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Dct-trading

BTC - Bitcoin today from the bear point of viewDCT-Trading Today I would like to show a bearish possibility of the further BTC course. In my opinion, one should also consider a contrarian alternative at any time, especially with steadily rising prices. Here I show a bear pennant (Rising Wedge) which appears valid, except for a FakeOut of the upper channel boundary. The breakout below the lower channel boundary and the SMA50 are to be considered bearish at least in the short term as these could now serve as potential resistances, also the volume was increased on this occasion. Hint: Currently, the uptrend remains intact, this bear pennant represents a potential reversal formation. _____________________________________ This is not financial advice and or buy or sell recommendation. The chart and its content as well as the associated text reflect only my private views and opinions. Feel free to like or follow me if you like :) Best regards and good luck
Short
by SystemTrader-SNP
Education - How does a bubble develop and what are the signs?Preface: This learning content or information is merely my experience, or are those techniques that I use or find useful. The beauty of technical analysis is that an analysis or forecast can be made using many different approaches. These differ in effort, approach, tools and technical approaches. However, I think one thing is important: Keep the chart as simple as possible, try to see what is obvious and work with as few tools as possible but as many as necessary. If you base your analysis on what seems obvious, it is likely that many other traders will also see it. This in turn would support a movement in the predicted direction. = Self-fulfilling prophecy -> Examples: Moving averages, Fibonacci retracements, Simple formations etc.... ________________________________________________________________________________ Remark: This is supposed to be a small help to identify signs of a bubble formation, I must absolutely note that a lot of experience and knowledge is necessary here, which I can not convey in a hurry, as this would definitely go beyond the scope. Just try to analyze the BTC rise of 2017 with the help of these signs, or even the current rise. What is a bubble ? A bubble is usually easy to recognize in retrospect, a lot of green long candles, few red candles, until usually a high point. Then lots of big and long red candles and few green :) But how do I recognize a bubble while it is forming? Important: Please read through the wave age tutorial I wrote beforehand, this understanding is needed to continue here. If a trend does not consolidate sufficiently, but on the contrary shows shorter and shorter consolidations, rises faster and faster and ideally is still fueled by media interest, then these are the first signs of a bubble. (See bar in the chart) Within a trend, the price must consolidate sufficiently after a rise (to go into this in more detail would go beyond the scope). If now the trend in the period under review over the zenith, so after eg 6 waves, a new high and then further waves, with steeper and steeper price increases, so a bubble is to be assumed. The price MUST consolidate sufficiently to be sustainable. In the weekly, we can see that the price is moving further and further away from the standard SMAs (20,50,200) until it reaches an unnatural distance, which also indicates that the market may be in a bubble. As soon as such signs appear, it is important to set very tight stops, as it can come to an abrupt end. Summary: -Ever steeper rises -Ever shorter consolidations -Distance to SMAs is becoming uncharacteristic of the market Bonus: Media coverage of the asset Annotation: Since the weekly chart is shown here, it is not possible to see how the price reversal occurred. A SKS formed in the H4 , this was the beginning of the end of the steep rise. Also today, we have the same signs as 2017, to note was the very strong and violent reaction , this does not mean that the course will now immediately sink it can go before still on 60.000 , 70.000 or even more high, from my point of view, the current consolidations were not sufficient, I have this in mind when placing a stop __________________________________________________________________________________________________________________________ If I like this kind of tutorial, so leave me a like there and follow me. If there is enough interest I will post more tutorials like this in the future Best regards and good luck DCT Trading
COINBASE:BTCUSDEducation
by SystemTrader-SNP
3
Education - What are divergences and how do I use them? What are divergences and how do I use them in trading? A divergence usually shows the trader that the price is moving in the opposite direction to the indicator (or vice versa). To find a possible divergence in the price you can use various indicators (MACD, Stochastic, Momentum, etc.) I will limit myself to the Momentum indicator, because I use it myself in my trading. What does a divergence say? As already mentioned, the indicator shows me a contrary movement to the price, related to the momentum indicator this means for example: The price rises and forms a new high, but the momentum indicator forms a lower high in the indicator itself compared to the previous PRICE HIGH How do I use a divergence? A divergence can be used in many ways if you know what to do with the information gained. In my opinion, this also depends on the chosen indicator, at least in terms of the information value I get from the divergence. If one is able to identify a divergence correctly, one receives a kind of "warning", in my opinion a divergence by itself does not represent an action signal, but it warns me that in the case of the momentum indicator it comes to a trend slowdown although the price continues to rise. What is to be paid attention to here? -> As mentioned, a divergence by itself is in my opinion NOT a TREND SIGNAL, but a warning or information around which I can now supplement or adjust my trading. -> Very important, there are two ways that one "bends" the divergence to right once the setting of the indicator is crucial, since each trader uses other settings, it is important not to change these in search of a divergence so that one is formed. ->Furthermore, it is important to consider the time unit under consideration, a divergence occurring in H1 is much less meaningful than one in D1. Summary: Divergences are a possibility to add important information to one's trading at an early stage in order to forecast possible price changes that have not yet occurred. They do not represent action signals on their own.
BEducation
by SystemTrader-SNP