Sunday, October 3, 2021

Basic concept I wish I could show more traders

This only applies to people that attempt to actively trade the market. A HODL'ers strategy is very different and this is not directly applicable to them.

I see a lot of people take crazy losses in crypto (I really only care about my friends, whom I originally got into the crypto). And these people are often so surprised by massive pullbacks and taken off guard by it. They panic sell and never know when to buy in again. They do it too late, then boom another pullback. I can't babysit all of my friends trades enough to keep them positive and making smart moves.

Which leads me to believing more people need to understand the money-flow charts more than any actual analysis of altcoins or bitcoin individually. I use these charts almost exclusively to give myself an idea when to buy in and to start taking profits. On tradingview, I use a combination of TOTAL, TOTAL2, TOTAL3, ALTPERP, TOTALDEFI, BTC.D, and BTC to find confluence for buy-in and take-profits.

An opposite example is how many of my friends were shocked by the massive Bitcoin move the other day. They were amazed to see bitcoin just pump like crazy, and I will certainly say that I didnt expect the almost 10% that it moved, but here are 2 simple plots that give me the idea that a move was coming.

Total Market Cap

Bitcoin Dominance

Both of these plots show long continued trends, and bitcoin dominance was coming to an apex. Again, I did not know the direction of the move. As a matter of fact, I was completely in USDT because in the event things went south, they would have gone VERY south. So I played it safe and am waiting for new market structure to form.

But by just using those plots I was able to at least expect something to happen. It seems so many people are flying blind. And this really only bothers me for my friends that attempt to trade for themselves.

I've ben contemplating finding a way to make these charts public and actually keep people updated on them. I don't see many people using these charts, all I see on twitter and youtube are shilling of micro caps and the obligatory Bitcoin going to $69,000,000 predictions. But Im really unsure if people would use them or how to even begin with getting that account going (social platforms have never been my forte)


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