Thread by @the_economystic

1/ @ElrondNetwork #EGLD → B.T.F.D. ✊
🚨 The most profitable trades of your life will be the most difficult ones to execute! The longer + lower price goes perpetuates a neg. feedback loop as disappointed investors create an echo chamber. Success means to rise above it!! 🧠⚡💪

2/ As new investors step in to buy supply, older ones incentivized to sell for profit add supply to the market as price rises. Continual cycles of contraction and expansion over time reveal the underlying sentiment towards the asset itself. Supply and demand; ebb and flow... ⚖️

3/ 💡Ready to take notes?📝

Constructive foundation *MUST* built by:

1. Market realizes resistance: too much supply / not enough demand at certain price level → Price falls.

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2. Accumulation reduces supply: As price goes down, the same dollar amount gains more power to buy more supply at a lower price → over time supply is bought up and price looks to be agreed upon until demand can turn falling price around.

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3. Resistance re-tested: Participants capitalize on accumulating the asset at lower prices. Sellers eventually run low on supply to sell/add to the market. Therefore, the market must make a higher price to entice sellers → Price rises back to prior level of resistance.

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4. Resistance fails! (breakout): Demand for the asset entices sellers at higher prices. When there is too much demand and not enough supply, price will “break out” and discover prices that sellers are willing to agree to sell.

7/ 🔑 Retests: Price begins to climb as demand builds underneath the asset. Price will continue to be discovered based on the price that sellers agree to sell and buyers are willing to buy...

8/ Since cash has less power as price rises, if too many sellers decide to sell and there isn’t enough cash to buy the supply, this is where “resistance is realized”. Sellers are ready to realize profits and will add supply to the market, selling into strength...

9/ The level defined between “breakout” and “resistance realized” effectively becomes “in the green” for accumulators so they are more likely to sell, thus “realizing profits” by selling what they accumulated at a lower price. 🪙

10/ Because of this, the “breakout” area is highly significant: it is testing the validity of an uptrend. Uptrends can only happen when, over time, demand for the asset is truly outweighing supply.

11/ In short, these retests ask the whole market whether the asset is truly being accumulated or if sellers are only manipulating price by accumulating low and selling once they are in profit.

12/ Because of this, it is natural for price to fall back down to retest the prior breakout level. It is literally testing the legitimacy of the asset: "Is this asset valuable and worth holding for the majority?"
⭐ A retest passes if price bounces off prior level of resistance.

13/ ⭐A retest "fails" if price falls back into prior area of accumulation.
🔑 Failure means the market needs more certainty to grow. Those who believe in its value must show willingness and ability (cash inflows) to *reduce supply via buying/holding/accumulating the asset.*

14/ Below is the entire history of @ElrondNetwork against $USD. I will say it again:

THE MOST PROFITABLE TRADES WILL LIKELY BE THE MOST DIFFICULT TO EXECUTE! 👏

When price is at the bottom, complete failure seems the only way forward. Who in their right mind would buy?! 🤯🤔

15/ 💡Trend = behavior = sentiment indicator.

Sticking with a trend over time you will experience many of the same ebbs and flows. At the bottom it looks bad and people are upset. At the top, there's talk of moon and retirement. Just ride the long-term!

https://twitter.com/the_economystic/status/1482571781135224833?s=20&t=RnPISRLfF5OwT8BXtl9rrg

16/ 💡 Each of the rectangles below were followed by expansion. The case for @ElrondNetwork is only getting stronger as times goes on. The $EGLD coin gains more utility each day and the team at Elrond continues forging new partnerships and backers week over week.

17/ Though the behavioral tendency of $EGLD is indeed volatile, if you have the trust and guts to buy the bottoms of each accumulation channel, your money is going to be in an extremely powerful position. Ride the wave and STICK WITH IT! 💪🌊

https://twitter.com/the_economystic/status/1482571973246930947?s=20&t=RnPISRLfF5OwT8BXtl9rrg

18/ As I said yesterday, selling to "buy lower" can be just as risky as simply holding. Markets are inherently designed for maximum punishment both in bull runs AND in bear markets. Sometimes the absolute best action to take is no action at all. #inaction

https://twitter.com/the_economystic/status/1521252056635346944?s=20&t=RnPISRLfF5OwT8BXtl9rrg

19/ Since my first thread on Twitter, I have preached the importance of 1) Discovering valuable assets #DYOR 2) Gauging your own risk tolerance and time horizon #NFA and 3) Supporting your investment by dollar-cost averaging thus effectively lowering your entry price. #DCA 🧠