Price is what you pay, but value is what you getWarren Buffett is the most successful stock investor in the history of the world. Of course, which we know now. "The Oracle of Omaha" - that's what fans of his "magical instinct" call Buffett. But is that the point?
As an 11-year-old child, little Warren was inspired by the possibilities of the stock market and invited his sister to participate in his first investment. These were preferred shares of Cities Service. The sister agreed to take the risk and Warren bought 3 shares at $38.25. But then, the wave of enthusiasm turned to disappointment and guilt - the shares fell to $27. Buffett's first investment "enterprise" lost 29% of the amount of investments that were borrowed. We can only imagine how the young investor felt at that moment, but I think this feeling is familiar to many: positive expectations clashed with the harsh reality of the stock market. Warren didn't sell shares. But when the price for them reached $40, he did it instantly. Apparently, considering this whole undertaking a mistake. The income was 4.6%, the sister received her money back. Everything worked out. Surprisingly, Cities Service's share price rose to $202 a few days later. Or +428%, Warren!
The entire subsequent history of Warren Buffett confirms that he drew the right conclusions from the experience of his childhood. He realized that the price on the stock exchange may not reflect the value of the company itself. Buffett began to study accounting, the principles of fundamental analysis of enterprises, the ideas of Benjamin Graham. This allowed him to develop an approach that consisted in determining the real value of the company, different from the one that we see on the stock exchange.
"Price is what you pay, but value is what you get".
From myself I will add: and if the value is higher than the price - such an investment is considered reasonable.
In the chart above, the price history of Buffett's main holding company, Berkshire Hathaway . As well as the S&P500 index. As you can see, his company "overtakes" the index, which means it shows much better performance than the average value of 500 US companies.
Perhaps, in addition to deep analysis of the companies' business, Buffett's unique investor instinct helps, I don't know. But the fact that he is a real Wizard of our time is an indisputable fact for me.
Analysis
Fundamental analysis in cryptoThrough fundamental analysis , we can try to detect the authentic and objective value of cryptocurrencies in spite of their market price.
Through these techniques, we can assess whether a cryptocurrency is undervalued or overvalued, and we can detect a trading opportunity.
With fundamental analysis , traders evaluate and study what can affect the price of a security, such as external factors or events. This type of analysis takes advantage of tools like periodic financial statements, financial ratios, economic forecasts and other types
of additional information that can affect the value of a security.
There are different approaches to fundamental analysis that analyse micro and macroeconomic variables in different ways:
1. Top-down approach: through this approach, the trader analyses macroeconomic variables first and then microeconomic variables. Global information is taken in first, followed by more detailed and specific values and variables addressed. With this approach, the trader looks at the world economic situation, and then looks more at the most economically attractive countries, along with the sectors with the most potential, and within them, chooses which ones are most convenient to invest in.
2. Bottom-Up approach: this approach is the opposite of the previous one: first the trader chooses companies with growth potential, analyses the sector they operate in and then the economic situation of their countries; the overall global economic situation is the last thing to be analysed.
THE ADVANTAGES:
This approach allows the investor to collect and analyse information external to the markets but that might still influence prices. This way, the investor has a clearer vision of the reality of the market.
THE DISADVANTAGES:
The trader using fundamental analysis needs more thorough knowledge and experience of accounting, business and, in the specific, the sector of interest.
Moreover, investment terms with a fundamental analysis are longer because it requires more studying and background with respect to other analytical tools, like technical one.
It can also be outweighed by chance factors, such as physical disasters affecting commodity prices and companies in general. In general, markets can also be surprised by unexpected changes in economic and political scenarios.
In the specific case of crypto markets, fundamental analysis can be used to analyse the exterior components that can affect cryptocurrencies.
Fundamental analysis can be carried out by looking at its use cases or community, but also at the team behind every specific crypto project, something that tells a lot about its
overvaluation or undervaluation.
Indeed, in the case of crypto markets, there are no financial statements, and therefore they cannot be evaluated as normal financial assets. Most cryptocurrencies are still in the
developing stage and they do not have a lot of real-world applications; they rely mostly on miners, users and, of course, developers.
It can be of great importance given that crypto markets are relatively more volatile and less stable than others, and due to their irregular situation investors react quickly to exogenous factors. These factors can vary and go from regulatory pressures to simple tweets - take Elon Musk as an example.
Fundamental analysis can indeed help comprehend the fair value of crypto assets - data about this can be found on different websites, such as Reddit or Telegram. The use of technology is of utter importance.
The investor can assess the usability of the adoption of the cryptocurrency he's interested in, but this tool can also be used to study how governments value cryptocurrencies and whether they want to implement new regulatory policies about it. We can also identify the progress that it's being made in terms of technology, such as how the activity of cryptocurrency is developing, along with its software or media coverage - all these factors contribute to
increasing the crypto asset's value.
From a psychological point of view, it can also help the investor trade with more confidence, knowing that a thorough analysis has been carried out. When the analysis is done daily, it
can help you develop a finer investment strategy.
In terms of financial metrics, what can be used is:
Market capitalisation: the investor can look at the total market worth of cryptocurrency, which indicates whether there is space for growth. To get that, you multiply the current price per coin by its supply.
Liquidity, or how easy it is to buy or sell the asset. A liquid market is a competitive market and is usually favoured by investors, also because it entails a lower bid-ask spread.
Volume:
it spurs liquidity because it is telling of how much money has been exchanged for a certain asset.
Fundamental analysis usually prioritises the assessment of transaction values. If the transaction value is consistently high, it means that the cryptocurrency is in steady circulation.
Fees:
they reflect the demand on the blockchain. Every cryptocurrency can have its own transaction fee.
The assessment of the fees paid over various periods gives the
trader an idea of how secure the crypto asset is.
Supply mechanisms:
general microeconomics state that when supply is low and demand is high, price rises. A general belief for cryptocurrencies is that when supply runs out, the price will rise (this is, for example, a general prediction of Bitcoin holders). On the other hand, investors can also use project metrics for their fundamental analysis:
Whitepaper:
it is a technical document outlining the purpose and operation of the
project. It should comprise the blockchain technology solutions, the use cases for the currency, the planned features and upgrades, sale and team information, and tokenomics (the factors that impact the tokens' use and value).
The team:
crypto teams are easily accessible to assess nowadays so that the investor can learn more about them and their credibility.
The competitors:
the investor can conduct an analysis of the crypto assets; competitors. If there are other cryptos which are more widely adopted or valuable, maybe it is best to back off from the item of interest.
Last but not least, important instruments when evaluating cryptos through fundamental analysis are Blockchain metrics or On-chain metrics. The rising popularity of blockchain
has made sure that lots of different types of information could become extremely popular, such as the number of active users, total transactions and transaction value.
There are three fundamental metrics in this case:
1. Hash Rate :
this is a measure of the mining machine's ability to conduct hashing computations in an efficient way.
The hash rate also determines the profitability of the miner, as it indicates the likelihood that a block will be mined, and, indirectly, the chance of receiving the block reward. An investor should look at cryptos with a more extensive network because they are more resistant to attacks or data manipulation.
2. Status and Active Addresses:
active addresses measure the number of dynamic blockchain addresses over a period of time. They are helpful in comparing the growth or decline of the activity or interest in the coin or token. The investor can also get to
the active address through the computation of the total number of unique addresses over time (and a comparison of the results).
3. Transaction values : they can be determined for the assessment of the regular circulation of the crypto asset. It indicates how much money was exchanged on a given period, and therefore, the number of transactions.
The 3 TYPES OF CHART YOU MUST KNOW | Trading Basics
Hey traders,
In this educational video, we will discuss 3 different chart types:
range bar chart,
line chart
candlestick chart.
I will explain to you the difference between them and will teach you why they are important.
❤️Please, support this video with like and comment!❤️
Correlation between FX and Equities! (Chicken or the Egg?)Which came first, the chicken or the egg?
Traders all over the globe are constantly looking for an edge, something that's going to give them an extra indication on market directional movements prior to them unfolding. I know from personal experiences and from chatting people at the firm that many traders lean towards finding correlation between the equities market and the FX market. There are a lot of analysts out there that say the equities market is what moves the FX market, and in return there are a lot of people that say the FX market is what moves the equities market.
So, which one is it?
Reality is will never know. There have been many of times where the FX market and shows clear indication of direction and then about a day later or a few hours later we have the equities follow suit. For example the RBA's recent decision to hike interest rates by .25% instead of 0.5% sent the Aussie dollar down, but when you move over to the AUS200 or look at General Equities in the ASX, you'll see that they had their biggest day in 2.5 years.
Then there are times, and this is more into day trading, where the indices in the equities movements tend to correlate well moving into the FX markets.
So there is evidence to support both sides. Not ideal.
It goes without saying that correlation between equities and FX is slowly starting to fade as volumes kick up since we are in the technologically advanced era. But, what is or was the correlation and how does it work?
The basic theory (aged) is that when equity markets rise, confidence in that specific country grows well, leading to an inflow of funds from foreign investors. Therefore, equities go up, FX value goes up. It's simple supply and demand when you look at it. If the equities are going up and you're a foreign investor and you want to buy into those equities, it creates demand for holding, let's say, the US dollar if I wanted to buy into the S&P 500.
On the flip side, when the equity markets are falling. Then confidence falters, causing investors to convert their invested funds back to their own currencies outside of that country.
This is a general theory and I don't recommend basing any of your trading decisions on this, because if you actually have a look at the charts and the correlation, you'll notice that recently it's not been too hot. While you do get a general directional bias, one tends to move before the other and they tend to be quite random in which one goes first. If you have the ability or the skill to be able to work out when something is correlating and when something isn't, then for sure I think you'll be able to find an edge in the market trading some kind of correlation between equities and FX.
One correlation I have seen to be quiet useful in recent times is the S&P 500 And the Nikkei. Although in the Asian session the Nikkei is open in the S&P 500 isn't. Usually you see the S&P move and the Nikkei follow suit. Keep an eye on that correlation and tell me if you find any patterns.
As a whole, trading correlations can give you an edge in the market. It can provide you with valuable information when it comes to trading, whether you are trading FX or trading Equities. But it's not as simple as it seems. It will take more diving and understanding the markets on a deeper level to know when their correlating and to know when to ignore.
I hope you guys have enjoyed this article. If so, please give us a like leave and a comment. It does help the post a fair bit and I'll see you next week for some more content. Happy Trading!
-Jordon Mellor
Analyzing with PrecisionWhen it comes to price action trading, price analysis is at the foundation of our trading methodology. This analysis dictates all our eventual actions in trading. So seeing that price analysis is at the core of the price action trader's trading, we want to assure that we analyze with as much precision as we can. So how is that done? Let me explain how I go about making sure my price analysis is as precise as possible. To begin with, it starts with a "state-of-mind". A clear mind that can notice the subtle hints in price that sway our analysis. In order to achieve this state-of-mind, one must understand what a "hasty" and "impatient" mind is in comparison to a "calm" and "patient" mind. The impatient mind is easy to replicate. Try breathing with fast and short bursts; similiar to the breathing pattern one gets when sprinting. Notice the impatience in the mind.That although seems sharp, lacks the serenity in the mind that one has when they are not sprinting. On the other hand, the calm and patient mind can be glimpsed through remembering what your mind feels like on a Sunday morning, in which you have no work, scheduled engagements or activities you must attend to throughout the entire day. This serenity that you experience is the patient mind you want to adopt when analyzing price. With this state-of-mind comes an effortless yet powerful foundation which allows one to analyze with precision. It's quite counter intuitive that precision comes with such relaxation. So how do I acquire this skill you ask? Well, it comes with practice. If the ability we wish to achieve is a relaxed mind when analyzing, all we have to do is "take our time" when trading. However, this is easier said than done. The markets, especially on the lower time frames, tends to activate the "impatient mind". Where we are analyzing while literally having the same mental state as when we're sprinting. Are breathing shortens and speeds up in repetition. Breaking this habit may take time. But if practiced, anyone can achieve a patient mind whilst analyzing price. Start by changing your eating habits. Most of us tend to finish our meals in 5-10 minutes. An outcome of our busy lives and also a great example of carrying over our impatient minds into moments of the day when relaxation should come naturally. Begin making it a habit to chew your food 50 times before swallowing. As you slow down the pace in which you eat, notice the sense of serenity and calmness in the mind. Compare it to the quality of the mind when eating fast. There should be an obvious difference. After 3 days of implementing this habit, slow down other aspects of your daily activities to acquire the same effect on the mind. You'll begin to notice the connection between the mind and speed of activity. If you hurry the activity, the mind will follow. If you slow down the activity, the mind will slow down and become more relaxed, patient and serene. Upon testing this correlation and becoming more adapt to it, try it on your price analysis. Take your time with your analysis. Slow down your analysis. If time doesn't allow, decrease the pairs that you analyze or trade the higher time frames. If you do, you'll begin noticing the subtle hints in price analysis that perhaps were hidden from you while you adopted an impatient mind.
I hope this helps!
Have a great day!
Ken
Bitcoin Vs Ethereum 2.0 ComparisonHey mates! Please be sure to advise which of these products you think will have the most alpha. If shared, please advise the timeframe you are thinking! (1year? 10years?)
It is the clash of the titans, and my last article that provided the hard #'s got a great deal of positive traction in the comments, but I did get some DM hate from some Bitcoin maxi's. Please let me know what you think I am missing in my comparison so the whole TradingView community can learn from your wealthy of knowledge.
Emotions aside, and Maxi agenda's muted - lets get logical.
Bitcoin:
#1 Myth B itcoin is protection against inflation
-->Worse inflation in decades & the price crashes
#2 Myth A supply cap in Bitcoin makes it scarce
--> **Bitcoin is itself inflationary for another 100 years**
#3 Myth Bitcoin is a store of wealth
--> Newly minted Bitcoins are continually sold to cover operating costs while going directly against ESG Goals (Constant Selling Pressure)
#4 Myth Bitcoin is safe
-->For $13 Billion Dollars a state sponsor can launch a 51% attack against it.
-->(A single aircraft carrier cost less than that)
-->A Quantum computer can hack any BTC wallet
**To fix Bitcoin (POS) it would take years & create yet another fork destroying its value**
A fork would have to be made, because the miners make a lot of money (Cost about $7k per token mined) dumping the coins onto the maxis. This is a constant selling pressure that prevents it from ever being a true store of value. The tokenomics are not entirely broken(unless you can not forgive all the coal burned in North Korea & China to mine BTC), but it is not going to be the best performer of all.
Ethereum:
#1 Benefit: (post-merge) Ethereum is POS
-->Staking encourages long-term passive yield (hodling for yield)
-->ESG Friendly, 99.5% more efficient than Bitcoin
#2 Benefit: Ethereum is deflationary
-->Every block will burn ETH, and rewards are slashed by 90%
-->Every Dex swap, NFT mint, transaction will lead to ever more scarcity
-->For the next 100 Years BTC will inflate supply while ETH deflates supply
-->Deflationary prices rise in BP*, Inflationary prices drop in BP
#3 Benefit: Ethereum is only improving while Bitcoin development continues to be stale
-->Eth has 220 core developers
-->Btc has 103 core developers
-->Thousands of additional projects are being built on-top of ETH (the next APPL/AMZN)
-->Transaction speeds and cost will improve with 'sharding'
#4 Benefit: It is MUCH safer than BTC
-->Slashing prevents validators from acting malicious
-->BTC is susceptible to 51% attacks
*buying power
SO WHAT DOES THIS MEAN TO ME?
I was screaming "back up the truck" when ETH dipped below $1k to long (I put 100% of my 401k into the product at that point, coupled with all my spot holdings being ETH)
Many ask if they missed the long? - I say this is only the genesis to generational wealth
I recommend joining me in being a validator. Get some passive yield in the most safe deflationary asset in crypto. Eth will fundamentally reward being a long-term investor which will be very attractive to institutions. This, coupled with ESG benefits and the fact ETH has actual utility will make this a product that a decade from now will be in many 401k products, for auto-biweekly deposits.
The miners have an agenda , when you hear 'oh its sooo green, volcano's power it' just know that a guy in Sweden handcranking a windmill to mine is hardly the norm. Coal burners powered it for years, and will continue to do so, and there is no amount of code that can fix this waste. Just because 20% is nuclear powered, does not mean that power could have been used elsewhere to drive down energy cost for others. People in Europe and France right now are about to get their largest energy bill in history this winter. Bitcoin POW is essentially broken long term, as they can not fix it to POS as it will hardfork again because the miners make a fortune dumping the newly minted (inflation) coins on new entrants creating a constant selling pressure. Bitcoin is a granddaddy relic. The myspace/AOL of crypto.
Please let me know what you think brother!
I am not a bitcoin hater, the price may rise, but I think the alpha is in ETH.
Bitcoin has been a huge blessing to me, but the people that purchased coins at $60k are not vibing with 'store-of-value' right now. The product is only worth what it is denominated in Fiat USD.
Why do people hate fiat? Inflation.
What is Bitcoin fundamentally for another 100 years? Supply Inflation
"But Zen! Your wrong! Because we know the max supply of coins the new minted coins are all priced in!!" - if this were the case the price would not be wildly volatile. Another Myth from the Peter Schiff of Bitcoin - that salesman Michael Saylor. ..or as he says 'missionary'.
It really has 'cult-like' vibes hearing that, be a critical thinker and consider generational wealth in ETH.
Interested in Learning More? Click on the chart below for an in-depth comparison:
Confirm Fundamental Analysis With The Olympus CloudWe used the unfortunate global environment to pinpoint natural gas as a trading opportunity in early 2022. We then used the Olympus Cloud to define entries and exits.
When we are trading on a longer term time frame, such as the daily, and we are confident our fundamental analysis is on point, we will risk up to 4 times more (5-8%) than we do in our high frequency trading (2%).
In these trades, we required the Olympus Cloud to indicate a higher swing low than the previous low combined with a confirmed bull cloud transition -- it's as simple as that. Our stop loss was under the cloud, and our targets were 2R, and 5R respectively.
As you can see in the data section below this post, our commodity account has grown by over 35% YTD, with 12% in additional gains currently open. The trade accuracy was 80% with an astonishing profit factor of over 9 -- meaning we gained 9 times our risk. Of course, if we had gone all in, these trades could have earned up to 80%, but had the trades not worked out we would have taken huge uncontrolled losses. When you are trading with proper risk management, you will not earn as much, but you will keep your profit margins in check and won't suffer massive losses that are hard to recover from if the trade does not go in your favor.
How to correctly mark out your S/R on the 4H timeframe.Quick educational video showing you how i personally like to mark out my 4H chart into clear zones in which price can move to and from, setting out the 4Hrly like so will give us clarity on the LTF and can help with entries targets and stops.
If you enjoyed the video and would like us to post more educational tips hit the thumbs up.
Sinusoidal movement in channel, GalaIn this post, I am not referring to physics and math equations and probabilities, I'm just saying that the Display method of the probability of a numerical event is between 0 and 1,
and just for easy recall in tutorials, I consider a number between 0 and 100.
0 indicates impossibility and we know that 100 indicates certainty.
Therefore, will explain this price movement detection method in a simple and concise way.
Consider a few general rules:
1- The price chart in a channel always tends to approach and return to the middle line of the channel.
This is true for all types of the uptrend, downtrend, and neutral channels.
2- Sinusoidal movement is dynamic (of course, I mean in the financial market) and the range of movement, speed, and volume can vary.
3- the price chart after hitting the middle line, faces 3 possibilities.
Usually, we consider these possibilities as 33 - 33 - 33 %
3-1- Reversal (pull-back ) to the previous direction.
3-2- Crossing the middle line and moving to hit the other line of the channel.
3-3- The price chart attached to the middle line of the channel continues to move.
(I will publish the third point and its reasons in another post because this one is a complete and long tutorial for himself)
4- usually In uptrend and downtrend channels, the movement angle of 45 degrees is the most appropriate movement angle to create sinusoidal movements (consider between 30 and 50 degrees).
And the 5:
"Keep this last point in mind in all the training you read and learn from different people.
From great masters in financial market analysis to an ordinary person like me "
** No theory, method of analysis, or analysis is ever 100% correct.
In probabilities, we always have the nearest states, which means that when we say 100 for the certainty of occurrence,
A probability may be up to 99.999999, but it is NOT 100%.
So remember that there is always a possibility of a movement or change contrary to our analysis, rules, or imagination, and
"This is one of the main reasons for placing a Stop-loss limit in trading"
-----------------------------------
Please write any advice or suggestions.
Dear friends, request any cryptocurrency pair, currencies pair for forex, and any index that you want to be analyzed and ask any questions.
Thanks for your attention
Monero : Every detail about latest hardfork + Technical AnalysisHi friends.
hope you are good.
today i want to tell you some details about August 14 Monero Hardfork.
after that we take a look at XMR chart and analyze that in price action.
Lets Do Them:
This fork happened at block 2,688,888, this Sunday (14 August).
It brought several fixes to the internal multi-signature mechanism to facilitate the exchange of information.
Such as key sets and data synchronization between wallets, as explained on their website:
“Multisig means that a transaction needs multiple signatures before it can be submitted to the Monero network and executed.
Instead of one Monero wallet creating, signing, and submitting transactions all on its own,
you will have a whole group of wallets and collaboration between them to transact.”
The network upgrade also included changes to its ‘Bulletproofs’ algorithm to boost transaction speeds
and reduce transaction sizes by an estimated 5-7%, as well as improvements to its multisig mechanism.
At the end lets see some after effects:
1-Monero’s block size increases.
2-XMR’s market capitalization rose
3-According to Lunarcrush.com , Both social mentions and engagement saw 121% and 180% hikes.
4-Whales began to showcase interest to XMR.
Hope you enjoy this article.
now lets see Technical analyze of XMR on marketcap:
please share me your opinion about this post in comments.
we will grow togheter...
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👇
Using BTC Dominance With Current Bitcoin PriceSome people monitor bitcoin price along with bitcoin dominance to help them make trading decisions. Although they are not iron laws, here are some potential outcomes that various combinations of BTC price and dominance may be indicative of.
1. When the price and dominance of BTC are rising, it could signal a potential bitcoin bull market.
2. When the price of BTC is rising but BTC dominance is falling, it could signal a potential altcoin bull market.
3. When the price of BTC is falling but BTC dominance is rising, it could signal a potential altcoin bear market.
4. When the price and dominance of BTC are falling, it could signal a potential bear trend for the entire crypto market.
5. While these two factors do not imply a definite bull or bear market, historical observations suggest a correlation.
ETH 2.0 Merge Upgrade Detailed and Release DataHello all traders and investors.
according to go approch ETH 2.0 Merge upgrade
Today i decide to explain more about that and tell you more
about wahts going to happen.
I try to explain as simple as possible
Whithout killing time lets go...
What is The Merge?
The Merge represents the joining of the existing execution layer of Ethereum (the Mainnet we use today)
with its new proof-of-stake consensus layer, the Beacon Chain.
It eliminates the need for energy-intensive mining and instead secures the network using staked ETH.
A truly exciting step in realizing the Ethereum vision – more scalability, security, and sustainability.
It's important to remember that initially, the Beacon Chain shipped separately from Mainnet.
Ethereum Mainnet - with all it's accounts, balances, smart contracts, and blockchain state - continues to be secured
by proof-of-work, even while the Beacon Chain runs in parallel using proof-of-stake.
The approaching Merge is when these two systems finally come together, and proof-of-work is replaced permanently by proof-of-stake.
Merging with Mainnet
Since genesis, proof-of-work has secured Mainnet.
This is the Ethereum blockchain we're all used to—it contains every transaction, smart contract, and balance since it began in July 2015.
Throughout Ethereum's history, developers have been hard at work preparing for an eventual transition away from proof-of-work to proof-of-stake.
On December 1, 2020, the Beacon Chain was created, which has since existed as a separate blockchain to Mainnet, running in parallel.
The Beacon Chain has not been processing Mainnet transactions.
Instead, it has been reaching consensus on its own state by agreeing on active validators and their account balances.
After extensive testing, the Beacon Chain's time to reach consensus on more is rapidly approaching.
After The Merge, the Beacon Chain will be the consensus engine for all network data, including execution layer transactions and account balances.
The Merge represents the official switch to using the Beacon Chain as the engine of block production.
Mining will no longer be the means of producing valid blocks.
Instead, the proof-of-stake validators assume this role and will be responsible for processing the validity of all transactions and proposing blocks.
No history is lost. As Mainnet gets merged with the Beacon Chain, it will also merge the entire transactional history of Ethereum.
You don't need to do anything. Your funds are safe.
What do I need to do to get ready?
You do not need to do anything to protect your funds entering The Merge.
As a user or holder of ETH or any other digital asset on Ethereum, as well as non-node-operating stakers,
you do not need to do anything with your funds or wallet before The Merge.
Despite swapping out proof-of-work, the entire history of Ethereum since genesis remains intact and unaltered after the transition to proof-of-stake.
Any funds held in your wallet before The Merge will still be accessible after The Merge. No action is required to upgrade on your part.
Take away from scammers after the Merge:
As we approach The Merge of Ethereum Mainnet, you should be on high alert for scams trying to take advantage of users during this transition.
Do not send your ETH anywhere in an attempt to "upgrade to ETH2."
There is no "ETH2" token, and there is nothing more you need to do for your funds to remain safe.
Ethereum Merge Date
The Ethereum merge date and transition to proof-of-stake is expected to take place on September 19, 2022.
We have some Testnet examination before Merge.
I list them for you below:
- Goerli/Prater client releases 27th or 28th of July.
- Announce 28th/29th.
- Prater Bellatrix on the 8th of August
- Goerli Merge on the 11th.
- ACD 18th August plan mainnet Merge:
- Bellatrix early september;
Merge two weeks later (week of Sept 19th).
and additionally i attached a Technical Analysis for ETH/USDT
After we surpass 1700 Resistance , we reach 1800 now and we pass it too.
now we are on road to strong 2000 resistance and after that 2400.
According too incredible happenings for ETH 2.0 and the U.S. inflation record
a peak i think we will see this levels in coming days.
Additionally we see 3 strong candle patterns on 1800 breaked Resistance
1 - Marobuzu Candle
2 - Morning star pattern
3 - Bullish Engulfing
Like i show on the chart.
These patterns are showing a strong demand in this zone.
Hope you enjoy this article.
please share me your opinions in comments
and i want for all of you a lot of profits.
thanks for reading.
Shooting Star Candlestick
What is the Shooting Star Pattern?
1. A shooting star is a type of candlestick pattern which forms when the price of the security opens, rises significantly, but then closes near the open price.
2. The distance between the highest price of the day and the opening price should be more than twice as large as the shooting star’s body.
What does Shooting Star tells you?
1. Shooting stars signals a potential downside reversal and is most effective when it forms after 2-3 consecutive rising candles having higher highs.
2. A shooting star opens and rises strongly during the trading session, showing the same buying pressure that is seen over the last trading sessions.
3. At the end of the trading session, the sellers push the price down near the open.
4. This shows that the buyers have lost control by the end of the day, and the sellers have taken over.
5. The long upper shadow indicates that the buyers are losing position as the price drops back to the open.
6. The candle after the shooting star gaps down and then moves lower on heavy volume.
7. This candle helps in confirming the price reversal and indicates that the price will continue to fall.
Trading Scenario
1. Trade Entry: Before you enter a shooting star trade, you should confirm that the prior trend is an active bullish trend.
2. Stop Loss: You should always try to use a stop-loss order when trading the shooting star candle pattern.
3. Taking Profits: The price target for this trade should be equal to the size of the shooting star pattern.
Limitations of Shooting Star
1. One should not only rely on a candle pattern like in a shooting star for making trading decisions.
2. This is why confirmation is required, one can confirm by the next candle or other technical analysis indicators.
3. One should also use stop losses when using candlesticks to control the losses.
4. A candlestick pattern is more significant when it occurs near an important level signaled by other forms of technical analysis.
THE MOST IMPORTANT FOREX FUNDAMENTALS 📰
Hey traders,
Even though I am a pure technician and I rely only on technical analysis when I trade, we can not deny the fact that fundamentals are the main driver of the financial markets.
In this post, we will discuss the most important fundamentals that affect forex market.
📍Unemployment rate.
Unemployment rate reflects the percentage of people without a job in a selected country or region.
Rising unemployment rate usually signifies an unhealthy state of the economy and negatively affects the currency strength.
📍Housing prices.
Housing prices reflect people's demand for housing. Rising rate reflects a healthy state of the economy, strengthening purchasing power of the individuals and their confidence in the future.
Growing demand for housing is considered to be one of the most important drivers in the economy.
📍Inflation.
Inflation reflects the purchasing power of a currency.
It is usually measured by evaluation of the price of the selected basket of goods or services over some period.
High inflation is usually the primary indicator of the weakness of the currency and the unhealthy state of the economy.
📍Monetary policy.
Monetary policy is the actions of central banks related to money supply in the economy.
There are two main levers: interests rates and bank reserve requirements.
Higher interest rates suppress the economy, making the currency stronger. Lower interests rates increase the money supply, making the economy grow but devaluing the national currency.
📍Political discourse.
Political discourse is the social, economical and geopolitical policies of the national government.
Political ideology determines the set of priorities for the ruling party that directly impacts the state of the economy.
📍Payrolls and earnings.
Payroll reports reflect the dynamic of the creation of new jobs by the economy, while average earnings show the increase or decrease of the earnings of the individuals.
Growing earnings and payrolls positively affect the value of a national currency and signify the expansion of the economy.
Pay closes attention to these fundamentals and monitor how the market reacts to that data.
What fundamentals do you consider to be the most important?
❤️If you have any questions, please, ask me in the comment section.
Please, support my work with like, thank you!❤️
Quick coin analysis before buyingBINANCE:BTCUSDT
How to evaluate the tokenomics of the project?
Below you will find the main questions that you need to ask yourself when analyzing the tokenomics of the project - this scheme will not predict the price of the token with an accuracy of a cent, but it will help to predict the dynamics and assess the prospects.
1. Supply
Main question: based on supply alone, will the token be able to maintain/increase the price, or will it be eroded by inflation?
General supply
— How many tokens exist today?
How many will there be in the future? Is there a supply limit?
Emission rates
Is the emission rate fixed or changing?
— If it changes, what factors determine it?
Allocations/vesting
— How was supply originally distributed among investors, community, team? Are there any groups that own a significant share of the supply and could exert significant selling pressure after vesting ends?
— What is the vesting schedule for the largest holders?
2. Demand
Main question: why would anyone hold this token?
ROI
- Without taking into account the price increase, what income does a simple hold of a token bring (for example, due to staking)?
— Is it possible to get additional profit through farming?
— Are protocol revenues distributed among token holders?
— Is there a rebase* as inflation progresses?
* A rebase is similar to a stock split, when holding or staking a token allows the owner to increase its amount, thereby compensating for the impact of inflation (for example, a mechanism when the share of ownership of a supply remains unchanged).
Community
How active are Discord and Twitter of the project?
— Is there an ecosystem fund? Grants? Hackathons?
— How actively is the protocol working on community involvement?
— Are there one-time or ongoing initiatives to create additional demand for the token?
— Is there a token blocking program? If yes, how many awards are allocated to it and what are the requirements for receiving these awards?
— What share of the total number of tokens in circulation is locked?
— What additional selling pressure will arise after the expiration of locks?
Are there non-monetary benefits from staking and locking tokens (e.g. increased voting power)?
It is worth noting that even taking into account all these factors does not in itself guarantee the growth of the token or the success of the project, but is only one of the necessary aspects, in addition to the market phase, hype around a particular direction, and others.
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Volume Profile and why you need it.Volume profile is an underused and quintessential part of trading, it tells you build up of orders, it tells you fair price, and it tells you where the majority of the liquidity is.
You can see in this chart, I have taken it apart piece by piece to show you the basic mechanics and why price moves the way it does, now be honest, how many of you rushed into selling GU last minute because the price was collapsing? Well the funny thing is despite not being alone in doing so in the retail trading world, big banks and instituitions were already two steps ahead as expected, check the Volume profile, notice how it declined on a massively falling currency, what this is telling you is that the amount of exchanges is very low, as the shorters pushed price down they began to close positions, also what would have happened is the amount of retail money and money that isnt associated to high end firms would have started to see negative positions so what do they do? they have to close these sells with buys! so not only are the big banks taking profit, they are also using you as rocket fuel! as the masses of small money becomes negative/trapped/stoplosses, price reacts in an equal and opposite reaction, price rallies. So where is price heading too? it is heading back to an area where it can happily trade, and this is shown by larger bars on the VP, price wants to be happy, to be happy it needs to transact alot! So two takeaways... One, dont rush into falling or rising currencies! as they are heading into areas of low volume and will use mean reversion to run you over... Two, Utilise the fact price has low VP build up to your advantage! use price action and catch moves like that GU rally back to an area of more transactions! and a final little trick, use the VP to tell you if your orderblock is real or a figment of your imagination! feel free to drop some questions below, I may have to make more posts on VP for it to make sense. Maybe I will also make some posts on examples of trading using it, and what to do and not to do. Thinking about it, there is more posts to do, I need to show how to trade mean reversion and 'mountain to mountain' tactics. Hope you find this post interesting, as I take a journey of taking back the layers of many traditional strategies, indicators and the deeper world of maths, I am doing this to try help new traders actually get somewhere! So please give me a like and a follow, I want to expand my reach here on tradingview :) All the best ZenFlo.
Candles continued.So here I am following on from the previous post, we have moved to the 4H chart, and I have taken a deeper delve into how to filter the candles out to find optimal ones, and look here, all the Bullish engulfing under the moving average... very poor performance, but the Bearish engulfing that is rejecting the moving average, remember previous post we talked about what price is attempting on pullbacks to the moving average? also has an orderblock rejecting as the moving average is down, remember what that tells us?? I will post the links to them under this post so you can go back over it. The Bollinger band squeezed just before aswell before the expansion. What to take away... Patience and optimisation! make the rules to your system click! do not react to every candle, find where price has action!
ETH 2 phases and why we need it?Hi friends
today i want to explain ETH 2.0 phases in short.
like you see in picture above it explain our need to ETH 2.0 so
i will summarize phases below:
Phase 0 : Beacon Chain
Phase 0 is the name given to the launch of the Beacon Chain.
The Beacon Chain will manage the Proof of Stake protocol for itself and all of the shard chains.
Once Phase 0 is complete, there will be two active Ethereum chains.
For the sake of clarity let’s call them the Eth1 chain (current, PoW main chain) and the Eth2 chain (new Beacon Chain)
During this phase, users will be able to send their ETH from the Eth1 chain to the Eth2 chain and become validators.
(They will NOT be able to migrate this ETH back to Eth1)
Phase 1 : Shard Chains
Shard chains are the key to future scalability as they allow parallel transaction throughput
and there will be 64 of them deployed in Phase 1 (with the possibility of adding more over time as hardware scales).
Shard validators, who are randomly selected by the Beacon Chain for each shard at each slot,
merely come to agreement on each block’s content.
Phase 2 : State Execution
Phase 2 is where the functionality of the entire system will start to come together.
Shard chains transition from simple data containers to a structured chain state and Smart Contracts will be reintroduced.
Phase 2 also introduces the concept of 'Execution Environments (EEs).
Every shard has access to all execution environments and has the ability
to make transactions within them as well as run and interact with smart contracts
hope this article is useful for you.
thank you all for your supports.
5 PHASES OF TRADE ANALYSISHello everyone!
Trading is hard mental and emotional work.
The market is a dangerous place that will show all your disadvantages.
Without strategy and control, it's not even worth trying to beat the market.
Today I want to talk about the five phases that a good trader must go through when trading on the market.
PHASE 1
The first step for a good deal is to choose the right instrument.
To do this, you must be able to understand stocks, currencies, indices.
You must understand the specifics of each tool, be able to understand the data of reports and news, and use the information correctly.
The big mistake of beginners is trading all instruments indiscriminately and without preparation.
You should understand that, although there are similarities between the markets, they still have differences.
YOU should understand that the bankruptcy of a small company will not affect the market, but Google's problems can.
An increase in the interest rate in a third world country does not have much impact on the world, unlike the actions of the US central bank.
Study the specifics of the market and follow the news, then make a choice what you will trade.
PHASE 2
After you have selected a suitable instrument for trading, you must open a position.
To do this, you must have a strategy prepared in advance, in which the entry conditions will be prescribed.
This topic is a separate article because the issue of opening a deal is very important.
You will be able to know where to open a position and where not to do it only when you try existing entry strategies, analyze the results and do something of your own.
After finding a suitable entry strategy and waiting for the right conditions, open a deal.
PHASE 3
After opening a deal, all you have to do is follow the market and the news.
But don't overdo it.
Beginners often sit in front of the screen monitor for a long time and monitor every price movement, which eventually leads to fatigue, and this leads to mistakes.
Of course, if you are engaged in scalping, for example, you will follow the movement, your trading style also decides how much you will be behind the monitor screen, but do not overdo it.
Open a position, watch how the price reaches important levels, but do not overdo it.
PHASE 4
Then you have to close the position.
The strategy of closing a deal is also important and there are many styles of closing deals.
You have to choose your strategy and close the position according to it with profit or loss.
The main thing is not to deviate from the rule and not to forget about the stop loss.
PHASE 5
Beginners, as a rule, after closing a deal, go further for a new position and this is a big mistake.
The resulting profit is maddening, and newcomers think they have understood the market.
Losses spoil the mood and you don't want to remember them, so beginners quickly run on.
Not performing an analysis of the completed transaction is the biggest loss.
You lose the most at this stage, because by analyzing the transaction, you will avoid losses in the future and get even more profit, without doing the analysis you will continue to trade poorly.
Therefore, at the end of the day or week, allocate time to analyze all transactions, draw conclusions and make no more mistakes.
conclusion
As you can see, it is not enough just to open a position and close it, you need to prepare, and then analyze everything.
These steps will help you reach a new level as a trader, if you haven't started trading like this yet.
Good luck!
DECISION MAKING: SUPPLY AND DEMAND ZONEMaking day-to-day investment decisions is challenging enough without the added stress of trading. Whether you are a beginner or an experienced trader, the world of finance can be challenging. It’s not always easy to know whether your trading ideas are worth pursuing or not. Even experienced traders struggle to make the right investment decisions on a regular basis. This is where decision-making and trading strategy comes in. Understanding how to make the technical analysis and right trading decisions is essential in any trading career. The share market uses the technical analysis to test or forecast the price down trend or uptrend. Knowing how to determine the supply and demand zone is the critical factor in the technical analysis.
The insights of supply and demand trading
Supply and demand zones are a popular analysis technique used in day trading and considered as key indicators in the supply and demand trading. These zones are both supply zone or distribution zone and the demand zone or accumulation zone. They present the liquidity at a specific price.
Key takeaways
Markets are driven by supply and demand zones.
Investors can use supply and demand zones to make purchases or sales decisions.
The price drop begins and starts at the distribution zone.
A bearish stock displays greater supply than demand and exhibits distribution.
Buying pressure accounts for distribution, whereas accumulation reflects selling-side
pressure.
When a stock's price stops falling and starts moving sideways for a period of time, this
signals that there is accumulation and that the stock may rise.
Three NOTES for supply and demand trading
When looking for stocks to buy, the first thing to determine is whether you're in a supply or demand zone. In a supply zone, the stock's price is above the bid price, while in a demand zone, it is below. The bid price is the amount a trader is willing to pay for a stock.
Once you find the most active market supply and demand zones, you can identify the next thing you must do. You can either buy or sell depending on whether the trend continues or reverses in that zone.
Understanding rally and drop patterns is the third aspect. When you see a pattern indicating a rally, you should buy high and sell low. When you see a pattern indicating a price drop, you should sell short.
Strategies with the Supply and demand trading
To make a bright decision and set your smart strategy in trading, a trader should definitely know what current socio-economic and political conditions are. This is paramount to being a successful trader. They should look at any economic or political disruption that could affect the trading environment, or question whether there are a lot of volatility in the markets or not. If the answer is yes, a supply and demand trading strategy might be used to make a good trading strategy with the breakout or range trading involved.
When the market is stable and not extraordinary, a trading range may be used to describe it. The breakout is a supply and demand trading strategy when market conditions are expected to change.
When markets open or close, day traders may have to watch for breakout formation of rectangular ranges when liquidity or volatility are higher.
A limit order can be used to buy or sell stock at a set price. You can use price action entry to enter a position at a certain price or zone. Candlesticks are used to enter positions with price action. Using candlesticks as a strategy is more effective.
Bottom Line
There are a lot of factors that can affect your trading success and trading strategy. You need to make sure that you’re looking at the right factors when examining your data. You also need to make sure that you’re staying away from automated trading strategies. These are the two factors that are going to make the biggest impact on your trading success. You need to know where the supply is at and the demand. You should understand the factors that are affecting the market and the future support and resistance levels. This is the only way to make the correct trading decisions.
Understanding the Story of a Currency Pair
When trading price action, it's crucial that you understand the story of the currency pair you are trading.For what current price is doing is only valuable in the overall context of what a currency pair has been doing.Just like reading a book or watching a movie, watching it from the half-way point won't allow you to understand what's happening; for current dialogue only has meaning with a context.So here's 2 things you can do to know the story of a currency pair:
1.) Analyze new price everyday to build the story. Ask yourself, " is current price confirming your perspective of the direction of a currency pair?Or is current price showing signs of a changing story? 2.) Use multiple time frames.The higher and lower time frame's stories should compliment eachother.Ask yourself " is current price on the lower time frames confirming the story on the higher time frames?"
Moreover, understanding the story of a currency pair gives the trader an understanding of the tendancies of that pair.Each pair has very different characteristics.Just like how a music composer has tendancies when composing music.Each pair has identifiable, or rather, "trademark" tendancies.For example, the Eur/Usd pair tends to be very accurate in terms of price levels.So if there's a well repected trendline and you expect price to bounce off of it, it will do so with accuracy right down to the last decimal.Moreover the Gbp/Usd tends to have many pullbacks before an extended move in a direction takes off.Having this knowledge allows for great position building as well as the understanding that there are further opportunities to enter a trade even if you missed the initial entry.
In this way, understanding the story of a currency pair and keeping this story up to date, gives a trader a general sense of "unison" with that pair.Allowing them to notice slight changes in the over-arching trend and therefore have the ability to be one step ahead of the market at all times.
That's it! I hope this helps!
Have a great day guys!
Ken
Non-Fungible Token (NFT)Hi traders – I hope you all are doing well despite bear 🐻
It’s been a while since my last post but as NFT topic is largely uncovered in TradingView I thought that I will put something together. I have been learning about this area in past months
and here are my findings. I divided my writing into three chapters:
1) Research
2) Gaming and NFTs
3) CryptoWalkers
This way it’s more structured and easier to read.
1. Research
For last 6 months I have been researching NFT space and some of my conclusions are following:
NFTs can have basically unlimited use cases from music to land ownership
NFTs are here to stay and will become an asset class with very high market capitalization
Many well-known companies have shown their interest for NFTs
Can expect a lot of innovation in this sector
There are opportunities for investors/traders
Coinbase CEO Brian Armstrong said to Bloomberg: „The market for non-fungible tokens could rival or even be larger than the company’s cryptocurrency business.“ (10.11.2021)
I don’t know if that’s the case but there are definitely big potential in NFTs. According to CoinMarketCap, total Crypto market capitalization is $1.27 Trillion and NFTs total
market capitalization is $11,4 Billion (30.05.2022). This makes NFT market capitalization 0.9% of total Crypto industry. These numbers show that we are still very early.
During my research I have:
Deep dived into discord servers (every NFT project has their own server). I have been active there – asking questions and made suggestions. Fun thing about that is you generally
don’t know if you are speaking with 15 year old youngster or 60 year old elder.
Minted NFTs
Bought and sold NFTs on secondary markets
Invested into failed projects
To me investing into NFT projects is very similar to investing into startups – you invest mainly into founders & team. Idea is also important – as well ability
to make changes when something is not working. Also keep in mind that many startups fail, I guess that this number will be even higher in NFTs. Before bear market
there was extreme hype around NFT sector and you could basically draw a cow in Microsoft paint and sell it for 3 ETH if you were a good marketer. This is not the case
anymore. Currently sometimes even good projects are struggling to sell out. Generally I believe that bear market is good for the NFT ecosystem. It will clear up some air
and weak projects will fail. As famous investor Warren Buffett said: „Only when the tide goes out do you find out who’s been swimming naked.“ Strong projects will make it
because they keep building and this gives better foundation to new market cycle. This will also educate investors because at some point when investor had a whitelist spot
for minting event, it meant basically guaranteed profit. Markets can’t run like this forever. I mean you can still make money trading NFTs but it’s much harder with these market
conditions and more work needs to be done.
Here is little overview about different NFT categories (although sometimes it is difficult to classify them):
For example sometimes NFT belongs into multiple categories, like PFP (Profile Picture) project with P2E (Play-to-Earn) mechanics. I believe in time these categories will be
more precise as whole NFT market evolves. One of the most interesting area is blockchain gaming. This topic is nicely explained in Gemini's article and I copied it here (full link below).
2. Gaming and NFTs
While the global gaming industry continues to grow across all markets, it remains structured in a way that primarily benefits game developers and perpetuates a one-directional flow
of value where players spend money to unlock access to in-game assets and gameplay configurations. In contrast, blockchain-built games and decentralized applications (dApps) enable
players to capture the utility and value of in-game purchases and asset acquisitions more effectively.
Blockchain technology in gaming is driven by non-fungible tokens (NFTs), digital assets that represent in-game content. These tokens are unique, rare, and indivisible, while the
blockchain networks that underpin NFTs facilitate player ownership, provable scarcity, interoperability, and immutability. Together, these advantages have the potential to drive
mainstream adoption and a far more equitable value model.
Although the adoption of NFTs in the gaming world comes with benefits, it also presents significant obstacles to overcome. Most notably, NFTs need to be made more appealing and intuitive
to mainstream consumers who might not be technically oriented. And because NFTs possess intrinsic value, there's a risk that some will be used predominantly as speculative assets.
This potentiality could motivate players to purchase in-game assets with the hope of selling them for future profit instead of using the assets within the gaming ecosystem as intended.
Despite these challenges, the potential for profit within the gaming industry will motivate more non-blockchain-focused brands to experiment with NFTs, likely by forming partnerships with
third-party blockchain projects that have the technical expertise needed to bring their vision to life. Simultaneously, the broader success of gaming dApps will likely play a role in further
catalyzing NFT infrastructure improvements and drive the development of innovative solutions that unlock mainstream adoption.
Read full article here: www.gemini.com
3. CryptoWalkers
Cryptowalkers is unique collection of fully rigged 3D walking characters aimed to live in the Metaverse. All characters come with full bodies (and custom 3D backgrounds) to be used by
it’s owners in various Metaverse environments.
One of the main goals of this project is to develop P2E shooter game and it should be launching at February 2023 (dates can change, especially in Crypto but this is rough estimate).
Development is well underway and team has released some video clips from the game - this is one of the most advanced blockchain based P2E game I have seen so far. I think that
NFTs, P2E and Metaverse will become big things in Crypto. Despite being still early there are signs that this one will become one of the top players in the near future. I have
been part of their community since their minting event (December 2021) and feel very bullish on this project. I'm mostly impressed how professionally this one is managed.
Capable team is key to success and here we have one of those teams. They started with zero (0!) marketing budget but this little thing did not disturbed them. They managed to
build a strong community within short time-frame. When team is able to do things with limited resources then you could imagine what will start to happen when there is some money
backing their vision. In February Outlier Ventures joined as an investor and strategic partner. After that there are basically no closed doors for them. As I mentioned before,
it is wise to invest into strong teams. This is especially true in bear market.
Secondly, I believe that these CryptoWalkers have some X-factor that I can't describe. It's the same factor that separates great songs from good ones. To be honest, when I first
saw them then they seemed little weird to me 😀 Now I really like those Walkers... X-factor is working.
Here is chart of CryptoWalkers price movement (nftgo.io)
Current floor price is 0.18 ETH. Highest floor price was 0.5 ETH (02.02.2022). Current entry is more than 50% below that. Due to market conditions there is possibility to enter cheaply.
I think that this could be very good holding if trader wants some exposure in NFT sector.
CryptoWalkers website is: cryptowalkers.io
As always, DYOR!
Thank you and have a nice day. Cheers.