2 Basics & 3 Instances to Verify for BTC's Next Move After Every News.
This will absolutely blow your mind!
Your method of identifying effects of every news, may it be the biggest or smallest ones can affect on how you make trading decisions. It's important to take note of every deciding factor you have. As such, you'll get to identify potential impulsive movements in the market coming from your every impulsive decisions as you're part of the market. Yes, I'm referring to you, you're 100% part of the market along with the others.
So, how do you mostly react with the market news?
Do you trade by going along with the next move of the market or do you go beyond it?
If you're one of the traders who choose the latter, then, you're going to discover more as you read this article.
The market reacts to the news by feeding the of the individual reactions of every trader. Let's say for example, high interest rates affect the crypto market negatively. Similarly, traders will react negatively and proceed with shorts. Albeit, to go way beyond this means, you've already anticipated these news to a certain extent.
Here's the secret to it.
(The algorithm will not allow this piece of information to reach you but it will eventually reach you in any possible way).
2 Basics, 3 Instances:
Basic #1: Support
Instances:
Major Support: Mostly positive news with mostly high impact. Always correlates with most financial markets.
Minor Support: Fairly positive & negative news with mostly little to no impact. Often limited to the crypto market only.
Newly Established Support: Mostly negative news with moderate impact. Always correlates with most financial markets.
Basic #2: Resistance
Instances:
Major Resistance: Mostly negative news with mostly high impact. Always correlates with most financial markets.
Minor Resistance: Fairly negative & positive news with mostly little to no impact.
Newly Established Resistance: Mostly positive news with moderate impact. Always correlates with most financial markets.
What is the importance of understanding these 2 basics and 3 instances?
Notice how the major supports and resistances are impacted with highly impacting news. You must be aware by now that these are orchestrated news. News created to make impulsive waves, it can be any with major resistance or support. Relate this with what happened this month. Highly negatively impacting news at the major resistance. Conversely, highly positively impacting news at the major support.
Minor supports are commonly given news with little to no impact and rarely, highly impacting news especially when a previous major resistance is about to be broken through. Just like what happened with the ETF news last year. The same way with minor resistances.
Newly established supports are provided with moderate impacting news. As they're still being tested by everyone in the crypto market. This is an opportunity ground for most as manipulations aren't highly rampant during these times.
In understanding these 2 basics & 3 instances, you'll get a clearer view of every possibilities that might or might not happen in the market. Thus, you'll gain more advantage than those who don't look way beyond what can be seen from the chart. This will then provide better trading decision as you've already navigated the market before it has even sailed.
What to do every after market panic? These mentalities will answer your question.
These mentalities made real traders profitable in a highly competitive market.
The mentality of being passive in observing the high movements of the market, reactive to the stability of the market and aggressive in taking profit.
Once you have these mentalities it will be harder to lose and easier for you to win.
Being passive while everyone's aggressive in every high movement of the market makes you less susceptible to damage from overtrading.
Being reactive to the stability of the market helps you gain more insights as you prepare for the next move and this assists you in mentally preparing yourself for the possibles profit gained and losses incurred.
Being aggressive in taking profit while everyone's passive in taking profit helps you gain more advantage as they all wait for a possible once existing profit to a non-existent one while you're enjoying your profit that you took action with.
Be the trader who's different from the rest.
