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BTCUSDT. No context for salesHello traders and investors! I've seen several ideas for selling based on different patterns, but I'm not seeing the context for selling just yet. On the daily timeframe, we still have a sideways range. The seller's vector 9-10 has hit the obligatory target, but it hasn't reached the lower boundary of the range at 59005. This lower boundary represents a buyer's area. Selling would be advisable below this boundary if it's defended by the seller. On the hourly timeframe, we also still have a sideways range. The seller's vector 5-6 closed below the lower boundary at 64493. However, the buyer brought the price back into the range and absorbed the key bar of the seller's vector (with the highest volume). The key bar on the chart is marked as "KC." Again, the lower boundary is a buyer's area. Selling would be advisable below this boundary if it's defended by the seller. There are threats to buying at 67929 (the high of the last seller's bar on the daily timeframe). Under certain conditions, I'll be looking for buys with targets at 69000 and 71305.
by AlexeyWolf
ETHUSDT. Medium-term and short-term analysisHello investors and traders! On the weekly timeframe, we have a sideways movement. The current vector is for buyers 8-9. The first target, 3580.34, has been reached by the buyer. The next target (if the buyer surpasses 3580) is 4372. If the weekly bar closes below 3056.56, the likelihood of further price decline will increase. Considering an investment deal would be advisable if the price falls below 2800. On the daily timeframe, we observe a sideways movement, and yesterday the seller played out their vector 7-8 and closed the bar below the boundary of the sideways range, at 3056.56. I am monitoring the actions of the buyer. If they bring the price back into the sideways range (above 3056.56), I will assess their strength and possibly consider buying.
by AlexeyWolf
ORDIUSDT. The seller has reached targets The seller has reached their targets from the previous review - 55.2 and 49. On the daily timeframe, there is a sideways market, and the seller's vector 7-8 has hit all targets. The price touched the lower boundary of the sideways market at 40.685 and showed a bullish reaction. I am observing the actions of the buyer. There is a threat for purchases - the seller's zone with a lower boundary at 51.532 (red background). On the hourly timeframe, there is a downtrend. The beginning of the last seller's impulse is at 54.68. Notice how the buyer cannot overcome 50% of the seller's last impulse (46.84). I will be looking for a selling opportunity from the seller's zone on the daily timeframe. Pay attention to the 5-minute timeframe. There is a sideways market. If the buyer attacks point 4 of the sideways market (49.88) and enters the zone of 51.532 (while on the hourly timeframe, the buyer does not absorb the last seller's bearish bar), and then the seller defends 49.88, we can look for sales to play against the opposite boundary of the 5-timeframe sideways market and possibly update the local minimum.
by AlexeyWolf
AVAXUSDT. Looking for salesHello traders and investors! On the daily timeframe, we observe a sideways trend. The buyer's vector 4-5 has played out. The price is at the upper boundary of the sideways trend, and we can consider looking for sales as an idea to implement the seller's vector 5-6 with the first target at 40.07 (then 34.83, 32.3). After the previous review, we notice a strong resumption of the seller from the upper boundary of the sideways trend at 49.96. I anticipate that the price will test the local minimum of 44.97. On the daily timeframe, we also see a sideways trend. The current seller's vector is 8-9 with the first target at 45.17. It's preferable to look for sales from the upper boundary of the sideways trend on the hourly timeframe, ideally from the seller's protection level at 48.17. Alternatively, look for sales below the level of 44.97 in the absence of buyers there.
Short
by AlexeyWolf
OPUSDT. The seller has reached their goalsIn educational article some week ago, I wrote that most financial instruments spend more than 75% of their time in this sideways market mode. So, knowing how to trade in sideways markets is a important skill for traders and investors. I highlighted 5 skills that help effectively trade in sideways markets. Discussing the first of them - how to combine the higher and lower timeframes when looking for trades, I provided a practical example on the OPUSDT chart using the daily and hourly timeframes. Quote: On the daily TF, we observe sideways movement since December 22, 2023, with the bearish vector (11-12) being relevant. The first target of the bearish vector, 3.119, was reached on March 19, 2024. The second target (2.822) and the third (2.611) remain valid The seller has reached their goals. Currently, the price is below the lower boundary (2.611) of the sideways trend on the daily timeframe. We haven't seen any buyers yet - there's no bullish candle. It is advisable to look for buying opportunities when the buyer brings the price back into the sideways trend. Sales can be sought from the defense of the seller at the level of 2.611.
by AlexeyWolf
AVAUSDT. We have context for both selling and buying. It's an interesting situation. We have context for both selling and buying. On the daily timeframe, there's a sideways movement (upper boundary - 49.96). The price has now returned to it, but the daily candle has not yet closed. If the daily candle closes inside the sideways movement, then we can look for sales, and the bearish vector 5-6 with a target at 32.3 will be relevant. There are two threats for the bears along the way in the form of buyer zones (blue background). The first one is at 48.3, which is currently being interacted with. The second threat is the buyer zone with the upper boundary at 45.18. On the hourly timeframe, the price is at the lower boundary of the sideways movement (48.3). The bearish vector 11-12 has played out. The launch of the bullish vector 12-13 with a target at 61.95 is possible. In summary, the daily and hourly buyer levels coincide (48.3). If the buyer shows itself at this level, then we can consider buying, taking into account the seller zones on the daily chart (red background). If the seller defends the breakout of the level 48.3, then we can consider selling, taking into account the daily buyer zone (upper boundary 45.18), inside which, by the way, lies 50% of the last daily buyer impulse. For a more detailed explanation of how to read charts and consider different timeframes when looking for trades, you can refer to the article
by AlexeyWolf
AVAXUSDT. On the Daily timeframe, selling takes precedenceOn the daily timeframe, we see a sideways movement with the upper boundary at 49.96. The price has been above the upper boundary for the last 20 days, but yesterday it returned to it and stopped at the 50% level of the last buyer's impulse on the weekly timeframe. This is clearly visible on the hourly timeframe: At the top, a seller's zone has formed with the upper boundary at 48.3 (red background), and at the bottom, a buyer's zone with the upper boundary at 45.18 (blue background). I anticipate price interaction with the seller's zone of interest. If the seller defends the range of 48-50, we can consider the possibility of sales, and the bearish vector 5-6 will become relevant with a target at 32.3. However, on the way to this target, sellers may be hindered by the buyer's zone, with which there was just interaction and a bullish reaction began, as clearly seen on the hourly timeframe. On the hourly timeframe, the price is below the lower boundary of the sideways movement at the level of 48.3. The bearish vector 11-12 has already played out, and we can expect the launch of the bullish vector 12-13 with an ambitious target at the level of 61.95 (ambitious, because the buyer will have to overcome the seller's zone on the daily timeframe). To launch the bullish vector, the buyer needs to raise the price above the range of 48-50 and protect it. For a more detailed explanation of how to read charts and consider different timeframes when looking for trades, you can refer to the article
by AlexeyWolf
BTCUSDT. Monitoring the seller's actions.Hello traders and investors! It's time to update the forecast. During the last review (23/03/2024), we observed a short vector 7-8 within the sideways movement on the daily timeframe. The target of the long vector 8-9 was 72419 (see the chart from the previous review). Currently, the long vector 8-9 has reached this target. It is advisable to look for sales at the upper boundary of the sideways movement. However, for short positions, the first threat is the buyer zone (blue color) with the upper boundary at 69674, which formed on the daily timeframe. And the seller has not yet shown itself on the hourly timeframe - the price at 17 hours is near the level of 72419. There is a high probability that the buyer will reach the upper boundary of the sideways movement at 73777. I am waiting for a reinteraction of the price with the level of 72419. For a more detailed explanation of how to read charts and consider different timeframes when looking for trades, you can refer to the article
by AlexeyWolf
BTCUSDT. Short term analysisHello traders and investors! On the daily timeframe we see a resumption of buyers from the buyer's zone (blue background) with an upper boundary of 69674. On the hourly timeframe, a sideways trend has formed, where the buyer's vector 4-5 has already reached the obligatory target. Searching for sales is risky because there is a resumption from the buyer's zone on the daily timeframe. It is not systematic to look for purchases at the upper boundary of the sideways. It is better to look for purchases at the lower boundary of the sideways trend, for example, from the buyer's protection levels at 69071, 67518. Sales are advisable to look for below the level of 67518 as an idea for implementing the seller's vector 9-10 of the sideways trend on the daily timeframe with the first target at 64493 (second - 60775). As before, I am waiting for a repeated interaction of the price with the level of 72419. By the way, purchases could be found yesterday on the 30-minute timeframe (see the chart).
by AlexeyWolf
ETHUSDT. Monitoring the seller's actions.Hello traders and investors! It's time to update the forecast. During the last review (22.03.2024), we observed a short vector 5-6 in the sideways trend on the daily timeframe. The target of the long vector 6-7 was 3722 (see the chart from the last review). Currently, the long vector 6-7 has reached this target. At the top, there is a seller's zone with a lower boundary of 3722 (red background). So far, we haven't seen any reaction from the seller in this zone. It is advisable to look for sales at the upper boundary of the sideways trend. However, for short positions, the first threat is the buyer's zone (blue color) with an upper boundary of 3505, which formed on the daily timeframe. There is a high probability that the buyer will reach the level of 3822. On the hourly timeframe, a sideways trend has formed with boundaries of 3727 and 3665. I am waiting for the price to interact with these boundaries. We can look for a trade opportunity based on the protection of these boundaries. For a more detailed explanation of how to read charts and consider different timeframes when looking for trades, you can refer to the article
by AlexeyWolf
Trade in a sideways marketMain price pattern of financial instruments So, when we talk about the price of financial stuff, like stocks or crypto, it often moves in specific ranges over different timeframes, right? Whether it's weekly, daily, hourly, or even minute charts, prices tend to hang out in these ranges for a while. Traders call this kind of price movement "consolidation," "range-bound," or simply a "sideways market." In this article, we'll just call it a sideways market or range. When prices are stuck in this sideways action, they can break out with a sudden burst of momentum, kickstarting a trend, or they might just keep bouncing around, forming a new sideways pattern. Let's check out the daily chart of BTCUSDT starting from October 2021. On the chart (see above), we've marked those periods where the price was moving sideways with blue markers. Since October 2021, we've spotted 7 of these sideways patterns. We label the first point of each sideways move as "1". Out of 884 trading days, the price was stuck in this sideways action for 758 days (884 - 72 - 39 - 15), which makes up about 85%. This means that throughout this whole period, you could've been looking at trades from one edge of the sideways range to the other. Based on my estimates, most financial instruments spend more than 75% of their time in this sideways market mode. So, knowing how to trade in sideways markets is a super important skill for traders. And for investors, understanding these sideways moves can really amp up the profitability of their investments by pinpointing better entry and exit points. For example, right now, considering buying BABA stocks might be a good idea because the price is chilling at the bottom of a sideways range on the weekly chart. Example1 Mastering the Skills for Successful Trading in Sideways Market Being able to effectively trade within trading ranges, between their boundaries, requires not only a certain amount of knowledge but also the development of specific skills. Initially, one must grasp the theoretical foundations and then apply them in practice, gradually honing their skills. Let's look at the necessary skills: Skill 1: Understanding and applying the Concept of Time Frame (TF) Interconnection: higher TF, lower TF. Grasping the context of the higher TF in relation to the sideways market TF. Skill 2: Identifying sideways market: determining the absolute and current boundaries of the range, as well as the current direction (vector) of price movement. Skill 3: Recognizing zones of interest for buyers and sellers. Skill 4: Determining the presence of buyers at the lower boundary (bottom protection by buyers) and sellers at the upper boundary (top protection by sellers). Skill 5: Adhering to risk management principles when entering trades (especially crucial for traders). Each of these skills is based on a vast amount of knowledge that needs to be absorbed first and then applied in practice. The journey can be long and sometimes tedious. Is there a way to hack this system and shorten the time it takes to acquire knowledge, develop skills, and start trading? Well, there are options. For example, you can use technical indicators (such as RSI, Bollinger Bands, ATR, etc.) to make buying or selling decisions. Or you could completely bypass the process of acquiring knowledge and skills and rely on signals from Telegram channels or expert opinions. But what will you find there about trading in sideways market (ranges), where the market spends more than 75% of its time? This series of articles is written for those who are ready to take control of their financial destiny, who strive to understand how financial markets work, and who want to master the skills of independent trading and making more informed investment decisions. Here you will find the knowledge and tools to start understanding what is happening in the financial markets and how to profit from it. I don't promise any magic pills or "money" buttons:). So, let's get started. Skill 1: Applying the Concept of Time Frame Interconnection The higher time frame (TF) always takes precedence over the lower one. For instance, if we observe on the daily chart that the market is in a seller's zone (which is determined by Skill 3), then on the hourly chart, we need to analyze the seller's actions (Skill 4) and primarily look for selling opportunities. However, there might be a situation where the seller is inactive, and the price starts to rise due to buyer pressure (in this case, Skill 4 comes into play again). Example2 On the provided chart, areas of seller interest are marked in red, while buyer interest areas are marked in blue. Let's examine the period from March 25th to March 27th, highlighted in yellow on the chart. On the daily TF, we observe sideways movement since December 22, 2023, with the bearish vector (11-12) being relevant. The first target of the bearish vector, 3.119, was reached on March 19, 2024. The second target (2.822) and the third (2.611) remain valid. On March 25th, the price returned to the seller's zone on the daily chart (the red zone with the lower boundary at 3.680). On the hourly chart, on March 25th, the price trend reached the daily seller's zone and formed a range with 7 points. The breakout from this range occurred downwards on March 27th. Therefore, in this range, it was advisable to look for selling opportunities from the upper boundary and riskily consider buying from the lower one. Similarly, you can make investment decisions by analyzing, for example, the weekly and daily TFs. To be continued... P.S. This is indeed an interesting point! Despite the fact that the market spends more than 75% of its time in sideways movement, indicators and strategies specifically designed for trading in this mode have not gained as much popularity as other trading approaches. Even on the internet, including TV and trading Telegram channels, signals or analyses based on identifying sideways movement are very rarely encountered. If you have experience or knowledge about trading methods in sideways markets (including indicators), please share them in the comments!
Education
by AlexeyWolf
BTCUSDT. Waiting for buyer action Highlights Preference (buy/sell) - neutral There's no context for buys at the moment. Looking for sales in a daily uptrend without having a downtrend on the hourly TF is aggressive. Description Daily TF The daily trend is bullish, with the last buyer impulse from 14.10.23 to 05.12.23. Buyers started a renewal from the level of 40222 on decreasing volumes, and now the price is returning to this level. We await the price at 40222 and observe the buyer's reaction. Slightly below this level is the discount zone of the bullish impulse (upper edge ~ 39640). In case the buyer defends the 40222 level, the priority is to look for buys aiming for 43475. If the 40222 level isn't defended by buyers, there's a high chance of price decrease towards the buying zone with the upper boundary at 37649. Hourly TF On the hourly TF, there was a range with the lower boundary at 42821, from which the price broke downwards. There was an attempt by buyers to bring the price back into the range; however, the seller defended the breakout without initiating a downtrend yet. Buys can be considered upon the price's return to the range. If the seller triggers a downtrend (defending the break of 40222), sells can be considered with the target being a retest of the local minimum formed upon the breakout.
by AlexeyWolf
BTCUSDT. Waiting for the local high to be updated. Highlights Waiting for the price to interact with the upper boundary of the sideways range at 37980. Preference (buying/selling) - neutral. Description On the hourly timeframe, a sideways movement has been observed since November 9th. The upper boundary of the sideways range is at 37980. Judging by the wicks of yesterday's hourly candles (see chart), buyers are pushing the prices beyond the sideways range. Buying at the top of the range is not systematic. But if you really want to trade, you can aggressively look for buys when buyers defend the wicks of yesterday's hourly candles. (if the price returns there before breaking out of the sideways range). 31812, 36677 - boundaries on the five-minute timeframe 37302 - boundary on the one-minute timeframe.
by AlexeyWolf
BTCUSDT. Waiting for actions from buyers and sellers.Highlights The previous scenario played out. Awaiting actions from buyers and sellers. Preference (buying/selling) - neutral. Description On the daily chart, buyers resumed from the discount zone (bottom 50%) of the last daily impulse and absorbed the seller's candle on increased volume, forming a buyer's zone (blue color, upper edge of the daily buyer zone 37337.57). This scenario was described here On the hourly chart, the price is at the upper boundary of the range, but considering the daily context, selling immediately is risky. It is necessary to assess the actions of the seller and the buyer. If the seller breaks the level of 37337.57 and defends it, you can look for sales with the first target at 36744 (upper edge of the daily buyer zone), the second target is 36000. Conservatively look for buys if the buyer breaks the upper boundary of the range (37972.24) and defends this breakout.
by AlexeyWolf