accuracy of this forecast.
This correction is taking place because the market needs to fill the gap. If you need to know about Bitcoin's gaps, this chart might be helpful:
If you need to learn how RSI works, this chart might be helpful:
If you need to learn how Fibonacci works, this chart might be helpful:
I hope this idea can be helpful.
Let me know if you guys have any questions;
I will be more than happy to help.
Good luck, and thank you.
BITCOIN IS THIS BOTTOM OR JUST STARTING At the outset, I would like to inform you that I have been a big fan of the wave theory in the last five years, but in science there are no feelings and biases, as well as in markets, and also the theory has not reached the limit of idealism and some critics say that it did not reach the limits of theory, it is only a hypothesis and It has been going on for such a long time because of its many possibilities. anyway , this discussion will be as simple as possible and easy for the public to understand, even non-specialists, and from them I will present some scenarios that I see as possible to happen on the Bitcoin chart.
# The first scenario:
Have we finished the FLAT and are heading to ATH ???!!!!
I wish if the answer to this question was clear and certain , this perception takes the third place out of four, and the reason for this is the downward wave from the top of 69 to the current levels not clear five wave .
Well, according to this scenario, the end of the correction is expected at the 23k, from which we start a new bull market (remember this scenario takes the third place among the possibilities)
The second scenario:
It is a rare but possible pattern, like what happened in the Dow Jones Index in 1966, which is the expanding triangle
In the wave principle, there are four triangular patterns(Without counting the irregular top) , and the below chart shows the expanding pattern, and it may develop and change into a second type of the family of triangles. One must be careful that the triangle is one of the most difficult patterns to anticipate early, and its volatility is very high.
There may be some intellectual fanaticism on the part of some wave analyzers regarding the internal structure of waves. they assert that they be from the zigzag family, and this condition is not true
The third and fourth scenarios:
They are the most important and most likely, which is that the wave from 69 to the current price is the first corrective wave of the model and it is formed with a 3 waves structure that is very satisfactory to the rules and guidelines, anyway, the main reason for my preference for this scenario is to study time cycles (note that time cycles are more scientific and have been worked on a lot), so since we are in the A wave of the structure and this wave was 3 waves , so the possibilities will be limited to that the pattern It evolves and takes a flat or develops and takes a triangular shape and the balance tends to the triangular model due to the economic and global conditions
I know that this perception of the next movement is boring and takes the sideway character (and sorry, but your Lamborghini will be delayed this time ) and the correction may end in the first quarter of 2024, but remember the markets are not devoid of opportunities
Well, what do we gain after all this talk showing charts ??
It is very simple and here lies the strength of the wave theory, so that all the mentioned scenarios agree in the upcoming movement, which is the rise to the levels of 48-50 thousand. This wave at least gives twice the profit without using the leverage, and what do you expect to happen to the rest of the alt coins in this rally : )
I wanted to post some mysterious Fibonacci sequences for Fibonacci fans but it might take a lot of time
Anyway, a little advice from me
Life is more beautiful than the trading markets, do not be addicted to the price movement and lose the most valuable thing you have (your time) I wish luck to everyone
My greetings