LIVETrading with Paws
@Trading_with_Paws
Hello!
I'm a novice trader, and together with my dog we engage in paw trading!🐾🐾
I'm sharing my thoughts and ideas🐾🐾
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🐾 Point of Interest 🐾
Point of Interest (POI) - is an area of interest or potential price movement reversal where a trading setup is applied to open a position.
POIs are identified on higher timeframes for reference and refined on lower timeframes to select the trading setup. POIs typically form within supply & demand zones on the higher timeframe. This could include:
• BTS/STB;
• order block;
• breaker block;
• sponsored candle;
• Wyckoff, etc.
#Write2Earn #EducationalPost #TradingTips
$BTC $SOL $ETH
Point of Interest (POI) - is an area of interest or potential price movement reversal where a trading setup is applied to open a position.
POIs are identified on higher timeframes for reference and refined on lower timeframes to select the trading setup. POIs typically form within supply & demand zones on the higher timeframe. This could include:
• BTS/STB;
• order block;
• breaker block;
• sponsored candle;
• Wyckoff, etc.
#Write2Earn #EducationalPost #TradingTips
$BTC $SOL $ETH
Sponsored Candle (FU candle) is a candle that reflects liquidity removal manipulation on the chart, leading to a trend reversal. It often triggers a strong reaction upon testing (mitigation) in the future.
The schematic representation of a sponsored candle often resembles a candle with long shadows, sometimes significantly exceeding the height of the body.
Aggressive liquidity removal and structure breakdown on increased volumes indicate smart capital manipulation.
Sponsored candle is used as a tool for opening a position.
Similar to an order block, the ideal zone is considered to be 0.5 of the sponsored candle body, but in practice, price often reacts initially to the shadow and later to the body of the candle.
A secondary test of the sponsored candle body typically indicates that the large volume of smart capital orders used for manipulation couldn’t be closed (mitigated) on the first attempt.
#educational_post #EducationalPost #TradingTips
$BTC $DOGE $SHIB
The schematic representation of a sponsored candle often resembles a candle with long shadows, sometimes significantly exceeding the height of the body.
Aggressive liquidity removal and structure breakdown on increased volumes indicate smart capital manipulation.
Sponsored candle is used as a tool for opening a position.
Similar to an order block, the ideal zone is considered to be 0.5 of the sponsored candle body, but in practice, price often reacts initially to the shadow and later to the body of the candle.
A secondary test of the sponsored candle body typically indicates that the large volume of smart capital orders used for manipulation couldn’t be closed (mitigated) on the first attempt.
#educational_post #EducationalPost #TradingTips
$BTC $DOGE $SHIB
🐾 Supply and Demand Zone 🐾
The Demand Zone is the last downward movement, consisting of a single candle or a sequence of candles (STB), before moving upwards.
The Supply Zone is the last upward movement, consisting of a single candle or a sequence of candles (BTS), before moving downwards.
Testing the demand/supply zone or mitigations. When the price reaches in any direction and on any timeframe, smart capital leaves positions open, which initiated movements to gather liquidity: BTS and STB. Such positions become unprofitable in the event of a trend reversal, so they must be closed - at a loss or at a profit. Otherwise, smart capital will suffer losses, which is highly unlikely.
Thus, to close unprofitable positions, smart capital opens new positions to deliver the price to supply/demand zones, where the mitigation process occurs - closing old positions that initiated manipulation.
#EducationalPost #TradingTips
The Demand Zone is the last downward movement, consisting of a single candle or a sequence of candles (STB), before moving upwards.
The Supply Zone is the last upward movement, consisting of a single candle or a sequence of candles (BTS), before moving downwards.
Testing the demand/supply zone or mitigations. When the price reaches in any direction and on any timeframe, smart capital leaves positions open, which initiated movements to gather liquidity: BTS and STB. Such positions become unprofitable in the event of a trend reversal, so they must be closed - at a loss or at a profit. Otherwise, smart capital will suffer losses, which is highly unlikely.
Thus, to close unprofitable positions, smart capital opens new positions to deliver the price to supply/demand zones, where the mitigation process occurs - closing old positions that initiated manipulation.
#EducationalPost #TradingTips
Pattern Three Movements
The Three Movements pattern, also known as Three Indians, is a model from the graphical analysis method.
The essence of this pattern lies in finding a dynamic level of support or resistance built using 3 swings.
The mechanical aspect of the pattern involves removing liquidity from each subsequent swing, where smart money opens positions by liquidating stop orders of uninformed traders.
When forming the Three Movements pattern, there is often a divergence between price and indicator readings (RSI/MACD) or volumes.
The Three Drive Pattern graphical model allows identifying trend reversals at early stages of their formation.
The third touch is fundamentally important, after which it's possible to consider entry when forming other reversal candlestick patterns as confirmation of intention.
Typically, a true third touch occurs in the form of manipulation into the area of interest (untested supply/demand zone).
#EducationalPost #TradingTips
The essence of this pattern lies in finding a dynamic level of support or resistance built using 3 swings.
The mechanical aspect of the pattern involves removing liquidity from each subsequent swing, where smart money opens positions by liquidating stop orders of uninformed traders.
When forming the Three Movements pattern, there is often a divergence between price and indicator readings (RSI/MACD) or volumes.
The Three Drive Pattern graphical model allows identifying trend reversals at early stages of their formation.
The third touch is fundamentally important, after which it's possible to consider entry when forming other reversal candlestick patterns as confirmation of intention.
Typically, a true third touch occurs in the form of manipulation into the area of interest (untested supply/demand zone).
#EducationalPost #TradingTips
Order block in trading.
An order block is a candle in which smart capital has traded a large volume with the aim of accumulating a position.
Visually, it appears as the last bullish candle before an impulse drop and the last bearish candle before an impulse rise. The order block is a derivative tool of BTS/STB, as it follows the same logic in both formation and subsequent reaction (mitigation).
A correct order block is one that has been fully absorbed by the impulse movement and has small shadows. The candle's shadow does not affect the order block itself.
When returning to the order block (mitigation), the price is highly likely to react and reverse.
In practice, the price often receives a reaction from the body of the candle, while the shadows are ignored. It is considered that the main volume of orders/large capital was traded within the candle's body.
The ideal zone for reaction is considered to be 0.5 of the candle's body height.
#EducationalPost #TradingTips #Bitcoin
$BTC $SOL
An order block is a candle in which smart capital has traded a large volume with the aim of accumulating a position.
Visually, it appears as the last bullish candle before an impulse drop and the last bearish candle before an impulse rise. The order block is a derivative tool of BTS/STB, as it follows the same logic in both formation and subsequent reaction (mitigation).
A correct order block is one that has been fully absorbed by the impulse movement and has small shadows. The candle's shadow does not affect the order block itself.
When returning to the order block (mitigation), the price is highly likely to react and reverse.
In practice, the price often receives a reaction from the body of the candle, while the shadows are ignored. It is considered that the main volume of orders/large capital was traded within the candle's body.
The ideal zone for reaction is considered to be 0.5 of the candle's body height.
#EducationalPost #TradingTips #Bitcoin
$BTC $SOL
Types of Divergences
Divergence is a particularly popular tool when using oscillators (such as Stochastic, RSI, MACD). It is characterized by a discrepancy in the trend's character between the price and the oscillator itself.
🐾 Classical: signal for a possible trend reversal.
Extremes of one character do not repeat each other - the price may update highs (in a bullish scenario), but according to the indicator, they decline.
📊 When classical divergence is detected, traders with open positions should be cautious.
Also, one can attempt to reverse the market - in this case, a counter-trend trade is opened with a small volume, and if the reversal is confirmed, the trader can add volume.
🐾 Hidden: signal for trend continuation after consolidation.
In the bearish scenario, the price does not update lows unlike the indicator, and in the bullish scenario, vice versa.
📊 Entering a trade should be done cautiously - the trend may continue, but not for long.
🐾 Extended:
Similar to classical, it may also indicate a trend reversal, but the price extremes are at the same level.
📊 Entering a trade in this case is safer, as the bounce from the level serves as a basis, and the divergence serves as confirmation.
#EducationalPost #TradingTips
🐾 Classical: signal for a possible trend reversal.
Extremes of one character do not repeat each other - the price may update highs (in a bullish scenario), but according to the indicator, they decline.
📊 When classical divergence is detected, traders with open positions should be cautious.
Also, one can attempt to reverse the market - in this case, a counter-trend trade is opened with a small volume, and if the reversal is confirmed, the trader can add volume.
🐾 Hidden: signal for trend continuation after consolidation.
In the bearish scenario, the price does not update lows unlike the indicator, and in the bullish scenario, vice versa.
📊 Entering a trade should be done cautiously - the trend may continue, but not for long.
🐾 Extended:
Similar to classical, it may also indicate a trend reversal, but the price extremes are at the same level.
📊 Entering a trade in this case is safer, as the bounce from the level serves as a basis, and the divergence serves as confirmation.
#EducationalPost #TradingTips
What is a false breakout?
False breakout is a situation on an asset's chart where buyers or sellers manage to break through a strong level, but fail to hold above it, after which the price reverses.
Often, false breakouts have two reasons, namely:
🐾 market panic at highs and lows;
🐾 price manipulations by market makers.
Identifying market panic is much easier than manipulations. It often occurs at extremes - at trend highs or lows. At such moments, beginners, and even some experienced traders, often succumb to FOMO, excitement, and hope that the price will continue to move in the desired direction. In such cases, candles on hourly and four-hour charts fail to close above the reached level and form tails.
The situation with market makers can arise at any time and at any point in the trend, so it poses a particular danger. If large participants want to gather cheap contracts or "shake out the weak hands", a false breakout is depicted on the chart.
Usually, market makers collect profits near levels where the majority of stop orders are placed. In simpler terms, they liquidate positions, gathering liquidity.
A false breakout can always be identified by one key factor - low trading volume. If a trader sees an impulse but the volume indicator is at low values, they have two options - either not to enter a trade or to open a trade in the opposite direction of the impulse.
#EducationalPost #TradingTips
False breakout is a situation on an asset's chart where buyers or sellers manage to break through a strong level, but fail to hold above it, after which the price reverses.
Often, false breakouts have two reasons, namely:
🐾 market panic at highs and lows;
🐾 price manipulations by market makers.
Identifying market panic is much easier than manipulations. It often occurs at extremes - at trend highs or lows. At such moments, beginners, and even some experienced traders, often succumb to FOMO, excitement, and hope that the price will continue to move in the desired direction. In such cases, candles on hourly and four-hour charts fail to close above the reached level and form tails.
The situation with market makers can arise at any time and at any point in the trend, so it poses a particular danger. If large participants want to gather cheap contracts or "shake out the weak hands", a false breakout is depicted on the chart.
Usually, market makers collect profits near levels where the majority of stop orders are placed. In simpler terms, they liquidate positions, gathering liquidity.
A false breakout can always be identified by one key factor - low trading volume. If a trader sees an impulse but the volume indicator is at low values, they have two options - either not to enter a trade or to open a trade in the opposite direction of the impulse.
#EducationalPost #TradingTips
Compression (Low Resistance Liquidity Run)
🐾 Compression or LRLR is an efficient price delivery method that leaves fresh liquidity behind highs/lows.
🐾 The main feature of compression is that the price traverses demand and supply mitigation zones and/or covers price imbalances (fully or more than 50%).
🐾 Compression forms a liquidity trendline that will act as a catalyst for aggressive price movement in the future. The idea behind compression is that efficiently delivered price does not require demand and supply mitigation zones (as smart capital has already conducted all necessary manipulations earlier).
🐾 Therefore, it can be assumed with the highest probability that the compression zone will create the least resistance for the price.
#EducationalPost #TradingTips
🐾 Compression or LRLR is an efficient price delivery method that leaves fresh liquidity behind highs/lows.
🐾 The main feature of compression is that the price traverses demand and supply mitigation zones and/or covers price imbalances (fully or more than 50%).
🐾 Compression forms a liquidity trendline that will act as a catalyst for aggressive price movement in the future. The idea behind compression is that efficiently delivered price does not require demand and supply mitigation zones (as smart capital has already conducted all necessary manipulations earlier).
🐾 Therefore, it can be assumed with the highest probability that the compression zone will create the least resistance for the price.
#EducationalPost #TradingTips
🐾 The “Adam and Eve” pattern is a reversal formation in a downtrend. A sharp and deep first base with high volume (Adam) and a gradual rounded second base with decreased volume form the pattern. Price action then consolidates in a narrow range, and the market instrument confidently breaks above the neckline.
🐾 When Eve’s peak transitions into a flat range, it represents an excellent entry point, but only after the breakout.
🐾 In essence, working with this pattern is no different from a double bottom or double top:
Entry - after the breakout of the neckline or on a retest of the breakout level.
Target - the target is equal to the height from the pattern’s low to the neckline.
Stop - after entry below the breakout level or local minimum.
#patterns #educational_post
🐾 When Eve’s peak transitions into a flat range, it represents an excellent entry point, but only after the breakout.
🐾 In essence, working with this pattern is no different from a double bottom or double top:
Entry - after the breakout of the neckline or on a retest of the breakout level.
Target - the target is equal to the height from the pattern’s low to the neckline.
Stop - after entry below the breakout level or local minimum.
#patterns #educational_post
Tokens RUNE, STX, and ORDI May Surge Following Bitcoin Halving
The dual reduction in rewards received by Bitcoin miners is one of the key events for the cryptocurrency market. Following the halving of the leading cryptocurrency, a significant surge in tokens within the ecosystem, such as $STX , $RUNE , and $ORDI , may occur. This insight comes from CoinDesk, citing experts from the over-the-counter division of Wintermute.
"In the #Bitcoin ecosystem, there is a pool of capital that is not being utilized anywhere. Surprisingly, there are few quoted assets that traders can use. Once the Bitcoin ecosystem receives a new influx of capital, STX, RUNE, and ORDI may see growth," analysts noted.
According to data from CoinGecko, the aforementioned assets have already demonstrated significant growth over the past 12 months. Specifically, the THORChain token (RUNE) surged from $1.6 to $10.4. The Stacks (STX) asset, which traded below $1 in April 2023, reached $3.8.
Furthermore, the growth of the ORDI coin should be highlighted, which has surged by 2500% since its listing in September 2023. At the time of publication, the asset is trading near $75, according to TradingView.
Additionally, over the last seven days, there has been a spike in trader interest in Ordinals collections on the Bitcoin network, while activity on other blockchains has decreased by over 90%.
The potential positive impact of the halving has already been factored into Bitcoin's current price, according to Marathon Digital CEO Fred Thiel. He forecasts that after the reward reduction, the breakeven point for the company will be $46,000 per 1 BTC. According to CoinShares' forecast, the average cost of mining one coin will be $37,856.
"In the #Bitcoin ecosystem, there is a pool of capital that is not being utilized anywhere. Surprisingly, there are few quoted assets that traders can use. Once the Bitcoin ecosystem receives a new influx of capital, STX, RUNE, and ORDI may see growth," analysts noted.
According to data from CoinGecko, the aforementioned assets have already demonstrated significant growth over the past 12 months. Specifically, the THORChain token (RUNE) surged from $1.6 to $10.4. The Stacks (STX) asset, which traded below $1 in April 2023, reached $3.8.
Furthermore, the growth of the ORDI coin should be highlighted, which has surged by 2500% since its listing in September 2023. At the time of publication, the asset is trading near $75, according to TradingView.
Additionally, over the last seven days, there has been a spike in trader interest in Ordinals collections on the Bitcoin network, while activity on other blockchains has decreased by over 90%.
The potential positive impact of the halving has already been factored into Bitcoin's current price, according to Marathon Digital CEO Fred Thiel. He forecasts that after the reward reduction, the breakeven point for the company will be $46,000 per 1 BTC. According to CoinShares' forecast, the average cost of mining one coin will be $37,856.
What are the types of market manipulations?
Wash Trading
is a trading method where large asset holders trade among themselves, creating an illusion of activity and misleading retail investors. The mechanism is simple: alternating red and green candles. Wash trading is used for two main reasons:
Creating visibility of activity or demand for a particular currency/trading pair;Artificially increasing trading volumes to pay exchange fees under the guise of trading operations.
A great example is NFTs. The year 2021 was marked by an NFT boom. According to ChainAnalysis, at least $44.2 billion was transferred to ERC-721 and ERC-1155 contracts, opening opportunities for wash trading and money laundering through self-funded transactions. NFT purchases were often made by sellers or their sponsors. There were several hundred such transactions:
Pump & Dump
Classic approach: disseminating information that shapes expectations of asset growth and increases demand. When the price reaches the desired level, scheme participants sell their assets, profiting from inexperienced investors.
Key methods of provoking pump and dump:
Hype: Loud statements about the "next Bitcoin" or "Ethereum killer" create optimism among investors, but in 95% of cases, it's just speculation and more of a warning sign.Sharp price increase: If a little-known token rapidly increases in price, caution should be exercised. Parabolic growth can be a trap for retail investors.News cycles: Positive news coincides with large purchases by major players, creating a sense of successful news trading and "whale insiders," motivating retail investors to buy.
Examples of pump events:
Crypto.com advertised during the Super Bowl.Tesla buys BTC.Coinbase goes public.Elon Musk changes his Twitter icon to a Dogecoin dog.
All of these events are aimed at creating excitement and stimulating impulsive purchases by retail investors.
Bear Raid
The essence of this tactic is that large market participants open short positions and begin to spread negative information about the asset, creating FUD (fear, uncertainty, and doubt). If FUD takes effect, investors panic and close long positions, effectively becoming "fuel" for short-term traders. The typical bear raid scheme looks like this:
Launch FUD.Open several large short positions.Maintain panic among investors.Take profits.
To counteract this type of manipulation, it is important to use various sources of information and differentiate between justified negativity and FUD.
Spoofing
is a manipulation method that involves placing fake orders that are canceled before execution. Since the quantity of buy and sell orders is one of the main trend indicators for traders, fake orders can prompt decisions favorable to the manipulator.
Example: On May 6, 2010, news about the Greek crisis in the EU began to be actively discussed. However, suddenly American indices fell by 10% in a matter of seconds, causing momentary panic. Within minutes, prices recovered as if nothing had happened.
The main goal of financial market participants, including cryptocurrency ones, is to make a profit. However, different players use different methods: some achieve their goals through research, trial and error, and long-term strategies, while others deliberately deceive investors to manipulate prices and make easy and quick profits.
For successful operation in the crypto market, it is important to be able to resist manipulations, rely on verified information, and conduct thorough analysis when making decisions.
$DOGE $BOME $MEME
is a trading method where large asset holders trade among themselves, creating an illusion of activity and misleading retail investors. The mechanism is simple: alternating red and green candles. Wash trading is used for two main reasons:
Creating visibility of activity or demand for a particular currency/trading pair;Artificially increasing trading volumes to pay exchange fees under the guise of trading operations.
A great example is NFTs. The year 2021 was marked by an NFT boom. According to ChainAnalysis, at least $44.2 billion was transferred to ERC-721 and ERC-1155 contracts, opening opportunities for wash trading and money laundering through self-funded transactions. NFT purchases were often made by sellers or their sponsors. There were several hundred such transactions:
Pump & Dump
Classic approach: disseminating information that shapes expectations of asset growth and increases demand. When the price reaches the desired level, scheme participants sell their assets, profiting from inexperienced investors.
Key methods of provoking pump and dump:
Hype: Loud statements about the "next Bitcoin" or "Ethereum killer" create optimism among investors, but in 95% of cases, it's just speculation and more of a warning sign.Sharp price increase: If a little-known token rapidly increases in price, caution should be exercised. Parabolic growth can be a trap for retail investors.News cycles: Positive news coincides with large purchases by major players, creating a sense of successful news trading and "whale insiders," motivating retail investors to buy.
Examples of pump events:
Crypto.com advertised during the Super Bowl.Tesla buys BTC.Coinbase goes public.Elon Musk changes his Twitter icon to a Dogecoin dog.
All of these events are aimed at creating excitement and stimulating impulsive purchases by retail investors.
Bear Raid
The essence of this tactic is that large market participants open short positions and begin to spread negative information about the asset, creating FUD (fear, uncertainty, and doubt). If FUD takes effect, investors panic and close long positions, effectively becoming "fuel" for short-term traders. The typical bear raid scheme looks like this:
Launch FUD.Open several large short positions.Maintain panic among investors.Take profits.
To counteract this type of manipulation, it is important to use various sources of information and differentiate between justified negativity and FUD.
Spoofing
is a manipulation method that involves placing fake orders that are canceled before execution. Since the quantity of buy and sell orders is one of the main trend indicators for traders, fake orders can prompt decisions favorable to the manipulator.
Example: On May 6, 2010, news about the Greek crisis in the EU began to be actively discussed. However, suddenly American indices fell by 10% in a matter of seconds, causing momentary panic. Within minutes, prices recovered as if nothing had happened.
The main goal of financial market participants, including cryptocurrency ones, is to make a profit. However, different players use different methods: some achieve their goals through research, trial and error, and long-term strategies, while others deliberately deceive investors to manipulate prices and make easy and quick profits.
For successful operation in the crypto market, it is important to be able to resist manipulations, rely on verified information, and conduct thorough analysis when making decisions.
$DOGE $BOME $MEME
