Second Bull Market, I Became Financially Free
This strategy has allowed me to make MAJOR profits in cryptocurrency.
Crypto Market Sentiment Framework🧵
- Read market sentiment on 𝕏
- Know when to favor long/short positions
- Market sentiment based on price alone
I'll even share a full PDF guide at the end for you to download.
1. 𝕏
Twitter is a powerful tool that allows you to access the opinions, news, and biases of market participants of all levels of expertise.
To leverage 𝕏 for sentiment analysis, follow these steps:
a. Organize your flow
-Follow a balanced mix of advanced, semi-consistent and non-trader influencers
-Only use influencers who provide in-depth analysis, not hype
-Avoid echo chambers by diversifying your sources of information
This will give you a broad view of market sentiment.
b. Identify key sentiment indicators
- The most painful points: find the places where traders show fear or euphoria
- Mass Direction Analysis: Find the general direction the majority is leaning towards and understand why.
We will need this information at the end of the guide.
[2. Technical Analysis/Charts
Price action is one of the best indicators of market sentiment and should always be the first place you look to form your trading bias.
Everything else is just used to reinforce/contest your bias. Here's how we use price action to form a bias
Use the nature of market structure to form your technical bias.
If price is moving in a trending market, it is easier to trade in the direction of the trend, as it is the most likely move.
Your sentiment here should be in line with the market. Example
If the price is in an uptrend, the probability of bullish biases manifesting is high.
So maintain a bullish bias until the uptrend is broken. The same goes for downtrends.
Bullish trend: higher highs, higher lows. Bullish sentiment
Bearish trend: lower highs, lower lows. Bearish sentiment
If price is moving in a ranging market, we look to do the opposite. This is where using 𝕏 sentiment analysis becomes useful.
You should look to go bearish at range tops, rather than going bullish with the rest of the market.
The opposite applies to range dips/supports.
Use this simple rule when price is in a range and follow it until the range breaks:
Long support, short resistance.
Your emotions and people on 𝕏 will make you do the opposite, but learn how to counter your emotions here. Example:
Your next step: Download the full PDF and use it to trade altcoin bounces.
I used it to make money on $SOL + $SUI + $BTC + $PEPE and call the recent bounce of $ETH in my Telegram.
Download it here. Expires in 24 hours