Conquer Professional Cryptocurrency Trading With This Unique, Easy & Free Guide, Part 2.
“I got into the space pretty recently, September last year.
I decided to get involved; bought a little bit of Bitcoin, and Ethereum back in September.
Bitcoin was about $5,000 when I first bought it. Pretty soon after that, it dropped to around $3,000.
At that time it didn’t feel great, and I didn’t know anything about trading.
I heard about this concept called Dollar Cost Averaging (putting a little bit in every now and again), so I started doing that, and putting every spare money that I got into it.
I realized that being able to trade a little bit would be very beneficial in the long run, so that peaked my interest.
Then I started to consume a lot of the content about the crypto space itself, and trading.
Started following a bunch of people, started seeing accounts with tons of followers posting charts, and hearing about technical analysis.
I guess the main turning point was when I bought this book Technical Analysis of the Financial Markets by John Murphy.
I studied and read it, took notes and learned all the concepts. Then I started applying it.
I was following various people, and one of them was Mind Trader.
I came across some of his charts (somebody retweeted it), and then I started following him because I liked the style of them.
I would say being part of a group, and having mentors is the biggest key to success because we’ve all got access to the information; I’m reading a book about harmonic trading, and it’s very technical, and there are all these details there.
It can be understood; right now I’m applying all these theories, testing them on charts, asking the experts.
“Having 1–1 tuitions is pretty huge regarding the speed of which you learn.”
Do these sentiments — expressed by a member in the Harmonic University taught at Cryptol0gy — sound familiar to you?
They should, according to these statistics on trading (Forex):
- Profitable day traders make up a small proportion of all traders — 1.6% in the average year. However, these day traders are very active — accounting for 12% of all day trading activity.
- The average individual investor under performs a market index by 1.5% per year. Active traders under perform by 6.5% annually.
By applying technical analysis.
A tool employed to evaluate assets and attempt to forecast their future movement by analyzing statistical probabilities gathered from trading activity, such as price movement and volume.
Start by putting your own beliefs about Bitcoin and agenda aside, and realize that market price movements are not purely random: they move in identifiable patterns and trends that repeat themselves over time.
1. Support & Resistance
Okay, let’s get to the chase. That’s what you’re here for.
I will start off with the basics, and we’ll move on to the more advanced stuff like predicting the next bull market very soon so keep reading.
There’s an ongoing battle between bulls (demand) and bears (supply).
The “battle lines” can be defined as the support and resistance levels where the most trading occurs.
At the support level, the demand is perceived to be stronger than supply.
At the resistance level, the supply is perceived to be stronger than demand.
The support level prevents the price from falling further, and vice-versa.
Here’s how you can identify support & resistance levels, step-by-step:
Using your support & resistance lines lets you find points where the price likely reverses.
You can watch this video to learn how to draw charts.
Pro tip: Avoid the weak areas that don’t have more than one touching points.
Find the strong points of support and resistance where the price has bounced off more than once.
2. Trend Lines
You’ve seen these everywhere. And for a good reason.
How can you use trend lines in order to profit from them?
Whenever you open a new chart, before you do anything, you must draw a simple trend line.
Let’s take a look at the 1 Day Bitcoin chart. Needless to say, we’re in an unbelievable uptrend. This is the Bitcoin chart for the last 6 years.
$3,50 per Bitcoin back in 2012.
You don’t need it.
This simple trend line is all you needed to know that the Bitcoin will drop further.
Once the trend line broke and the re-test failed, you knew that Bitcoin would drop back to it’s outer trend line.
If we drop below the current trend line, it’s also possible that we will test the third outer trend line, but we don’t see this as likely.
How can you draw these trend lines, step-by-step?
Another very commonly asked question is how do you find out when the uptrend will continue? Commonly speaking, “when will the correction/bear market end?”.
Since we are long-term bullish on Bitcoin, we will use counter trend lines to confirm the resumption of the uptrend.
Once you confirm the uptrend like we did, you pick the last high we had in the December, and connect those lower highs (definition of a downtrend).
Therefore, the breaking of the counter trend line will confirm that we’re about to resume the overall trend, which is up.
Draw the trendlines to determine the trend.
Find the break of the trend which indicates a short-term pullback.
Draw a counter trendline. Confirms the resume of the overall trend.
Pro Tip: The intelligent way to implement this strategy during corrections is by diversifying your entries and exits.
Entirely predicting tops & bottoms is impossible.
How do you find the excellent times to buy? By using Fibonacci levels.
3. Fibonacci levels
Fibonacci retracement is created by taking two extreme points, a major peak and trough on a chart.
Fibonacci retracement tool divides the vertical distance by the key Fibonacci ratios of of 23.6%, 38.2%, 50%, 61.8% and 100%.
How to use this tool?
Pro tip: Fibonacci level retracements are an excellent choice if you’re looking for times to buy during corrections.
If you’re looking to learn more about using fibonacci levels, watch this video.
Maybe you’ve been working hard to improve your trading results, but haven’t been actively charting your trades. You should give it a try. That’s why we call it “High-Profit crypto trading” and not just “crypto trading.” Start working smarter, not harder with your trading.
One of our Lead Analyst said that if you want to gain massive profits by Swing-Trading, spend 20% of your time charting, and 80% learning and discussing your trading process with an advanced peer-group. This is how massively profitable traders are born.
The ironic reality is that if you stop focusing so much on the daily fluctuations of your portfolio, and instead focus on the long-term process while learning more about the markets, you’ll notice a massive boost both in short-term, and long-term results. This is because the market rewards people with knowledge and patience.
By the way, we opened up a few new spots for Cryptol0gy. You can join by clicking this link: www.cryptol0gy.com/members.
After the spots are filled, we will not let in any new members.
Also, we would like to take a little space here to give congratulations to one of our four our Lead Traders, Mind Trader for getting to 20k followers on Twitter.
Because of this, everyone who’s reading this article can purchase one month of Cryptol0gy membership with an -33% discount. This is up to 0.026 BTC off, and the offer will NOT be available after 3/3/2018 12:00 PST.
The instructions can be found here, essentially all you have to do is send 0.047 BTC here 1HVrTuEkEavjTJyCLBZMZ9ZpVDjKinq9mQ and a screenshot with a Twitter DM (https://twitter.com/Cryptol0gy) after that.
After that, I’ll send you an invitation link, and we’ll go through the starting steps.
You can use this offer by using the code: “Mind Trader” when sending the screenshot of your membership fee withdrawal transaction to us on Twitter.
The most effortless way to understand Cryptol0gy is by going on our website: www.cryptol0gy.com/members
Thank you for reading. I also have a couple questions for you (if you don’t mind answering them) in the comment section below.
How have you been using technical analysis until this point, and what of these strategies will you implement after reading this article?
What is your biggest challenge with trading?
What kind of articles would you like to read?