Looking at an inverse chart flips the price axis, so up becomes down and vice versa.
This can theoretically help some traders detach from their inherent bullish or bearish bias and focus purely on price movements.
For example, a trader who is naturally more bullish might find it easier to identify potential shorting opportunities by looking for bullish signals on an inverse chart (which would translate to bearish signals on a regular chart).
Inverse charts can be a useful tool, to view them type 1/<symbol> in trading view. Just like the chart example: 1/BTC
As we can see with the chart, there is strong resistance highlighted by blue circles, this would have marked a good time to take profit in the market and look for lower entries. Opening a short would also have proved profitable at those points.
Note: Inverse charts are not perfect, they require technical analysis skills and employ zero fundamental analysis tools. It's simply another tool you can add to your trading toolbox.
This can theoretically help some traders detach from their inherent bullish or bearish bias and focus purely on price movements.
For example, a trader who is naturally more bullish might find it easier to identify potential shorting opportunities by looking for bullish signals on an inverse chart (which would translate to bearish signals on a regular chart).
Inverse charts can be a useful tool, to view them type 1/<symbol> in trading view. Just like the chart example: 1/BTC
As we can see with the chart, there is strong resistance highlighted by blue circles, this would have marked a good time to take profit in the market and look for lower entries. Opening a short would also have proved profitable at those points.
Note: Inverse charts are not perfect, they require technical analysis skills and employ zero fundamental analysis tools. It's simply another tool you can add to your trading toolbox.
Comment:
1/BTCUSD or 1/BTCUSDT alternative options