I will show you 2 easy high win rate patterns where MAs combined with basic TA techniques can earn us money
Let’s jump right in 👇🏽
1) Shorting first consolidation after a support is broken and MA trend is reversed
When major support levels are broken and low timeframe MAs start to reverse (push downwards on price) we can often short the first consolidation after a breakdown with high win rate.
Example 1a) shows Bitcoin losing major support, we wait for the consolidation after the breakdown then short just before MAs follow up to price - continuation of breakdown occurs.
Example 1b) DOT loses support level with low timeframe MAs pushing down on price. We wait for the initial consolidation after the breakdown and short it right before MAs follow up.
The steeper the angle of the MAs following on price the more chance it has to break down further
If the MAs following down on price are becoming flat it is not a good idea to short - this is why I only teach you to short the initial breakdown after a support is broken/trend is reversing.
2) Longing the first breakout of a key resistance level (if low timeframes MAs are flat/retaken)
We can often long the first consolidation of a major resistance breakout given
- LTF MAs are flat
- HTF MAs aren't pushing down at a too steep angle/there is a gap
Example 2a)
Price breaks key resistance & all MAs on similar timeframes look good to reverse OR there is a gap between low timeframe MAs and price👇🏽
We can then long the first consolidation after a breakout and wait for MAs to follow up price and push it higher (continuation)
Example 2b) Key resistance break & MAs on daily turn flat and retaken -> We long first consolidation. Price spikes up to 1D MA200
(extra: if we studied MA theory we see that the MA 200 is not ready to reverse - pump isn't be sustainable we could have also shorted that wick)
Example 2c) Again, breakout of key resistance with MAs turning flat & retaken.
We long the first consolidation and wait for MAs to follow up and ignite consolidation 🔥
With this knowledge we can set alerts on assets that notify us of breakouts/breakdowns of key levels.
This is how to analyze #altcoins and #stocks charts from A-Z identifying trend, accumulation, distribution and more to find x2-x50 winners such as $MATIC, $APTS, $SOL, $ADA, $XRP
and most importantly creating a trading plan for each asset
Let’s jump right in 👇🏽
After opening a new chart we want to:
1) Map out key levels on high timeframes 2) Identify trend and stage of trend 3) Identify high timeframe accumulation/distribution with additional indicators 4) Make a trading plan based on your trading style
Example: $SOL
1) Mapping out key levels on high timeframes.
After opening a fresh chart I like to have no indicators on and go on a high timeframe. The first thing we are going to do is identify key levels on the highest possible timeframes (monthly/weekly/3D)
Reminder! Bear markets are the absolute best for finding opportunities!
A bear market can be divided in 3 stages
Stage 1: Market turns bearish, money starts exiting the market. Denial, fear and desperation. Everything bleeds rapidly as liquidity dries up - #crypto, $BTC, $ETH
Stage 1 is not a stage where we want to buy and be long!
The only exception is extremely oversold days/days with liquidation cascades - these are the only days we want to buy oversold assets for the short term.
Stage 2: This is a stage where market goes into boring mode. Volatility is low and market chops sideways for months.
Altcoins continue bleeding. This is a stage where we want to look to find and accumulate hidden gems for cheap prices.