What is Trend
The trend is the general idea of a group of people for something very important in the current market, an idea of the well-being of traders, the reality of the same thinking of the many traders, the participation of many in the same approach, fall of many into the blind reality, without thinking in original reality, and to become the profit cycle.
From the perspective of technical analysis, it is an event where you can sell or buy cryptocurrency, from both sides (in profit, in loss) trend determines the profit-loss ratio of your holding, whenever the trend appeared on the circle of the cryptocurrency holders, many start to jump into the direction of the trend.
The birth of trend in cryptocurrency is due to multiple factors related to cryptocurrency, for example, many think that what I hold is not profitable tomorrow, the cryptocurrency is getting lost all of its values, and one authority intervene for sake of well beings of society but these all are the negative side of thinking, and for the positive side, the general belief of what I hold have double its value tomorrow, many will acquire this same cryptocurrency, and this currency is the necessity of life.
It depends on the nature of human, how much we are greed and fear with respect to the cryptocurrency, the ability of us to evaluate the idea of losing value, the determination of the futuristic exchange rate of the currency is pure human nature, we always judge from the event to emotion, make an assumption about entity’s actual value, many times we have fear in our mind and start selling, and some time optimistic and predict the next outcome.
In fact, we always go with our belief, our pursuit of judging the certainty, our human attribute of “habit”(negative thinking, positive thinking) all of them forcing us for giving importance to particular cryptocurrency, we subconsciously added all information in our memory for further thinking.
Our nature of getting wealthy in a short span of time, the convenience of transactions, and our purchasing power, all of them if added together become a common attribute to set a trend that is visible to everyone.
We as a human never ever actually investigate the causes of the latest trends in the market, experts believe that every market on the world always has one trend.
Inside the Crypto market
The trend always based on liquidity, the appearance of the latest transaction determine the ability of the cryptocurrency market to attract liquidity if these type of transactions continues than no one wants to know the metaphysical essence, but to start following the trend, 80% of the following are based on uninvestigated trend.
Trends enhance the future of the market whether is in what direction, judge the future direction of the market.
There are many methods available for cryptocurrency modeling that deterministic to judge the cryptocurrency changing position for example strict stop loss, mentality invariance theory, value regression, and quantitative model all of them just give us the central idea of the current movement of the market, there are many other methods that also helpful in determining the actual condition of the market.
- Returnees rule
- Adam theory
- Single moving average
- Double moving average
- Three moving average method
- Open buying method
- Closing buying method
- Four price method
Trend tracking systems
The idea of hunting the exact trend and finding the top and bottom of the trending cycle is basically the valued skill, most of the time some users have seen as bullish when they are up on the trend and bearish when they are down on the trend, the trend followers think that crypto market is unpredictable and analyzing and judging the trend can tract the right direction.
Trend tracking is the lifeblood of crypto traders, many professional traders used many types of tracking systems that evaluate the latest in the current trend, it is not easy to say that trend tracking will benefit you but 70% of the market transaction are based on trend tracking.
Forecasting and predicting the next depending on the overall objectivity of our interest in the cryptocurrency market, it is true that may be our assessment of next is not partially true but we are rationals, always evaluate and determine the exact situation, our intentional or unintentional thinking is always followed to achieve the purification of our analysis.
If you don't predict the next cryptocurrency result, it is not mean that you cannot understand the dynamics of the cryptocurrency, but there are many factors that are important, forecasting is merged with multiple factors of the cryptocurrency market, the position on loss on cryptocurrency is a unique psychological impact that produced a different forecast and same is true for a position on profit, there are no standard mechanisms for achieving the 100% profit but strictly based on the instincts of rationality.