Those that truly have a grasp on how to trade Altcoins understand full and well that the AltMarkets are based ultimately on human psychology. The charts for each Coin are merely conversions of this human psychology into graphical form. Thus, having the ability to predict price movement for any coin, is similar to predicting human behaviour – something we’re all able to do
I believe that the human mind is more powerful than any rsi or fibonacci tool in analysing the implication of price action. In fact, the human mind is the world’s most superlative pattern recognition machine, therefore, we’re able to pick up on the simple fact that there are cycles in everything – the weather, ocean waves, and altcoins.
A consistent characteristic form, style, or method, as:
a. A composite of traits or features characteristic of an individual or a group: one’s pattern of behaviour.
Just like we are able to predict the actions or movements of friends and family based on the behaviour that they have exhibited in the past, It is in this same way that you can also anticipate the movement of any altcoin – simply by assessing its behaviour in the past.
In Crypto, most traders never get past the starting gate because they don’t use good selection criteria. They don’t know what to look for to find the most optimal trading opportunities – which is why they consistently buy into and sell out of positions at the wrong time and end up losing money. They aren’t tuned into the bigger picture.
You don’t need an assortment of smoke screens or voodoo priests to consistently win in Crypto. All you need is an ounce of common sense, patience and the ability to accurately exploit price patterns.
Most Coins behave uniquely when compared with others. This is due to the psychology of the people who are trading them. Different Coins have different batches of traders behind them, and so they behave differently. One Coin may have a habit of trending, whilst another coin will have a habit of staying range bound.
Once you begin to authentically tune into tracking price movement, you’ll notice that Altcoins repeat similar patterns over and over again and have set things that they do in both the short and long term time frames. Once you begin to take advantage of this, your odds of making money from Altcoins will skyrocket. In fact, for traders, this is one of the most potent means of pulling consistent returns from Crypto.
Are Price Patterns Important?
Most Altcoin traders never get past the starting gate because they don’t use good selection criteria. They don’t know what to look for to find the most optimal trades – which is why they consistently buy into positions at the wrong time and at the wrong stage of a price-cycle, which often results in back to back losses in the market.
Other traders have trouble making decisions to buy or sell. In other words, they are uncertain about what they should be looking at in order to select the strongest performers.
Here is a tip; in Crypto, you must become familiar with recognising price patterns.
The price pattern of an Altcoin reveals an assortment of key factors that are of utmost importance to traders looking to reach the highest level of consistent profitability.
Price Patterns are like cheat sheets that give you the most unfair advantage over the average market participant. They reveal all of the relevant price points within a price cycle that can be exploited, again and again, for continuous profit. Having a complete grasp on how to use these patterns will ensure that you;
1. Stay ahead of the curve
2. Remove the stress factor from trading
3. Tilt 90% of your activity in this market into the realm of consistent profitability.
Once you find out how to properly exploit these patterns, your trading will be as beneficial as having the master key to an ATM. This is essential to everyone who not only wants to make a living from Altcoins, but also for those who want to establish a continuous stream of revenue.
Price patterns reveal the All Time low price point for your coins, as well as the ALL time high. These patterns also highlight how long price moves tend to last – which is essential for getting the timing of your trades absolutely right.
What to look for
LONG TERM VIABILITY
When looking at a coins chart, you want to be looking at three main things
1. Trading Volume
2. Price movement (ALL Time)
Why is trading volume important? Trading volume reveals how much money has gone into or out of an Altcoin. The implication here is that whichever coin consistently attracts and maintains a sufficient level of trading volume is more predictable – simply because a constant stream of volume reveals that there is a hoard of traders who are constantly playing this coin for profit. A coin like this will have a much more obvious price patterns and can easily be exploited for continuous gains.
On the other hand, a coin that has only had staggered and choppy volume throughout its entire history isn’t a good bet and would rank very low on the profitability scale as price movement will be more erratic, thus less predictable.
Now that we have found a good altcoin that has managed to maintain a stream of consistent volume over a sustained period of time, we want to go ahead and asses the profitability scale of the coin – by looking at how it has performed in the past.
Looking at the ALL chart, you want to see that your coin has had multiple high percentage price hikes in the past. This goes back to what I mentioned earlier about using predictable behavioural patterns to your advantage.
Multiple spikes and a stream of consistent volume, indicates that there are traders who are constantly buying this coin every time the value declines which is a great indicator simply because people do not consistently throw money at something that isn’t lining their pockets with cash.
Lastly, and this is probably the most important. The Charts can be used to reveal whether or not an Altcoin has settled into a rhythm.
A coin that has settled into a rhythm will constantly exhibit the same behaviour over and over again.
For example, if a coin has climbed 100%, dropped by -70%, then climbed 100% and dropped -70% on numerous occasions – this is a behavioural pattern that makes a coin very predictable and easy to exploit for profit.
Now as I mentioned above, the best way to predict where an Altcoin is going to go price wise – is to look at the behaviour that it has exhibited in the past.
Is your coin following a rhythm?
Has it settled into a predictable pattern that can easily be exploited for continuous profit?
These elements are very crucial when planning your trades.
Too often people are swayed by short-term price movement, because they just don’t see the bigger picture. They just don’t understand that if you are approaching this market with a short-term mind frame, then you will only ever make pocket change.
The big money is made when you start to take a long term view. When you begin to look at the wider picture, short-term price movement begins to mean absolutely nothing – because it is only a very small piece of the complex puzzle that is the crypto currency market.
We all have habits and behavioural traits that we exhibit over and over again. So does the Crypto markets. This is what you have to be focused on. If something has happened twice before, then it will happen again. If you use this key piece of information and apply it to your own trading – you will start to really hit those high profitability trades.
Short-term plays are fine and dandy – if you are 100% confident that you know what you’re doing. If not, then you want to expand your horizons and begin to take advantage of the long term opportunities that exist in this market. Personally, my largest profits have come from rallies that unfolded over several a long-term timeframe. This is a very simple way to approach the market – especially if you’re looking for big wins, with low risk.