ChoCh is a change in order flow in the market which changes the trend and direction of price movements.
ChoCh gives a sign of a reversal which indicates a signal to take profits or open a trading position opposite to the previous position.
There are two types of ChoCh, namely Bullish ChoCh and Bearish ChoCh.
Bullish ChoCh is a situation where the trend in the market changes from bearish to bullish. Bullish ChoCh is marked by the price successfully breaking through the last Lower High (LH).
Bearish ChoCh is a situation where the trend in the market changes from bullish to bearish. Bearish ChoCh is characterized by the price successfully breaking through the last higher low (HL).
What effect will the halving have on the price of Bitcoin?
Bitcoin halving is an event where miners' rewards/profits are cut by 50% which ultimately causes a supply shock in Bitcoin, thereby increasing the market price of Bitcoin.
Historically, there has always been an increase in Bitcoin prices 1 year before the halving and 1 year after the halving.
However, there is a theory: The Diminishing Influence of Halvings, where the increase in each halving will decrease and the duration of the halving will become relatively longer.
The term smart money is definitely familiar to those of you who are financial market players. Often the topic and discussion about "smart money" comes to mind and makes you wonder, what is smart money?
Basically when we discuss "Smart Money", there are two underlying perspectives.
The first perspective is the perspective in investment: The term smart money in investment refers to those who manage large amounts of public funds. Mutual fund managers, institutional investors, traders on Wall Street, and other large fund managers in investments are called "smart money". They buy undervalued projects to sell when the price/valuation rises high.
Meanwhile, the second perspective is a perspective in trading: The term smart money in trading refers to the application of the concept used by "smart money" when trading where smart money tends to look for and collect liquidity from retail traders. Smart money uses the money they have to carry out "price manipulation" so that prices can move according to their wishes.
Smart money is a term for those who have the capacity to move and control the market with the capital they own. That's why smart money is like a "whale" while we retail traders are "small fish" trying to survive in the market.
Don't be afraid of smart money, we as retail traders must understand how they think and act, so that we can make a profit.
From the observations we made, the question "how long" to hold is very closely related to how long a narrative will occur.
Historically the duration of each narrative is 2-4 months. The minimum duration for a narrative to occur is two months and no narrative lasts more than four months.
The character of the crypto market is unpredictable and boom & bust (prices rise drastically followed by a significant decline).
Examples of narratives that were very hype related to previous technology (Metaverse & AI) only lasted 2 months, then the price experienced a correction back to the starting point.
Even though the duration of each narrative is very short, we cannot "timing the market" to know for sure when a narrative will occur. What we can do is anticipate that this will happen by making "periodic purchases" some time (months) before a narrative occurs. #Write2Earn #TradeNTell $BTC $SOL $ETH$BNB
The 60% rule is a guideline that we consider ideal before investing.
In accordance with the system that we have implemented, before making an investment decision, investors must pay attention to three types of research, namely narrative research, technical research, and fundamental research.
Narrative research plays a role of 50%.
Technical research plays a role of 30%.
Fundamental research plays a role of 20%.
Before making a decision to buy a coin, make sure that from all the aspects above our assessment is more than 60%. If it is less than 60% then the best step to take is not to invest.
The 60% rules provide complete and precise guidelines regarding decision making when investing. $SOL $ETH $BTC #Write2Earn #TradeNTell
Basically there are two types of crypto investors, namely risk takers and risk averse.
Risk takers refer to those who have a high risk tolerance. Those who tend to fall into this category are very brave in taking risks to obtain high profits.
Risk taker is related to the type of assets invested, portfolio size, and the amount of leverage used. Risk takers tend to be very comfortable investing in super risky assets with large portfolio sizes.
Meanwhile, risk averse are those who have a low risk tolerance. Those who fall into this category are more likely to want something that is "just safe."
Risk takers tend to invest in main market assets such as Bitcoin or Ethereum, sometimes also investing in big caps which have relatively limited downside compared to micro caps and low caps.
Risk taker and risk averse are psychological characteristics that cannot be changed or trained.
Imbalances are "imbalances" that exist in the market. Imbalances occur when there are market participants who are more dominant than others. Therefore, there are bullish imbalances and bearish imbalances.
Bullish imbalances are a situation where there are more buyers than sellers in the market which causes prices to increase.
Bearish imbalances are a situation where there are more sellers than buyers in the market which causes prices to fall.
Imbalances cause prices to "move" out of range, but in an efficient market, imbalances will always be closed by prices returning to the imbalance area.
Another term that describes imbalances is fair value gap (FVG) or liquidity void.
Next we will explain the application of trading using imbalances in the crypto market! $BTC #TradeNTell #Write2Earn
For friends who have capital under $5000, the most ideal way to optimize the growth of your portfolio is to FOCUS on one narrative when the market is shaping up.
With a minimal portfolio size, carrying out a "cast the net" strategy is less than ideal because your portfolio cannot grow optimally.
It would be better if we focused our capital on one narrative with 5 assets in it.
2 are assets that have large market capitalization and
3 is an asset that has a low market capitalization but has a very high upside potential.
This formation is ideal because if a certain narrative occurs in the market then the 2 "main assets" in that particular narrative are "almost certain" to always rise by a large percentage, while the 3 "wildcards" that you choose will "not necessarily increase", but if they do an increase will be able to increase the overall portfolio that you have very drastically.
The difficulty you may face when focusing on one narrative is that you have to have good accuracy and timing because you cannot invest in several narratives at once.
Everything starts small, believe that time will grow your portfolio as expected.
Revenge trading is a situation where we experience consecutive losses in trading but we tend to continue trading with a tendency to increase the position size.
Revenge trading occurs because of the poor risk and money management we have. Traders who carry out revenge trading tend to go all in and potentially lose all the assets they own because of the tendency to "keep adding" every time they lose a trade.
To avoid revenge trading, friends must understand:
- Always risk 1-3% of the portfolio for each trading position opened. - Understand that trading is a risky and dangerous activity so you must be careful from the start regarding all investment decisions made. - Always understand that trading is the same as business and no one wants a business to lose money, so always exercise caution before opening certain trading positions. - Understand that there is no such thing as "get rich quickly from trading" everything requires a process and the process will always take time.
Just like a basketball match or football match, there is also a rhythm in the market. Rhythm is the dynamic and rhythmic tempo in the market that creates a certain trend pattern that can be studied. The function of determining rhythm is to determine "trading bias", whether we want to place a long or short position in the market. Another function of knowing rhythm is to determine whether it is the right time to be passive or aggressive in the market.
Basically, rhythm is divided into two in the market, namely acceleration and deceleration.
Acceleration in a bullish market is a situation where there is strong momentum in the market. This momentum is realized by increasing purchasing volume and confidence in the market which is shown by the continued increase in asset prices. When the bullish market accelerates, it is ideal to open a buy/long trading position.
Meanwhile, deceleration in a bullish market is a situation where momentum in the market has begun to decline. In this situation, buyers who were previously very "excited" are now starting to get tired of pushing prices to continue to rise. In this situation, there is the potential for changes in order flow in the market, which was initially bullish to bearish. This situation is also called Change of Character (ChoCh) which shows the potential to take profit on buy/long positions and flipping to open sell/short positions.