Hello everyone, there are several types of market:
👉 the trend Market
👉and the Market range
but also there are in these two types of market (and that is the most important)
● the bear market 🐻
● and the bull market🦬
for example today we are clearly in a range-market-bear-market.
This means that there are big sales and it is better to favor shorts knowing that we are in a price range between 93k and 97k.
in the market therefore which is bearish, that is to say that the bear bends in the face of sales, the dynamic is rather downward, that is to say that as soon as there are small rises there will be big descents (sales).
whereas in a market where there is a strong upward dynamic, therefore the bull market, there will be more interest in putting longs in specific and intelligent places to take advantage of these big rises.
How do you know if you are in a range or a trend?
👉 If btc seems to have parkinson's disease you are in a range.
👉 if btc is sledding, gradually rising or taking off 🚀 you are in a trendIn the range: you need to know when it will break its support or resistance
while the trending market is knowing where it is going
👉 we know very well that it goes up while going down or that it goes down while going up.
Why does btc do this?
Market psychology
It's very simple, the market is studying how to make it possible to win
nor shorts
nor the long ones
👉for example: when the market is bearish it will make big drops and it will rise for several hours making you believe in a possible rise and it will then punish with big drops then sudden rises and big drops here is an example:
here I placed a purchase and won the bet, it was risky in bear market but it had just made a long downward trend, it would have been surprising if it did not go back up to exterminate the late shorts
On the other hand, the winning position must be closed quickly.
so in a range it is better to go short if the market is a Bear market type and it is better to go long if the market is a bull market type
we can see here most of the shorts are winners while most of the longs are losers since we are not in a market that will perform upwards and this is normal there is no need for an indicator to see that when we reach a very high peak we can be sure that by putting a short we have returns on the short
actually there are two ways
the amateur way and the professional way
the amateur way is to say we are in a bear market and we are going to make shorts we are going to win and Bitcoin absolutely does not work like that Bitcoin will go down so that people can place shorts and it will go back up to exterminate them all
In the trade just now, I placed a long at the bottom of the trend knowing this, it then went back up as you could see
as there are many false signals it is impossible in fact to know everything in advance so in a falling market it is true that it is better to place shorts but a professional who likes risk will rather put longs when the whole trend of the short is consumed so at the very bottom all amateur traders continue to put shorts and Bitcoin will go up to destroy their stop loss
bitcoin: show a trend, hesitate and do the complete opposite.
Beginner vs Professional
the beginner will tend to arrive after everyone else. He will need a clear downward trend, for example, so that he can finally place a short and take an impossible market reversal.
the beginner will also understand that he can't get there like that so after everyone else he will place a long as soon as the market falls a little, just to imitate the pros, and the market will crash he will take another losing trade...
🚩 the professional will place shorts and signals in fact which will just analyze that we are in a very high part compared to certain levels (like 95k, incredible support), and he will place a short at a high level, that's how professional works and he always succeeds and he makes crazy profits because whether it's the amateurs who think that it will come back to the rise or the amateurs who think that it is enough to place a short at the bottom of a line it's a disaster everyone loses money everyone finds themselves completely helpless in the face of the variations of the asset...
the last article dealt with total beginners who know nothing at all and want to make money and get fleeced 🏴☠️
This article, sorry, goes a little further and differentiates traders who know what they are doing with professional traders who use good tools and who know the levels, that's where all the intelligence of the trader comes in.
// This Pine Script™ code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © jeromehorus
// ideal for trend market
//@version=6
indicator("level 3",overlay=true)
range = input.int(33,"range")
nh = ta.highest(close,range)
nb = ta.lowest(close,plage)
sup = input.int(1, "break value")
rs = input.int(1,"break range")
tend = input.int(13,"trend study")
// to filter we only count the small variations, not the large ones (sma)
ranges = nh-nb
//filter a little
float tp =0
if (bar_index > 0)
for i=0 to tend
mp = close[i]-close[i+1]>=0?true:false
dp = math.abs(close[i]-close[i+1])
tp := mp ? tp+dp: tp-dp
pr = tp>=0 ? "⬆️": "⬇️"
p33 = tp<=0? false:true
tp :=0
// introduce psychological prices like 99k
if ( p33 and close > nb and close < nb+( ranges/4) or (close > nh[sup]+( ranges[rs]/4) and p33))
label.new(bar_index, low, "B", style=label.style_label_up, color=color.green, textcolor=color.white)
alert("possibility to buy!", alert.freq_once_per_bar)
if ( p33==false and close < nh and close > nh-( ranges/4) or (close < nb[sup]-( ranges[rs]/4) and p33==false))
label.new(bar_index,high, "S", style=label.style_label_down, color=color.red, textcolor=color.white)
alert("allow shorting!", alert.freq_once_per_bar)
plot(nh)
plot(nb)
plot(nb+(ranges/4))
plot(nh-(ranges/4))