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What is the Power in Buy and Sell WallsHello, dear @TradingView community! Welcome to another insightful educational topic focused on Buy and Sell Walls in the world of cryptocurrencies! Understanding buy and sell walls is critical for any trader or investor in the cryptocurrency market. It provides access to the order book and valuable insights into the market sentiment of specific cryptocurrencies. This understanding can help forecast future price movements and develop more effective trading strategies. In this article, we will delve into the concept of walls in crypto, explore how to identify and interpret buy and sell walls, and discuss their significance in the market. What is a Wall in Crypto? Understanding Buy Walls Understanding Sell Walls How to Identify Buy and Sell Walls How to Interpret Buy and Sell Walls What is a Wall in Crypto? A wall refers to a large limit order placed on a cryptocurrency trading platform, often depicted as a huge block on the order book. Market makers, institutional investors, as well as individual traders, utilize these large limit orders to buy or sell substantial quantities of a specific cryptocurrency at a predetermined price. Walls tend to have a significant market impact since they can influence the supply and demand levels of a specific cryptocurrency. These large limit orders, representing a considerable quantity of a cryptocurrency bought or sold at a specific price, have the potential to cause significant price fluctuations. Understanding Buy Walls Buy walls are substantial limit orders placed to purchase a specific amount of a cryptocurrency at a particular price or higher. They can be formed by large market makers, institutional investors, or individual traders seeking to buy a significant amount of a cryptocurrency at a specific price or lower. Buy walls can serve to profit from price movements or accumulate a large quantity of a cryptocurrency at a lower price. A buy wall indicates strong demand for a specific cryptocurrency at a certain price or higher, which can be seen as a positive sign for the market. It suggests that buyers are willing to pay the specified price or more, potentially leading to a price increase. Additionally, a buy wall may indicate that a large market maker or institutional investor has faith in the future price of a coin or a token. By investing a substantial sum, they express confidence that the cryptocurrency's price will rise in the future. Traders can utilize the presence of a buy wall to gauge market sentiment and identify potential buying opportunities. Buy walls can also serve as support levels and act as stop-loss points. Understanding Sell Walls Sell walls, on the other hand, consist of large limit orders placed to sell a specific amount of a cryptocurrency at a particular price or lower. Similar to buy walls, sell walls can be formed by market makers, institutional investors, or individual traders looking to sell a substantial amount of a cryptocurrency at a specific price or higher. These limit orders are utilized to profit from price movements or liquidate a large quantity of a cryptocurrency at a higher price. A sell wall indicates a strong supply of a specific cryptocurrency at a particular price or lower, which could suggest overvaluation. It signifies that sellers are willing to sell at the specified price or lower, potentially leading to a price decrease. Furthermore, a sell wall can indicate that a large market maker or institutional investor holds a bearish outlook on the future price of a cryptocurrency. By selling a significant sum, they imply their belief that the cryptocurrency's price will fall in the future. Traders can leverage the presence of a sell wall to assess market sentiment and identify potential selling opportunities. Sell walls can also act as resistance levels for a cryptocurrency and serve as target price points for profit-taking. How to Identify Buy and Sell Walls Buy and sell walls can typically be found in the depth chart of order book on a cryptocurrency trading platform. They are often represented as conspicuous, large blocks, easily identifiable by traders. While some trading platforms provide graphical representations of the order book, this feature is not available on all platforms. When identifying buy and sell walls, it's crucial to consider the context surrounding them, including current market conditions and the specific cryptocurrency being traded. Market conditions can change rapidly, so staying updated and understanding the current market environment is essential for making informed decisions. It's worth noting that larger buy or sell walls tend to have a greater impact on the market compared to smaller ones. A large wall could indicate the involvement of a significant market maker or institutional investor, which can potentially influence the price of a specific cryptocurrency more significantly. How to Interpret Buy and Sell Walls By examining both buy and sell walls, traders can gain insights into the supply and demand levels for a specific cryptocurrency. A large buy wall suggests strong demand, while a large sell wall indicates substantial supply. When used together, these walls provide a comprehensive view of market sentiment and the supply-demand dynamics of a cryptocurrency. Combining buy and sell walls can also help identify potential buying or selling opportunities. For example, if there is a significant sell wall and a large buy wall at the same price level, it may indicate a state of equilibrium in the market, presenting an opportunity for traders to enter or exit positions. The presence of a buy wall typically indicates a bullish sentiment, while a sell wall suggests a bearish sentiment. A market with more buy walls than sell walls tends to exhibit bullish market sentiment, while a market with more sell walls than buy walls suggests a bearish sentiment. It's important to note that the absence of buy or sell walls may indicate a lack of market activity or market uncertainty. It can also imply a period of consolidation or a lack of liquidity, which can impact trading conditions and market volatility. Buy and sell walls can serve as potential entry and exit points for trades as well. A buy wall at a specific price can be seen as an opportunity to enter a long position, while a sell wall at a particular price may indicate a suitable exit point for a short position. Conclusion Buy and sell walls represent significant limit orders placed on cryptocurrency trading platforms, offering insights into the supply and demand levels for a specific cryptocurrency. They are used by market makers, institutional investors, and individual traders to profit from price movements or accumulate/liquidate substantial amounts of a cryptocurrency. Understanding buy and sell walls is instrumental in making informed buying and selling decisions, as they display supply and demand levels and provide insights into market sentiment, which can serve as a reliable predictor of market trends. Analysing the impact of buy and sell walls on the market can help traders develop effective trading strategies, identify potential opportunities, determine entry and exit points, and assess market sentiment accurately. By mastering the concept of buy and sell walls, traders can enhance their ability to navigate the cryptocurrency market with greater precision and confidence. We put a lot of effort into researching and writing this piece, and we would love to hear your thoughts and feedback. Have you found the information in the article helpful and informative? Did it provide you with valuable insights into understanding market sentiment and trading strategies? Is there anything you would like to expand upon or clarify further? Your feedback is greatly appreciated and will help us improve future articles. Thank you in advance for taking the time to read and share your thoughts. Happy trading! @Vestinda
Education
by Vestinda
LIDO LDOUSDT Price Analysis (1D)Hey there, TradingView community! We're excited to share our analysis of LDOUSDT's price with you today. This asset has been gaining significant traction in the crypto world, boasting one of the highest Total Value Locked figures. Taking a technical analysis approach, we've identified potential upcoming movements and important support zones to keep an eye on in the next few weeks. After carefully analyzing previous support zones and Fibonacci levels, it appears that the price might break below the $2.00 support level, forming a Head & Shoulders pattern. If this happens, we could see price targets around $1.19 and $1.00. Of course, it's essential to trade smartly with proper risk management strategies in place. And don't forget to consider potential targets in between, like around $1.50. Happy trading, and good luck out there!
by Vestinda
Practical Insights into the Risk ManagementHey there, amazing @TradingView community! It's @Vestinda, and we're on a mission to deliver content that truly makes a difference. 👉 To become a successful crypto trader, it's essential to have a solid understanding of trade and risk management concepts, such as stop losses, position sizing, and scaling. In this article, we'll explore these key concepts in-depth to help you minimize your risks and maximize your gains in the cryptocurrency market. Four Risk Management Concepts Every Crypto Trader Should Understand To effectively manage the risk associated with trading, it is essential to first develop a comprehensive trade management and risk management strategy. Before committing your capital to any position, it's critical to have a clear plan in place to minimize potential losses and optimize your overall trading performance. Successful market speculation requires effective risk management to preserve capital, which is the primary objective. By minimizing losses and maximizing gains through a comprehensive trade and risk management strategy, traders can achieve long-term success in the market. One of the key strategies employed by the most successful traders is to minimize their losses while allowing their profitable trades to run. This approach is essential for avoiding disastrous scenarios, such as allowing profitable trades to turn into losers or allowing a single bad trade to wipe out an entire account. By focusing on risk management and trade management, traders can increase their chances of success and protect their capital over the long term. It's true that implementing the "cut losses quickly and let profitable trades ride" strategy can be challenging, especially for discretionary traders who need to constantly evaluate changes in fundamentals and market sentiment against price movements. However, there are trade and risk management ("TRM") tools and methods available that can help simplify this process. While these tools and methods may seem complex at first, they are quite accessible and easy to learn. With the right TRM strategies in place, traders can effectively manage risk and optimize their performance in any market condition. Before diving into trading, it's crucial to understand four key concepts in trade and risk management: Stop losses: Stop losses are predetermined exit points designed to limit potential losses on a trade. By setting a stop loss, traders can automatically close a position if the market moves against them beyond a certain point, minimizing their losses. Traders may use price action signals, technical indicator signals, fundamental analysis, or a combination of all three to determine the appropriate level for a stop-loss order. This helps to limit potential losses on trade and is a crucial component of effective risk management. Position sizing: Position sizing refers to the amount of capital allocated to a specific trade. By properly sizing positions based on risk tolerance and market conditions, traders can optimize their overall risk management strategy and minimize the impact of potential losses. Position sizing refers to the process of determining the quantity of cryptocurrency to long or short based on the maximum amount of value a trader is willing to lose if the trade fails, also known as "max risk." For novice traders, it is recommended that the maximum risk should not exceed 1-2% of their portfolio for short-term transactions and 5% for longer-term positions. For example, if a trader has a cryptocurrency account with $ 1,000 and wishes to purchase a token with a market price of $ 10.0 per token, they would need to determine the appropriate position size to maintain their desired level of risk. If their analysis indicates that they should place a stop loss at $ 5.0 per token to limit their maximum risk to 2% of their account, or $ 20.0, then the appropriate position size would be 4 units (40$ position size). This way, if the token's value drops by $ 5.0, the resulting loss of $ 20.0 would equal 2% of the trader's account. Scaling: Scaling involves adjusting position sizes based on the performance of a trade or the overall market conditions. By scaling into or out of positions based on market conditions, traders can adjust their risk exposure and optimize their potential for gains while minimizing potential losses. Scaling refers to the practice of dividing entries and exits into two or more orders around a trader's intended entry/exit area to reduce the likelihood of setting an entry too low or too high. This is particularly important because it is nearly impossible to predict the exact price or time at which the market's direction or volatility levels will change. For example, if a trader intends to buy a token for $ 10.0 but their analysis indicates that it may drop as low as $ 8.0 before sentiment entirely flips bullish, they should consider dividing their entry/exit orders into multiple price levels. This way, they can enter the trade with a partial position if the token's price does not drop below $10.0, but if it drops to $ 8.0, they can scale into a lower average price of $ 8.75. By using scaling and position sizing in conjunction with a maximum stop loss level, traders can effectively manage their risk and reduce the likelihood of incurring significant losses. While these concepts are relatively simple, understanding and applying them correctly can help traders avoid significant risks in the cryptocurrency market. Leverage: Trading with leverage involves taking positions that exceed the account's total capital, which can be done through crypto exchanges (CEXs) offering margin trading or some DeFi protocols providing advanced borrowing mechanisms. For instance, assume you have $ 100 in your account, and you want to purchase 1 unit of XYZ token worth $ 100, creating an open position valued at $ 100. Margin trading offered by a CEX may only require a 10% margin, meaning you only need to invest $ 10 instead of the entire $ 100. You can then utilize the remaining $ 90 to open additional positions, which can be tempting for many traders. With a 10% margin requirement and a $ 100 account, you can open a position size of 10 XYZ tokens, having a notional value of $ 1000 ($ 100 x 10 units), with the CEX holding the $ 100 in your account as a margin for the trades. This would make you leveraged 10x, which is considered an extremely high amount of leverage. If the token increases in value by 10% in a short period, the position value would grow from $ 1000 to $ 1100, which means you could double your account value from $ 100 to $ 200 (i.e., $ 100 profit + $ 100 margin). Alternatively, if the token rises by 20% to $ 1200, you would triple your account to $ 300 in value. Although the potential for high profits may sound exciting, it is crucial to remember the risks associated with trading with leverage, and it is advisable to exercise caution and not get carried away by the prospect of quick and easy gains. Many traders are lured by the potential profits of leveraged trading, but it's important to remember that leverage can be just as dangerous as it is rewarding. If a trader opens a position with 10x leverage and the position loses just 5%, that would be a loss of $ 50, which is 50% of their $ 100 account. Additionally, if the position were to lose 10%, resulting in a $ 100 loss, the trader would receive a margin call and would need to deposit more money to keep their trades open. If they are unable to do so, the CEX will close all positions, also known as being "liquidated". The CEX will use the margin that the trader had provided to cover the $ 100 loss, which means that the trader's account balance would be reduced to $ 0. It's essential to be aware of the risks of leveraged trading, as you could potentially lose everything you've invested. It's important to remember that leverage in crypto trading is a double-edged sword that can either grow your account or quickly deplete it. While it's possible to make significant profits with leverage, it's equally possible to suffer substantial losses. As a new trader, it's important to acknowledge that trading with leverage requires expertise and a sound risk management strategy, which can be challenging to implement successfully. Therefore, it's wise to approach leverage with caution and focus on developing your skills and knowledge before considering this tool. Here are some recommendations that can help you navigate the exciting but risky world of crypto trading: First, it's important to be conservative with your risk-taking and to only invest in your very best trade ideas. Limiting your total exposure to the crypto sector to a small percentage of your total liquid capital, starting at 1%, is a good way to minimize your risk. You should also limit your exposure to a specific crypto asset to a small percentage of your total crypto portfolio, with a 1% to 2% max risk on short-term trades and a max of 5% risk on longer-term positions. Using a stop loss with every position is also crucial to limit potential losses. Remember, perfect timing is near impossible, so consider scaling into trading positions or "dollar cost averaging" into longer-term investments. Take profits along the way if a trade goes your way. And most importantly, avoid using leverage, which can be a double-edged sword and lead to substantial losses. Lastly, only invest your capital in your very best ideas, which should be low-risk/high-reward setups on high-probability ideas. Don't force trades when there are no compelling opportunities, and remember that "no position" is a perfectly fine position when you don't see any good opportunities. Calling all traders! Are you ready to take your skills to the next level? Join our community of like-minded traders and stay up to date with the latest market trends and insights. Hit that follow button and show your support by giving this article a big thumbs up. Together, we'll navigate the markets with ease and achieve financial success. Don't miss out on this opportunity to grow and learn with us. Let's do this!
INDEX:BTCUSDEducation
by Vestinda
1
OCEAN OCEANUSDT Price Analysis (12h)Greetings, esteemed members of the TradingView community. We are delighted to present to you the 12-hour timeframe analysis for OCEANUSDT (Ocean Protocol) by Vestinda. OCEANUSDT has garnered significant attention from investors and crypto traders alike. Ocean Protocol is a cutting-edge blockchain-based platform that aims to revolutionize data sharing and access in the digital world. Its key purpose is to facilitate the efficient and secure sharing, monetization, and access to data assets, while ensuring data privacy, control, and interoperability. Our analysis reveals the formation of a Triangle Pattern , offering potential opportunities in both directions. However, it is crucial to closely monitor the price action, especially while it remains in close proximity to the apex of the triangle. Furthermore, our examination of the MACD indicator data indicates a bearish crossover, suggesting a higher likelihood of a price breakdown from the Triangle formation. Nevertheless, there are solid support levels at the 61.8% and 50% Fibonacci retracements, making them key areas to keep a keen eye on. We would greatly appreciate your feedback and insights on this analysis. Please feel free to share your thoughts and observations in the comments section below. Your valuable input contributes to the collective knowledge and expertise of our community.
O
by Vestinda
SPACEID IDUSDT Price analysis (4h)Hello dear traders and investors of TradingView community! Having witnessed a remarkable surge in recent weeks, the price of SPACE ID (IDUSDT) embarked on an impressive rally, originating from the accumulation zone established between 0.44 and 0.50 during the initial weeks of April. Surpassing all expectations, the price soared to reach the remarkable threshold of one dollar by the middle of the month. Nevertheless, it subsequently encountered a modest setback, retracing to the 50% Fibonacci retracement level. At present, the price is consolidating, characterized by a period of stability and range-bound trading, potentially paving the way for an anticipated breakout. Market observers and investors are keenly monitoring the situation, anticipating a potential upward surge from the current level of 0.64 towards the projected target of 0.75. What are your thoughts on this post? Give it a Boost 🚀 if you agree and leave a comment to share your perspective!
by Vestinda
9
Bitcoin Rather Stay in Sideways During Second Half of AprilHello dear traders and investors of TradingView community. Are you curious about the current state of Bitcoin and its impact on the altcoin market? Bitcoin is currently encountering difficulty breaking through the 30,000 level, which could result in the price hovering around this level and fluctuating between 28,000 to 29,800. However, between April 19-22, there is a possibility of the price rebounding and reaching 29,600 to 29,800 before facing resistance. If the price does reach around 29,800, it is expected to experience another pullback towards the low-29,000 range. This sideways movement of Bitcoin could have a positive impact on altcoins, as they may have an opportunity to increase in value. We'd love to hear your thoughts on the current Bitcoin price action. Please feel free to leave a comment below with any feedback or questions you may have. Your input is greatly appreciated!
INDEX:BTCUSD
by Vestinda
ARBITRUM ARBUSDT Price Analysis: What the Numbers SayHello traders, this is @Vestinda! Briefly, Arbitrum is a layer-2 scaling technology for Ethereum aimed at boosting transaction speed and efficiency on the Ethereum blockchain. It is built on top of Ethereum and utilizes a technology called Optimistic Rollups to increase the number of transactions per second, reduce gas fees, and improve the overall user experience. The purpose of Arbitrum is to provide a scalable and efficient solution for Ethereum users, developers, and dapps, enabling them to build and interact with smart contracts on the Ethereum network without worrying about the high fees and slow transaction times associated with the main Ethereum chain. The team management behind Arbitrum is Offchain Labs, which was founded in 2018 by Ed Felten, Steven Goldfeder, and Harry Kalodner. Ed Felten is a computer science professor at Princeton University, and he also served as the Deputy Chief Technology Officer of the White House during the Obama administration. Steven Goldfeder is a postdoctoral researcher at Princeton University, and Harry Kalodner is a computer science PhD candidate at the University of Maryland. The key investors behind Arbitrum include Sequoia Capital, Redpoint Ventures, Pantera Capital, and Placeholder Ventures , among others. In May 2021, Offchain Labs raised HKEX:120 million in a Series B funding round led by Lightspeed Venture Partners, with participation from other notable investors such as Ribbit Capital, Alameda Research, and Mark Cuban. Shortly after listing on big CEX the price of ARBUSDT has skyrocketed to a swing high of 1.82, only to retrace to the 61-50% Fibonacci retracement levels. However, fear not, as the cryptocurrency is now making a rebound. To ensure successful short-term trades, keep a lookout for the nearest support level, which is located at the 50% Fib level of 1.48. Stay tuned for further updates!
Short
by Vestinda
Ethereum Breakout Consolidation. What's Next?!Hello @TradingView traders! This is @Vestinda ETHUSD price analysis. Last week in crypto was good in terms of inflows; the overall market cap surpassed 1.2T. Ethereum, meanwhile, had a little breakthrough from $1700 and now appears to have room to increase to $2000 after an Adam & Eve pattern developed. A brief Explanation of the Adam and Eve Pattern The Adam pattern is characterized by a sudden downward price movement, a gradual leveling out, and a little upward price movement. On the graph, this results in a "V" form, with the first drop resembling the letter "A." The Eve pattern forms a rounded bottom with a progressive upward movement that mimics the letter "U." The Adam & Eve pattern, which results from the combination of these two patterns, can indicate a possible shift in the direction of the asset's price trend. Before making a trading choice, traders may use other technical indicators to corroborate the pattern. It's crucial to keep in mind that technical analysis, which includes chart patterns like the Adam & Eve pattern, is just one instrument used in trading and ought to be used in conjunction with other types of analysis, like fundamental analysis and market news. 🚨🚨🚨So here is the fundamentals for Ethereum: The Ethereum Shanghai upgrade is almost complete and scheduled to roll out on April 12, 2023. This update will allow for the withdrawal of staked ETH on the Beacon chain. The core developers approved the deadline with epoch 620, 9536 in an Execution layer meeting, and the lead developer, Tim Beiko, confirmed the launch through his tweet. In addition to enabling withdrawals from the Beacon chain, the Shanghai upgrade includes five other improvements. In December 2020, validators were required to stake 32 ETH on the ETH 2.0 smart contract to activate the Beacon chain. Since then, validators have continued to stake, with the smart contract now holding over 17.6 million ETH, valued at nearly $30 billion. This has raised concerns of a massive sell-off. After the successful merge of the Beacon chain with the Mainnet, the network's roadmap includes Surge, Verge, Purge, and Splurge. Developers have conducted numerous tests to ensure the proper functioning of staked ETH withdrawals since the merge. All tests were deployed on Ethereum testnets to ensure a smooth run, with the last one, Goerli, experiencing a low participation rate. Have you read something about Bulls and Bears? What are your favorite topics? Your feedback will help us create more relevant and useful content! Thank you so much.
Editors' picks
INDEX:ETHUSDLong
by Vestinda
24
Comparing Bitcoin's Price: Then and Now - Is 2023 the New 2019?Hello, TradingView community! I am @Vestinda and I will be providing you with an analysis of Bitcoin's current price. Bitcoin, a digital currency invented in 2009, has experienced a dramatic rise in popularity and usage over the years. Its decentralized nature, lack of central authority, and ability to facilitate fast and cheap transactions across borders have made it an attractive investment option for many. However, Bitcoin's price movements have also been highly volatile, with the cryptocurrency experiencing both significant gains and losses. Comparing Bitcoin's price movements in 2019 and 2023 provides a valuable opportunity to analyze the factors that have influenced its price over time and how the market and industry have evolved. By gaining insights into the similarities and differences between these two years, we can better understand Bitcoin's potential future movements and how to navigate this emerging market. Bitcoin's Price in 2019 From January 2019 to April 2019, Bitcoin experienced significant price movements and events that impacted its price. In January, Bitcoin's price started the year at around HKEX:3 ,500, following a sharp drop in price from its all-time high of HKEX:20 ,000 in December 2017. However, by April, Bitcoin's price had increased by over 100%, reaching a high of HKEX:8 ,000. This price increase was largely attributed to a surge in buying activity from institutional investors and the announcement of several new cryptocurrency-based projects. Overall, Bitcoin's price movements in the first four months of 2019 were largely driven by investor sentiment and regulatory developments, with the cryptocurrency industry facing increasing scrutiny from governments around the world. Bitcoin's Price in 2023 Bitcoin's price movements in 2023 have been marked by significant volatility, with the cryptocurrency experiencing both sharp gains and losses. Before November 2022, Bitcoin's price dropped from its all-time high of $68,900 and reached a low of $15,500. This drop was largely attributed to a combination of factors, including increased regulatory scrutiny and negative news coverage, as well as a broader market downturn. However, Bitcoin's price started to recover from this low point, and by April 2023, had risen to around HKEX:30 ,000. This recovery was largely driven by renewed investor interest and positive news coverage. Comparison of Bitcoin's Price in 2019 and 2023 When we compare the price movements of Bitcoin in 2019 and 2023, we can observe some similarities and differences. The price fluctuations in the 2023 market are quite similar to those in 2019, especially when we use the Fibonacci Retracement tool on Swing Highs and Swing Lows. We've noticed that the 0.5 Fibonacci retracement level held selling pressure in both years. However, in 2019, Bitcoin's price surged from the 0.5 Fibonacci retracement and rapidly approached the 2.618 Retracement level in early April. In contrast, in 2023, Bitcoin's price has been slower to recover from its low point, and it's currently hovering near the 1.618 Fibonacci retracement level. This could be due to the increased maturity of the cryptocurrency market, which has made investors more cautious and less likely to engage in FOMO-driven buying activity. Although there are some similarities in the price movements of Bitcoin in both years, and a potential trading target could be set at HKEX:50 ,000, there are also significant differences that reflect the changing nature of the cryptocurrency market over time. In conclusion, comparing Bitcoin's price movements in different years provides insights into how the market has evolved and how to navigate the industry. Although there are some similarities in the price movements of Bitcoin in 2019 and 2023, there are also significant differences that reflect the changing nature of the cryptocurrency market over time.
INDEX:BTCUSD
by Vestinda
4
Fibonacci Levels and How They Can Be Used in TradingGreetings, @TradingView community! This is @Vestinda, bringing you a helpful article on the topic of Fibonacci Retracements and how to effectively utilize them in your trading strategies. Fibonacci retracement levels are helpful for traders and investors in financial markets. They're horizontal lines on price charts that can show where price may reverse direction. These levels are based on the Fibonacci sequence, which is a series of numbers that occur in math and finance. Use case: The first thing to understand about the Fibonacci tool is that it is most effective when the market is trending. In an upward trending market, traders commonly use the Fibonacci retracement tool to identify potential buying opportunities on retracements to key support levels. Conversely, in a downward trending market, traders may look for opportunities to short sell when the price retraces to a Fibonacci resistance level. Fibonacci retracement levels are regarded as a predictive technical indicator because they attempt to forecast where the price will be in the future. Based on the theory, when trend direction is established, the price tends to partially return or retrace to a previous price level before continuing to move in the direction of the trend. How to Find Fibonacci Retracement Levels: Fibonacci retracement levels can be found by identifying the key Swing High and Swing Low points of an asset's price movement. Once these points are established, you can use the Fibonacci retracement tool, which calculates the potential levels of support and resistance based on the ratios between the key points. To apply the Fibonacci retracement tool, click and drag from the Swing Low to the Swing High in a downtrend, or from the Swing High to the Swing Low in an uptrend. This generates a set of horizontal lines at predetermined Fibonacci ratios, including 23.6%, 38.2%, 50%, 61.8%, and 78.6%. Are you keeping up with me? ;) Now, let's explore some examples of how Fibonacci retracement levels can be applied in cryptocurrency trading The Uptrend: In this instance, the Fibonacci retracement levels were plotted by selecting the Swing Low and Swing High points, which were observed on January 8th, 2021 at a price of $41,904. The Fibonacci retracement levels were $33,521 (23.6%), $29,197 (38.2%), $26,114 (50.0%*), $23,356 (61.8%), and $19,925 (76.4%), as shown in the chart. Traders anticipating that if BTC/USD retraces from its recent high and it will likely find support at a Fibonacci retracement level. This is due to the tendency of traders to place buy orders at these levels as the price drops, creating a potential influx of buying pressure that can drive up prices. While the 50.0% ratio is not officially recognized as a Fibonacci ratio, it has nonetheless become widely used and has persisted over time. Now, let’s look at what happened after the Swing High occurred. Price bounced through the 23.6% level and continued to fall over the next few weeks. Two times tested 38.2% but was unable to fall below it. Subsequently, around January 28th, 2021, the market continued its upward trend and surpassed the previous swing high. Entering a long position at the 38.2% Fibonacci level would have likely resulted in a profitable trade over the long run. The Downtrend Next, we will explore the application of the Fibonacci retracement tool in a downtrend scenario. Here is a 4-hour chart depicting the price action of ETH/USD. As you can see, we found our Swing High at $289 on 14 February 2020 and our Swing Low at $209 later on 27 February 2020 The retracement levels are $225 (23.6%), $236 (38.2%), $245 (50.0%), $255 (61.8%) and $269 (76.4%). In a downtrend, a retracement from a low could face resistance at a Fibonacci level due to selling pressure from traders who want to sell at better prices. Technical traders often use Fibonacci levels to identify areas of potential price resistance and adjust their trading strategies accordingly. Let’s take a look at what happened next. The market did make an attempt to rise, but it briefly halted below the 38.2% level before reaching the 50.0% barrier. The placement of orders at the 38.2% or 50.0% levels would have resulted in a profitable trade outcome. In these two instances, we can observe that price positioned itself at a Fibonacci retracement level to find some temporary support or resistance. These levels develop into self-fulfilling support and resistance levels as a result of all the people who utilize the Fibonacci tool. All those pending orders could affect the market price if enough market participants anticipate a retracement to take place close to a Fibonacci retracement level and are prepared to enter a position when the price hits that level. In conclusion: It's important to note that pricing doesn't always follow an upward trajectory from Fibonacci retracement levels. Instead, these levels should be approached as potential areas for further research and analysis. If trading were as simple as placing orders at Fibonacci retracement levels, markets wouldn't be so volatile. However, as we all know, trading is a complex and dynamic process that requires a combination of knowledge, skill, and experience to succeed. We are truly grateful for your attention and time in reading this post. If you found it insightful and beneficial, we would be thrilled if you could show your support by clicking the <> button and subscribing to our page. We are excited to share that our upcoming post will showcase what occurs when Fibonacci retracement levels do not perform as expected. Stay tuned for an informative and professional read.
Editors' picks
INDEX:BTCUSDEducation
by Vestinda
22
Navigating the Uncertainties of Fibonacci Retracements in CryptoHello, @TradingView community! I'm @Vestinda, and I'm thrilled to share an informative article with you today about Fibonacci Retracements. While they can be useful tools for traders and investors in financial markets, it's important to note that they are not infallible and may not always produce the desired outcomes. As discussed in our previous post, Fibonacci support and resistance levels are not infallible and may occasionally break. It is essential to remain vigilant and use these levels in conjunction with other technical indicators and market analysis to make informed trading decisions. While Fibonacci retracements can be a useful tool in technical analysis, it is crucial to exercise caution and not solely rely on them as the sole basis for trading decisions. Unfortunately, Fibonacci retracements are not infallible and may not always work as expected. Let us examine a scenario where the Fibonacci retracement tool proves to be ineffective in technical analysis. To make a prudent trading decision amidst the ongoing downtrend of the pair, you make a strategic choice to leverage the Fibonacci retracement tool. With meticulous attention to detail, you designate the swing low at 3,882 and the swing high at 10,482 for precise determination of a Fibonacci retracement entry point. The BTC/USD Daily chart is shown below. Upon careful analysis, it is evident that the pair has rebounded from the 50.0% Fibonacci retracement level for multiple candles. As an astute trader, you recognize this crucial pattern and conclude that it is a viable opportunity to enter a short position. You thoughtfully consider, "This particular Fibonacci retracement level is showing remarkable resilience. It is undoubtedly a lucrative moment to short it." You may have been tempted to take a short position in anticipation of profiting from the downtrend of the pair, while simultaneously daydreaming of cruising down Rodeo Drive in a Maserati. However, if you had placed an order at that level without proper risk management, your hopes of profit would have quickly dissipated as your account balance plummeted. Observing the price action of BTC, let's examine what occurred next. Indeed, the price action of BTC demonstrates that the market is constantly evolving, and traders must be prepared to adapt to these changes. As shown in this specific case, the price not only climbed close to the Swing High level, but the Swing Low marked the bottom of the previous downtrend. This serves as a prime example of the significance of flexibility in the dynamic realm of cryptocurrency trading. What can we learn from this? In the world of cryptocurrency trading, Fibonacci retracement levels can be a useful tool to increase your chances of success. However, it's important to understand that they are not foolproof and may not always work as intended. It's possible that the price may reach levels of 50.0% or 61.8% before reversing, or that the market may surge past all Fibonacci levels. Additionally, the choice of Swing Low and Swing High to use can also be a source of confusion for traders, as everyone has their own biases, chart preferences, and timeframes. In uncertain market conditions, there is no one correct course of action, and utilizing the Fibonacci retracement tool can sometimes feel like a guessing game. To improve your chances of success, it's crucial to develop your skills and use Fibonacci retracements in conjunction with other tools in your trading toolkit. Thank you for taking the time to read our post. We sincerely appreciate your attention and hope that you found it informative and helpful. If you did, we kindly request that you show your support by clicking the "Boost" button and subscribing to our page. Your support helps us create more valuable content for our community.
INDEX:BTCUSDEducation
by Vestinda
The DOGECOIN community holds its breath as Twitter logo change.Hello, beloved members of the @TradingView community! I'm @Vestinda, and I've prepared a price analysis for DOGECOIN. As of now, there's a lot of buzz surrounding the replacement of the Twitter logo with the famous Shiba Inu DOGE logo. The replacement of the Twitter logo with the DOGE logo generating increased visibility and exposure for DOGECOIN. This increased exposure potentially attract more buyers, which lead to an increase in demand for DOGECOIN and ultimately result in a price increase. From a speculative perspective, it may be prudent to wait for another wave of price increases. However, it's important to note that heavy resistance lies ahead at the 0.111 level. It's likely that the price will bounce off this level several times before breaking through. Keep an eye on the 0.082 level as well, as there is a high chance that the price will test this support level before making any further moves. What is dogecoin? Dogecoin is a cryptocurrency that was created in 2013 by programmers Billy Markus and Jackson Palmer. It is based on the popular internet meme of the Shiba Inu dog and has gained a significant following among cryptocurrency enthusiasts. Dogecoin operates on a decentralized blockchain network and can be used for peer-to-peer transactions, online purchases, and tipping on social media platforms. We've got some amazing things planned for the future — stay tuned, press <> and subscribe!
by Vestinda
Don't Panic Yet! Bitcoin's Double Top May Not Be a DeathHey, fellow traders of @TradingView community! It's @Vestinda with the latest update on the exciting world of trading. Bitcoin's price chart is showing a Double Top pattern, which is often seen as a signal of a potential decline, with predictions that the price may drop to $25,600. However, it's important to remember that the cryptocurrency market is volatile, and there are many reasons to remain optimistic about the future of Bitcoin. The bearish double top pattern appeared on Bitcoin chart — What you need to know The double top pattern is a technical chart pattern in trading that occurs when the price of an asset reaches a peak, declines, rises to the same level as the previous peak, and then declines once more. Traders can use this pattern to anticipate a potential price decrease, as it indicates that sellers may be gaining strength. To confirm the pattern, traders wait for the price to break below the support level before entering a short trade with a stop loss set above the resistance level. Although the pattern is not always reliable, traders can manage risk by using proper risk management techniques, such as stop losses and position sizing. In other news, the ZeroSync Association is making waves with its tooling that will use zero-knowledge proofs (ZK-proofs) to validate the state of the Bitcoin network. This new tool promises to revolutionize the process of verifying the blockchain, making it more efficient and user-friendly. ZK-proofs have already proven successful in the Ethereum ecosystem, and now, ZeroSync is pioneering their application for Bitcoin, which could lead to exciting new opportunities for the cryptocurrency. Keep an eye on these developments, and remember to always trade with caution and proper risk management techniques. Happy trading! Please feel free to share your thoughts and suggestions on how we can improve our content to better meet your needs. We appreciate your feedback and look forward to hearing from you 💜.
INDEX:BTCUSD
by Vestinda
Get ahead of the Game of Crypto with Dow TheoryWelcome to @TradingView , this is @Vestinda! We're excited to share with you our insights on the Dow Jones Theory and how it can benefit cryptocurrency traders. Dow Theory, also known as Dow Jones Theory, is a trading strategy developed by Charles Dow in the late 1800s. Charles Dow did not write any books during his lifetime, but he did co-found The Wall Street Journal and the Dow Jones & Company. He also wrote many editorials for The Wall Street Journal. Here is a quote from one of his editorials that is particularly insightful: "The successful investor is usually an individual who is inherently interested in business problems." Dow theory continues to dominate and is regarded as one of the most sophisticated contemporary studies on technical analysis even after 100 years. What exactly is Dow Theory? Charles H. Dow compared the stock market to the tides of the ocean in the Wall Street Journal on January 31, 1901. "A person watching the tide come in and wanting to know the exact location of the high tide places a stick in the sand at the points reached by the incoming waves until the stick reaches a position where the waves do not come up to it and finally recedes enough to show that the tide has turned." This method is effective for observing and predicting the flood tide of the stock market." Dow believed that the current state of the stock market could be used to analyse the current state of the economy. The stock market can provide valuable measures for understanding the reasons for high and low trends in the economy or individual stocks. How Does the Dow Theory Work? The Dow Theory is based on several fundamental tenets, which are outlined below: 1. The Averages Reflect Everything: The market price takes into account every known or unknown factor that may impact both supply and demand. According to this observation, the market reflects all available information, even information that is not in the public domain. However, natural disasters such as droughts, cyclones, floods, or earthquakes cannot be considered. Major Geopolitical Events are Already Priced In: All significant geopolitical events, trade wars, domestic policies, elections, GDP growth, changes in interest rates, earning projections, or expectations are already priced in the market. Unexpected Events Affect Short-Term Trends: While unexpected events may occur, they usually only affect short-term trends, and the primary trend remains unaffected. Overall, the Dow Theory emphasises the importance of analysing the primary trend of the market and understanding that all available information is already reflected in the market price. 2. The Market Has Three Trends: The primary trend: It can be as long as one year to several years and is the ‘main movement’ of the market. These movements are typically referred to as bull and bear markets. This primary uptrend is called as bullish on the other hand primary downtrend can be considered as bearish trends. The reality of the situation is that nobody knows where and when the primary uptrend or downtrend will end. As you can see in the image above when a stock is moving in primary uptrend it makes new high followed by few lows not lower than the previous lows. Similarly the same patterns follows when it is in primary downtrend. The objective of Dow Theory is to utilize what we do know, not to make chaotic guess about what we don’t know. Through a set of guidelines from Dow Theory one can measure to identify the primary trend and stay with it. The intermediate trend or secondary trend: This trend can last between 3 weeks to several months. Secondary movements are reactionary in nature, think of them as corrections during bull market, or rallies & recoveries in the bear market. In a bull market, a secondary trend is considered a correction. In a bear market, secondary trend are called reaction rallies. So suppose if a stock during its primary uptrend made a high, it will retrace back to some points to make a low (known as intermediate trend or correction). Likewise during an primary downtrend, a stock can make a high after falling for several months or years(known as bear market rallies). The minor trend or daily fluctuations: This trend is least reliable which can be lasting from several days to few hours. Dow theory suggests not to put much attention to these trends. As a Long-term investor it is just the part of corrections in secondary uptrend or downtrend rally. This are just daily fluctuations happening in market on day to day basis. It constitutes of noise in market and perhaps be subject to manipulation. Out of the three trends mentioned only primary and secondary trends are trustworthy. However, the study of daily price action can add valuable insight, if you look in context of the larger picture. So when you are looking for daily price action of several days, or weeks try to evaluate bigger structure getting formed. By putting enough attention one can certainly benefit in short term rallies. A few pieces of a structure are meaningless, yet at the same time, they are essential to complete the entire picture. 3.Major Trends Have Three Phases: Dow significantly paid attention to the primary trends (major) in which he spotted three phases. These are Accumulation phase, Public participation phase and Distribution phase. These phases are cyclic in nature and repeats over the time. A) Accumulation phase: This phase occurs when the market is in bearish trend, sentiments are negative with no hope for any upcoming uptrend. For example as we saw in Indian share market a steep low in mid cap stocks, making new lows every other day. Most of the investors see them stay in this trend for unknown time period. However, this is the time when big investors, huge fund houses, institutional investors start accumulating them gradually. This is known as smart money keeping their view for long term investment. Although you would see sellers in market still selling, they find the buyers easily. B) Public participation phase: At this phase the market have already absorbed the negativity with ‘smart money’ getting invested. This is the second stage of a primary bull market and is usually sees the largest advance in prices. During this phase majority of public(retailers) also thinks to join in as the price is rapidly advancing. However most of them are left behind due to speed in rallies as well as the averages start heading higher. If you are also a trader or investor you might have this experience and a regret of not able to participate with rally. It is a period followed by improved business conditions and increased valuations in stocks. C) Distribution phase: The third stage is the excess phase which eventually be turned to distribution phase. During the third and final stage, the public (retailers) gets fully involved in the market, as they get mesmerized by the bull market rally. Some of them who felt left will still try to look for valuations and want to be part of the rally. But this is the time when ‘smart money’ starts liquidating shares on every high. Whereas public will try to buy at this level absorbing all liquidating (sell-off) volumes made by big investors. On contrary in the distribution phase, whenever the prices attempt to go higher, the smart money off loads their holdings. This is the beginning of bear market, where sentiments will start turning negative, you will see more and more companies filing bankruptcy, change in economic growth etc. During bear market the level of frustration rises among retail investors as they start loosing all hopes. 4.The Averages Must Confirm Each Other: Dow used to say that unless both Industrial and Rail(transportation) Averages exceed a previous peak, there is no confirmation or continuation of a bull market. Both the averages did not have to move simultaneously, but the quicker one followed another – the stronger the confirmation. To put it differently, observe the image above, as you can see both the averages are in bull market, trending upward from Point A to C. 5. Volume Must Confirm the Trend: Volume is a tool to know how many shares have been bought and sold in a given period of time. It helps in analysing the trends and patterns. Now according to Dow theory, a stock must be in uptrend with high volume and low in corrections. Volumes may not be an attractive piece of information but you should try to combine the volume data with resistance and support levels to get a clear picture. 6. Trend Is expected to Be Continued Until Definite Signals of Its Reversal: Quite similar to Newton’s first law of motion which states that an object will remain at rest or in uniform motion in a straight line unless acted upon by an external force. In simple words an object will remain in their state of motion unless a external force acts to change the motion. Likewise, the market will continue to move in a primary direction until a force, such as a change in business conditions, is strong enough to change the direction of this primary move. You can also see the signals for reversals when a trend is about to change. 7.Signals and Identification of Trends: One of the major challenges faced while implementing Dow theory is the accurate identification of trend reversals. Remember, if you are following the dow theory one should be not only looking for overall market direction, but also the definite reversal signals. One of the main skill used to identify trend reversals in Dow theory is peak and trough or high and low analysis. A peak is defined as the highest price of a market movement, while a trough is seen as the lowest price of a market movement. Dow theory suggests that the market doesn’t move in a straight line but from highs (peaks) to lows (troughs), with the overall moves of the market trending in a direction. An upward trend in Dow theory is a series of successively higher peaks and higher troughs. A downward trend is a series of successively lower peaks and lower troughs. 8. Manipulation In the Market: According to Charles dow the manipulation of the primary trend is not possible. where as Intraday, or day to day trading and perhaps even the secondary movements could be vulnerable to manipulation. These short movements, from a few hours to a few weeks, could be subject to manipulation by large institutions, speculators, breaking news or rumors. There is possibility that speculators, specialists or anyone else involved in the markets could manipulate the prices in short run. Individual shares could be manipulated for example the security rise up and then falls back and continues the primary trend. With this in mind one need to be aware of the situations while trading and investing. However, it would be next to impossible to manipulate the market as a whole. The market is simply too big for any kind of manipulation to occur. Why Dow Theory Is Not Infallible? Dow Theory is not a sure-fire means of beating the market hence it is not something which is infallible or fault-less. Some of the criticism received about Dow Theory is that it is really not a theory. Charles Dow's principles and theories, while developed for the stock market, can still be applied to crypto investing. Here are a few ways his knowledge can be used: Follow the trend: Dow's first principle is that the market moves in trends. In crypto investing, you can identify trends by looking at price charts and technical analysis. If the price of a particular cryptocurrency is in an uptrend, it may be a good time to consider buying. If it's in a downtrend, you may want to consider selling or waiting for a better entry point. Consider market breadth: Dow's second principle is that the market's movements should be confirmed by market breadth. This means looking beyond just the price of one cryptocurrency and examining the overall health of the market. For example, if a particular cryptocurrency is in an uptrend but the majority of other cryptocurrencies are in a downtrend, it may not be a sustainable trend. Use volume as a confirmation: Dow's third principle is that volume should confirm the trend. In crypto investing, volume can provide insight into the strength of a trend. For example, if the price of a cryptocurrency is increasing with high volume, it may indicate a strong uptrend. On the other hand, if the price is increasing with low volume, it may not be a sustainable trend. Be aware of market cycles: Dow's fourth principle is that the market moves in cycles. This means that there will be periods of growth and periods of decline. In crypto investing, it's important to be aware of these cycles and adjust your strategy accordingly. For example, during a bull market, you may want to focus on buying and holding, while during a bear market, you may want to consider shorting or staying on the sidelines. Overall, while the crypto market is different from the stock market, many of Dow's principles can still be applied to crypto investing to help you make more informed decisions. In conclusion, Dow Theory, developed by Charles Dow in the late 1800s, remains one of the most respected theories in financial market history. The theory's primary tenets are based on the idea that the stock market reflects all available information, and there are three trends in the market: primary, intermediate, and minor. The primary trend is the most important and can last several years, while the intermediate trend and minor trend are reactionary in nature. Dow Theory provides an excellent framework for traders and investors to evaluate the current state of the economy, and it has remained relevant even after 100 years. Whether you are an intraday trader, a short-term trader, or a long-term investor, the knowledge of Dow Theory will undoubtedly help you develop various strategies for your investments. So, in conclusion, Dow Theory is a respectful theory that has stood the test of time and continues to be an essential tool for anyone who trades or invests in the financial and crypto market. Unleash Your Inner Trader — Read Story About Bulls and Bears That Will Change Your Mindset! Hey there, our lovely friends! 😊 If you enjoyed reading this, please hit the "like" button 👍 and share it on your social media and groups. By doing so, more people can discover this interesting information, and we'll be encouraged to create even more awesome content for you! ♥️
Editors' picks
TVC:DJIEducation
by Vestinda
15
Breaking the Bears: Bitcoin Bullish MomentumHello @TradingView community. Welcome in @Vestinda Bitcoin price analysis. Reports about bank collapses, stablecoins, and interest rate increases appear to be powerful enough to increase the price of bitcoin. Well, Bitcoin almost hovers above $28,000 amid banking instability. On the other side, we discover chart patterns that suggest a market recovery from the bear trend as Bitcoin surged in the beginning of March 2023 by approximately +80%. 1. Price on long term scale remains in Rising Channel 2. Strong breakout of Downtrend Resistance 3. EMA Ribbon bullish breakout Which means price is likely to continue growth inside Rising Channel, and according to identical move characteristics from 2019, we might land on this move in the upper 40s or low 50s. For sure it is our High-hopes, and in general, the price movement may differ both in time and appearance. What is Rising Channel in trading? A rising channel is a technical analysis tool used by traders to identify an uptrend in the market. It is formed when the price of a security moves between two parallel trendlines, with the upper trendline representing resistance and the lower trendline representing support. The rising channel can be used to identify potential entry and exit points for trades, as well as to determine whether a security is in an uptrend or downtrend. Traders can also use it to set stop-loss orders and take profits when trading, a rising channel helps traders determine where the current price is in reference to the median of the market. Learn about Bulls and Bears on the markets: Hey, what do you like to read next on TradingView? Your feedback will help us create more relevant and useful content! Thank you so much.
INDEX:BTCUSDLong
by Vestinda
2
The Story Behind Bulls and BearsHello @TradingView family , this is @Vestinda, and let's have some fun and enjoy the markets together. Vestinda is driven to offer our knowledge in developing winning strategies and make traders tasks easier. This is The Story About Bulls and Bears. Bulls can lift things up, Bears can eat you for lunch. Who Are The "Bulls" And The "Bears" In The Market The terms "bulls" and "bears" are included in the trader's slang as the main categories of players in the market. Understanding the technique of the game will help you to understand the intricacies of how the market works. "Bulls" are buying investors. Like their totem, they lift the enemy up on the horns. "Bulls" buy, wait for the rising rate and sell at a higher price. They dream of a prosperous economy: the lower the unemployment rate, the higher the GDP, the faster markets grow. Warren Buffett - the most famous representative of the bulls . The Bears play on the opposite side. They earn on the depreciation, in a fading economy. Their ideal world is high unemployment, low GDP and large-scale crises. It all starts long before the collapse of the market: the “bears” buy on credit and immediately resell, artificially creating a drop in prices. After the price becomes cheaper, they are purchased again, but at a lower price, and the debt is repaid. The difference between the first and second purchases is the profit of the bears. 💲 How Bulls Make Money On The Market 💲 "Bulls" buy, when they are sure that the market will go up. Examples of situations where this is possible: 🟣 the shareholder enterprise has published a financial report, and the figures exceeded forecasts; 🟣 the new reform allows to pay less taxes, thereby increasing profits; 🟣 the company has introduced a new product, which, according to analysts, will be in great demand; 🟣 the level of well-being, salary and solvency of the population are growing, which has a beneficial effect on the company's profit. Bullish trades take time – you have to wait to make money. "Bears" are distinguished by shorter trades and the prospect of quick earnings. A red flag for the bulls is an increase in prices by 20% from the lows and the presence of strong prerequisites for further growth. The most favorable moment comes when there are more buyers than sellers on the market. 📍 There Are 4 Key Phases Of A Bull Market:📍 1️⃣ "bearish" trends are gradually fading; 2️⃣ the backdrop of negative news has ended, but there is no confidence in future growth yet, the market is moving sideways, the growth of prices alternates with a fall; 3️⃣ the economy is going up, volatility is decreasing, investors are optimistic; 4️⃣ the peak of growth, traders make easy profits. The market trends are cyclical, a bull market becomes overbought over time and inevitably turns into a bear market. The move up can be uneven, with periods of pullbacks and corrections, that provide an opportunity to profit on counter-trend trades. As a rule, prices didn't rise as quickly and unpredictably as they fall. Therefore, transactions in the "bullish" market are characterized by a longer period, the so-called "long positions". Both own and borrowed money, shares and other assets, which are returned after closing, act as collateral. Long positions are considered more stable, predictable and calm. Therefore the majority of market participants are "bulls" (or consider themselves so). In an uptrend, it's easy to choose an investment because almost everything goes up. However, the "bulls" need to be careful and remember, that there is no eternal growth, the market can be oversaturated at any moment, turning in the opposite direction. It is important for conservative traders to exit the game on time. 💲 How Bears Make Money On The Market 💲 The bears enter the arena during a downturn in the economy and prices. Their tactic is to sell at the beginning of a downtrend and then buy at the end of a downtrend. If they guess the high and low points of the bear market, they will receive the maximum margin. Examples of situations, that will play into the hands of this category of traders: 🟣 there were large-scale economic crises, force majeure situations, natural disasters, epidemics, wars; 🟣 the shareholder enterprise found itself in the center of a scandal or changed its general director; 🟣 sales of the new product failed. A "bear" market comes into its own, when prices fall by 20% from the maximum. There are 4 main stages of the trend: 1️⃣ the bull market is oversaturated and goes into overbought phase; 2️⃣ against the backdrop of negative sentiment, prices fall sharply, and trading activity decreases, panic arises on the market; 3️⃣ prices fell quite strongly, but continue to gradually decline, at this time “bears” enter the market en masse; 4️⃣ seduced by cheaper prices, conservative investors become more active, due to which the market gradually turns in the opposite direction. Thus, the "bear" market is gradually replaced by a "bullish" one. Can a Bull become a Bear? In fact, these divisions are rather arbitrary, they were created by exchange slang. Officially, in the market, you do not need to indicate yourself in which category you belong, so no need to be a bull or a bear all your life. Traders' strategies are good because they can be adapted or completely changed to specific conditions on the exchange. It's not always possible to sell shares at the maximum or buy at the minimum price, so you have to adjust to the average attitude. Therefore, a “bull” can become a “bear”, just like a “bear” can become a “bull”. Conclusion: What are Bulls and Bears in Trading? Bulls and Bears are two sides of the stock market. Bulls are traders who believe that the stock prices will go up, while bears are traders who think that the stock prices will go down. In trading, these two forces are constantly at work, and understanding their roles can help you make better decisions when it comes to investing. Bulls and Bears play an important role in trading as they provide insight on the direction of a particular security or market trend. By understanding their roles in trading, investors can more accurately predict future price movements and make more profitable trades. Dear friends, this is our first post. 😊 If you liked it, press <> 👍, share it on your social networks, groups - it will allow more people get interesting information, and we'll be able to delight you with new posts even more!♥️
INDEX:BTCUSDEducation
by Vestinda
4