If there is one huge wrong idea people usually have is that to profit, they must be the side of the majority of TRADERS.
No, you DIDN'T. You must be by the side of the majority of the VOLUME. If you + 100 traders with your huge 10000 USD accounts
are making buy pressure and only one whale with 2kk USD start shorting, you are rekt.
You also should know that whale's favourite sport is making money out of your fear and greed.
That being said, let's watch longs (line chart) and shorts (candles chart) and understand how you have been giving them all
your money. Let's observe 2 different points on this chart:
Orange (2018-3-6) price chart was unstoppable, it have just made a higher low, it was about to break last high, everybody was
hopeful that big old internet magic money was back, everybody looking for lambos on ebay, people can smell the success, they
feel like geniuses! They are buying SOOO cheap BITCOIN! Jusk 11k, it was 20k a couple of months ago! They are going to be rich!
BUT, whales see that as easy money opportunity. Look at BTCUSDLONGS, There is so many LONGS, so many stop-losses waiting to
be hitten, so many dreams waiting to be destroyed, why not to? Then suddenly a big sell wall appears on every single exchange,
little naive bulls notice it's not going to be easy, they keep pushing up, whales don't move a single penny, bulls start sweating,
they aren't going anywhere, and what if it start going down? The fear is knocking bull's doors, they stop buying, they start
pushing their stop-losses a little up (just in case, you know?) a whale make a tiny selling pressure and BAM, all stop-losses start
hitting each others, prices start falling sharply, LONGs getting closed, the guy that forgot the stop-loss realises he is losing everything,
he covers that stupid LONG. And feel so relieved for not being losing anymore.
Green (2018-4-12) there is this other guy who don't need stop-losses. He is so smart, he is never wrong, he is HODLing! This time he
was wrong, his LONG at 11k is still openned, it's already below 7k, price just attepted make a new high and failled miserably. He can't keep
that losing position, he will accept he was wrong (no matter how painful it is) and close that shitty position. Than he has a
really good idea: why not to short? There is this twitter guy he follows who is making so much money shorting all the way down.
That guy has so many followers, he can't be wrong. He makes some lines at the chart, look at the volumes, he is pretty sure: it's shorting
time! He shorts. What he didn't know: everybody is shorting too. Look at BTCUSDSHORTS, it's all time high, price is close to a support
(that maybe he failed drawing correctly and he thinks this support have been broken). That whale again look at charts, and decide:
why not LONGing here? When he does, our bear (former bull) can't even understand what happened, when he saw he was with a losing
position AGAIN! It was everything so fast, how could a price move that fast up?
This, my friends, is called long/short-covering rallies. When there is so many volume at one side, a fast squeeze at the opposite
side is just a matter of time. Now look at the right side of the BTCUSDSHORTS, shorts are increasing, are you shorting? Are you sure
that support got really broken? Did you draw it the right way? May it be another false breakout? Is there any reversal pattern?
Is there volume confirming that breakout? Don't be fooled, trade smart.
No, you DIDN'T. You must be by the side of the majority of the VOLUME. If you + 100 traders with your huge 10000 USD accounts
are making buy pressure and only one whale with 2kk USD start shorting, you are rekt.
You also should know that whale's favourite sport is making money out of your fear and greed.
That being said, let's watch longs (line chart) and shorts (candles chart) and understand how you have been giving them all
your money. Let's observe 2 different points on this chart:
Orange (2018-3-6) price chart was unstoppable, it have just made a higher low, it was about to break last high, everybody was
hopeful that big old internet magic money was back, everybody looking for lambos on ebay, people can smell the success, they
feel like geniuses! They are buying SOOO cheap BITCOIN! Jusk 11k, it was 20k a couple of months ago! They are going to be rich!
BUT, whales see that as easy money opportunity. Look at BTCUSDLONGS, There is so many LONGS, so many stop-losses waiting to
be hitten, so many dreams waiting to be destroyed, why not to? Then suddenly a big sell wall appears on every single exchange,
little naive bulls notice it's not going to be easy, they keep pushing up, whales don't move a single penny, bulls start sweating,
they aren't going anywhere, and what if it start going down? The fear is knocking bull's doors, they stop buying, they start
pushing their stop-losses a little up (just in case, you know?) a whale make a tiny selling pressure and BAM, all stop-losses start
hitting each others, prices start falling sharply, LONGs getting closed, the guy that forgot the stop-loss realises he is losing everything,
he covers that stupid LONG. And feel so relieved for not being losing anymore.
Green (2018-4-12) there is this other guy who don't need stop-losses. He is so smart, he is never wrong, he is HODLing! This time he
was wrong, his LONG at 11k is still openned, it's already below 7k, price just attepted make a new high and failled miserably. He can't keep
that losing position, he will accept he was wrong (no matter how painful it is) and close that shitty position. Than he has a
really good idea: why not to short? There is this twitter guy he follows who is making so much money shorting all the way down.
That guy has so many followers, he can't be wrong. He makes some lines at the chart, look at the volumes, he is pretty sure: it's shorting
time! He shorts. What he didn't know: everybody is shorting too. Look at BTCUSDSHORTS, it's all time high, price is close to a support
(that maybe he failed drawing correctly and he thinks this support have been broken). That whale again look at charts, and decide:
why not LONGing here? When he does, our bear (former bull) can't even understand what happened, when he saw he was with a losing
position AGAIN! It was everything so fast, how could a price move that fast up?
This, my friends, is called long/short-covering rallies. When there is so many volume at one side, a fast squeeze at the opposite
side is just a matter of time. Now look at the right side of the BTCUSDSHORTS, shorts are increasing, are you shorting? Are you sure
that support got really broken? Did you draw it the right way? May it be another false breakout? Is there any reversal pattern?
Is there volume confirming that breakout? Don't be fooled, trade smart.
