Many traders think that knowledge is power, so they acquire as much information and tools as possible. You probably already know all of the indicators you will encounter in this course. But knowing isn’t enough. You will learn even more when you apply this knowledge. This course will teach you how to apply this knowledge.
Technical analysis is based on the idea that prices trends over time. So identifying the trend is a very important part of Technical Analysis. It is also a very important element of my trading system.
In the previous chapter we learned about the first step, the Trend. Before starting with the next step, the strength of a trend: Momentum. Momentum is based om the strength of a coin’s price or volume.
For me one of the most important aspects of chart analysis is to look at the structures on a “naked” chart, drawing Support and Resistance lines, etc.. It is often the first subject you encounter when learning Technical Analysis.
Next we are going to look at a higher timeframe chart to get confirmation. Only looking at lower timeframes is a bit like tunnel-vision. Like in real life it is always good to know the bigger picture.
Most traders emphasize on Price when making a trading decision. But Timing is actually the most important step in my trading system. Trading is about buying or selling for the right price at the right time.
In Chapter 2 I used Volume to determine Momentum, the strength in the market. Now I will look at Volume as another tool to time our entry. To do this we will focus on the Depth chart.
When I was new to crypto trading, I still ran into problems, despite following all the 6 previous steps meticulously. Like all crypto traders, I soon found out that Bitcoin’s price movement affects altcoin prices.
Many experienced traders say that profitable trading is not only about finding the best trades, but also about proper Risk Management. Some even go so far to say that profitable trading is only about Risk Management.
In my experience you can’t be a good trader without proper Risk Management.
This chapter is supplementary and shows you what else can be achieved with this knowledge. Now that you have come this far I really like to push the limits of what this course was meant to be about.