Multidimensional Guide to Trading - The Five Principles
1. Macro Aspect
We refer to financial markets here, mainly the Nasdaq (IXIC) and cryptocurrency markets. Their trends are closely tied, especially as crypto develops healthily. Grasping macro dynamics and their resonance with crypto can supplement your trading.
2. Technical Aspect
The technical aspect is broad, encompassing many theories and experiences. I prefer the left-side harmonic pattern trading and right-side structural trading approaches.
In ranging markets, left-side catching bottoms/tops avoids emotional trades from whipsaws. Right-side suits trends better - even suboptimal entries can profit by riding the trend with proper sizing.
True momentum trading is "chasing highs and lows" with the trend. But experienced traders confirm breakouts before entering to avoid false moves.
3. News/Data Aspect
Behind trends lie fundamental drivers - the news/data aspect. News/data decisively impacting markets are crucial indicators to watch.
We must monitor FOMC meetings influencing market liquidity. Regulatory developments also significantly impact crypto.
Large institutions and traders all rely on news/data to determine trajectories, as markets won't move without catalysts.
Short-term data like non-farm payrolls, unemployment, CPI etc. also influence FOMC decisions.
4. Sentiment Aspect
Market sentiment extremes mark major tops/bottoms, seen via news, reports, anecdotes etc. Excessive greed signals tops, fear indicates bottoms.
5. Meme Coin Aspect
Meme coins have low liquidity but attract speculators with their wealth effect during consolidations. Analyzing high volume leaders and identifying resonant chart patterns can confirm meme coin trajectories.
Overall market cap metrics like Total3 are also useful for analyzing the meme coin aspect.
Applying these principles requires combining analysis with strategies over the long-term. Follow for more. #hottrends #sol #btc