ONE OF THE TOP INDICATORS IN THE WORLD OF CRYPTO!
Have you ever heard of the one indication that practically everyone believes should be ignored but is actually a very useful one for trading?
Allow me to explain it to you.
You may always rely on this indicator! regardless of the state of the cryptocurrency market. A token's propensity to maintain its optimistic or bearish market attitude will undoubtedly be shown by the fear and greed index. This indicator has a wide range of applications. First, the general level of fear and greed that people are experiencing can be used to determine the direction of the trend. You can then determine if it would be beneficial to acquire a token when many people are afraid and sell a token when many people are greedy. The fear and greed index will tell you much more than these. And there are more!
You can determine precisely when to stop trading and simply watch from the sidelines by measuring the general sentiment of the market. This enables you to take numerous breaks from the cryptocurrency market. It lets you relax, and a trader who is at ease will make a lot of excellent trading choices. The next time you ignore the fear and greed index, remember this. Always keep in mind that it might prove to be very helpful in determining the truth about what is occurring in the cryptocurrency market.
"HOW DOES THE MARKET STAY ON A CERTAIN LEVEL? ISN'T THE IDEA OF TAKING PROFIT IS TAKING FUNDS IN THE MARKET? WHY DOES IT NEVER RUN OUT?"
Let's provide a clear and concise response. High leveraged, poorly considered transactions will always be devoured by the market, especially those that don't include risk management.
Price increases due to increased demand
Lower prices result from less demand.
Are you aware of why?
A large amount of money will enter the market once many people are willing to use their funds to enter a trade. For instance, the others will invest an average fund of $50, while you will initiate a transaction with $10. Assume that during that team, about one million traders will be joining the market. That amounts to $50 million in a single time frame. As a result, only 50,000 of those traders made money, while the remaining 950,000 had their stop losses struck. Now, $47.5 million will be the total amount of money available for purchase in the market. About $5 million was taken out of the market by the 50,000 traders who pocketed their profits at an average of $100 each. If you subtract the $5 million from the $47.5 million that the 950K traders lost. There will still be $42.5 million in the market that can be utilized to maintain market stability. The next time you believe that the market is deceiving you, remember this. You have to look beyond what is visible to the naked eye. You will gain an understanding of the market economy as a whole in this way.
YOU'RE IN FOR A RIDE AS SOON AS YOU SEE THESE EASY FORMATIONS!
Many traders have observed these structures but are unable to provide an explanation for their true meaning.
I'll make it easy for you to learn.
These kinds of formations are supported by logic and reasoning. When buyers and sellers meet at the bottom, divergences are created, as seen by the candlestick movement from the very bottom. after you've discovered that you can recognize formations like this. Examine the following. Has this token been at this position for a while? If they have, it indicates that it consistently fails to swing below its present price and instead tends to swing upward in order to test resistances. Never forget that a token will continue to bounce after hitting a support. Additionally, there will be a matching number of potential resistance tests before it succeeds. For this reason, these configurations will be highly beneficial in reaching the desired breakout.
These posts are for educational purposes. To guide the people who might still be struggling within the crypto market, those who are new to the environment and volatility and everyone else who needs it.
Stay wise, trade cautiously.