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Trading by trends and important areas using the example of BTC

BINANCE:BTCUSDT   Bitcoin / TetherUS
Combined a teaching idea and a trading idea. Trading is relevant now. A pair of BTC/USD, a favorite pair of vanguards.
First, I will describe what is happening at the moment and how to trade, provided that you do not trade intraday. Then I will give training material for real use, and not fortune-telling on coffee grounds.

At the moment, a formation like a symmetrical triangle has formed from secondary trends, I wrote about its formation more than 8 months ago. When altcoins will start to be pumped up and under what conditions I also described was in this trading idea. As you can see, everything is going according to plan.

Also, an upward wedge has formed in an upward ( bullish ) secondary trend. In most cases, it breaks down. Perhaps they still reach the resistance of the downtrend symmetrical triangle (purple line), this would be reasonable for further growth.


An ascending wedge is formed when price growth slows and a narrowing figure forms. Prices can no longer rise further, but at the same time, they continue to very uncertainly update local highs. This suggests that the pressure of sellers (bears) is gradually increasing in the market. And the wedge is very likely to be broken down by sellers.

Imagine giving preference to more likely movements, but always have a backup plan. After all, no one knows the future, even the one who creates it. Therefore, in addition to working in a trend and with patterns, work with important areas of support, resistance, and intersection of trend lines . The more important the levels intersect with the trend ones, the more strongly they can affect the further price movement. In these important areas, either trend reversals and further strong breakouts along the trend always occur. I showed them on an example in the graph.

There should be a strategy and plan. At the same time, your strategy and plan should be plastic from market situations.

Think ahead what the crowd will do in certain situations and how it can be punished. Think about how you would do to earn, punish, and “honestly” deceive. Be flexible and smart, calculate in trading all your and other options for action in advance.

Remember - the crowd is always stupid, the crowd is always punished, if they give you money at the beginning, then only to believe in her genius and rightness, and then pick up many times more against her expectations! Think not from the position of a slave, but from the position of a slave owner.

The symmetrical triangle formation that I showed in my trading ideas more than 8 months ago, I saw in the TOP traders only at the end of November. Identify potential formation when the shape is not yet fully formed. Obviously belated observation. But this is how human psychology is built. It’s hard for people to think ahead, so they taught, they see only what they show. The blind man does not want to go without a guide, it’s more convenient.

Previously, media traders did not understand that according to the logic of things, to create the uncertainty of going to the "million dollars" or "$ 100", you need to draw a figure of uncertainty on a global scale, with equal working out up / down in a ratio of 50/50 - a symmetrical triangle is ideal . In any case, the crowd can be deceived on a large scale against its expectations. That figure of such enormous size! When breaking up / down, the triangle fulfills the TA along its width - a figure of this magnitude has a fantastic, shocking working out in any direction.

The faith of the majority imposed by the minority destroys the mountains and minor minority deposits.

If we consider that, according to the rules of TA, in which the majority of the crowd believes, but does not understand why it works / does not work in certain situations. If they believe, then they follow. If they follow, it means by faith - they buy / sell, place orders. Unconscious action - embodies the theory into reality, the main thing for the guide is to direct their faith in the right direction and shape their thinking.

Somewhere the rules of technical analysis work, and somewhere they work only because someone allows them to work. Playing along with the crowd in what she believes.

The ideal option is when they push the price into a corner, they will decide what to do depending on what the crowd will believe in.
Probably there will be massive FUD news, bad / good on all state and hamster fronts, naturally in order to inspire uncertainty. Uncertainty and the "opportunity to not have time" to buy / sell - a friend of the manipulator.

Give the crowd faith in the price movement that they want, give them a sweet illusion of their faith. Let them believe in their strength and genius. And then kill the faith at the most unexpected moment.

It is necessary to instill doubt. No one will take passengers ... Passengers must stay on the platform. And whoever gets knocked off by the most inadequate Stop-loss will first wait, doubt, bite their elbows - and then they will jump into a train that has already gone far.

In the game against the crowd, only time decides the question of when the average zeroing of the deposit in the average person will occur.

It is also necessary not to exclude the option that when they adjust the price to the resistance of the triangle (a downtrend), everyone will believe that, now everyone will push the price down from resistance - a breakdown of the formation will occur.

One must understand that everything is done against the faith of the majority. I often use this in my trading.

80% of cases allow the crowd to earn + 20%, only to then take away 80% from her.

Here is a trading idea with the potential formation of a symmetrical triangle.
The idea was published in June 2019.
BTC is the possible formation of a global triangle. Altpump


BTC / USD This formation looks like this on a global scale from the very beginning of the history of bitcoin .

The same trading idea was published more than 8 months ago in June 2019.


The main thing in this work is always to trade in a trend. You should never go against the trend.

On a bull trend it is better to always work on the bull side; on a bearish trend , on a bearish side. Always follow the trend!

A trend is called a visually detectable rise or fall in price.

Types of trend:
1) Rising ( bullish ) - the market is growing;
2) Downward ( bearish ) - the market is falling;
3) Flat (horizontal, lateral) - movement is observed in the horizontal range.


According to the Dow theory, there are 3 types of trends:

1) main.
2) secondary.
3) insignificant (small).

The main trend is a key market movement. To determine it, you need to open a larger timeframe on the chart, say, monthly or weekly. This global trend ultimately affects everything, including secondary and insignificant trends. According to the Dow theory, the global trend lasts 1-3 years, which, however, can change.
The main trend remains valid until there are clear indications of its completion. One such indication may be, for example, closing the price below the trend line .

A secondary trends, as a rule, goes against the main trend or acts as a correction to it. This is how the main trend can go up, and secondary trends - down.
According to the Dow theory, secondary trends last from 3 weeks to 3 months, and the rollback against the main trend lasts from 30 to 60% of its movement. Also, the secondary trend is usually much more volatile than the main one. All these values ​​are conditional, depending on the characteristics of the trading instrument itself.

Minor trend (small). In theory, this is a market movement lasting up to several weeks. As a rule, it represents a correction to a secondary trend. In reality, the duration of the trend depends on the trading instrument in question.
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A trend has three phases. According to the Dow theory, each trend has 3 key phases:

1) phase of accumulation (distribution).
2) the phase of public participation.
3) phase of panic (realization).

Read more about Dow theory, trend types, and phases in this tutorial:
TRAINING. Theories of the Dow. Types of trends. Phase TRON. Still a little)


Going against the trend is the same thing that falls under the locomotive and hoping that it will not transmit you, but will bounce off of you!
When working with a trend, it is very important to determine the correct trend. Understand which trend you are in and which particular trend you are trading. Each timeframe has its own trend. The market is fractal . Consists of small as big matryoshka.

Trading is the hard way to easy money. It is open to all, only not all will pass ... The more a person is fixated on the final result, and not on the action now, the less chance he has to go this way to the end. Most of these characters, which means the market will still be profitable.

To determine the main trend, a good weekly or monthly chart is suitable, secondary and insignificant - a daily and even smaller timeframe. These trends that are relevant for trading now on the BTC / USD pair I showed on the chart with important areas of trend reversal.

When working in a trend near important areas of a trend break, do not try to buy / sell at lows / highs, work in those price areas where there is liquidity. Sell ​​at the very maximum and buy at the very minimum - leave the hamsters. When confirming a trend reversal, exit the position. Do not be greedy in the trade. Greed - begets poverty.

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Also under the article I attached 20 teaching ideas, many teaching ideas have material that you will never find in TA books. How it’s not customary to talk and show about it).
In almost all ideas, training was online "on a live schedule" in real trading. I did not show "skill" on old schedules.
Comment: The rising wedge was, as expected, broken down, the price approached an important zone - the main trend line (yellow line), which can act as a support.
Trade closed: target reached: from the designated important zone. The triangle is broken down.
Who from the moment of updating the idea on March 9 managed to become a short congratulations on earnings.
The movement continues.

Related Ideas

Comments

great article again !
+1 Reply
SpartaBTC nomatrade
@nomatrade, Thank you
Reply
Good work man!!! Its like a manifesto or something :)
+1 Reply
SpartaBTC FutureBlockchain
@FutureBlockchain, ))))) Thanks for the manifest.
Reply
your idea is great)
Reply
SpartaBTC Alex_Clay
@Alex_Clay, Thank you
Reply
thank you and great insight!
Reply
SpartaBTC angel7979
@angel7979, Use the information.
Reply
SpartaBTC angel7979
@angel7979, Big profit to you in your work.
Reply
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