It's one of the most googled questions. You can't really predict that. Or can you? Time to debunk some myths.
Here's what you must know as a chart trader🧵👇1/x
#1 The definition is where most get it wrong already.
Technical analysis = art of price study.
It is used to identify trend changes at an early stage and to maintain an investment position until the weight of the evidence indicates that the trend has reversed". (Pring, 2002)
After $BTC failed to follow through higher, it formed a top breakout failure. Failed patterns often perform better in the opposite direction than anticipated. So, there are significant odds of moving lower - maybe even beyond June lows.
Locally, there's an apparent attempt of a breakout, following the long tail to the downside for #Bitcoin. The confirmation needs a minimum of a daily close through the 19500 USD area to validate the break. Temporary pullbacks can be expected.
Is the #stock & #crypto bear market rally over? Of course, I don't have a crystal ball to answer this with 100% certainty. But, let's give it a check🧵👇
The $INDU average is breaking into new highs, over the 200-day trend. If anything, it is a sign of strength, much more than a sign of weakness. However, it's a resistance area.
Now, the leading YTD performers are the energy $XLE, and the utilities $XLU. Typically, a rally driven by or in the presence of defensive stocks surging may be considered unsustainable - at least, over a long-term period. For this, bulls must be mindful it's a bear market, still.
Is #Bitcoin set up for a huge rally, or rather a big trap? Find full $BTC details here👉bit.ly/3zXKYSr
Local failures populating at the range high area signify the setup for a potential twist, and a more aggressive swing failure, eventually. As $BTC fails to unveil a larger trend, selling pressure may arise near the wedge barrier. See full $BTC review👇
In my crypto trading career, I've made a ton of mistakes. Some had little impact. But, there's one unforgivable investing error that leads to complete ruin...
Let's break it down🧵👇
1) Why would anyone want to be a trader?
Well, it always starts with the WHY. Some people work full-time, but they hate their job. The others will search for freedom and believe trading will give it to them on the silver plate. Yet, the desires are not always what they seem.
2) The truth is, people will act irrationally when facing uncertainty and need to make a decision. At times, just because one had a bad day at work, they will try to run away from their pains by searching for an answer somewhere else. The grass is always greener on the other side
Recognizing trends in the market must be so simple. Impossible to screw this up, right? Well, it couldn't be further from the truth. It's very difficult as the trends are fractals - they are self-complex. Recognizing them is a skill. Here's something I got to aid. Hope it helps🧡
Speaking of trends, let's not forget about volatility. It can be measured in different ways as it corresponds with the probability or money in danger. Indicators such as ATR help control the risk to avoid devastating losses. The FOMC meeting may liquidate many traders tomorrow...
... And to avoid the devastating losses and liquidations tomorrow, you'd need a concise trading system. A well-composed system defines the markets, entries, exits, stop-losses, tactics, and position sizing. Having those in place can save you from extreme ruin. Use this for help!