Bitcoin trading can be very profitable but it can also be very challenging especially when you consider that most people in this market do not have prior trading or investing experience. Then they step into this market where the big guys can use every dirty trick in the book without any fear of prosecution. Throughout the years, these market makers and whales have perfected their ways to prey on retail traders. Today, I'm going to show you how to combat that. So, let's get down to it.
Most people have a textbook approach to trading. So, when they see a breakout to the upside, they quickly assume that Bitcoin is about to turn bullish. That is not the case most of the time. Why is that you ask? Well, previously we used to trade against Bitcoin geeks and early adopters but now this is a whole other ball game. You are playing against people who are using every trick that banks and financial institutions use to prey on retail traders. If that weren't enough, they can push it to the limit because there is no law stopping them from doing that in this market.
It is therefore very important to understand the intent behind every move. It is no longer enough to just look at simple breakouts and a break above or below a support or resistance. The best part is that most of this trading activity is fueled by algorithms and bots that very frequently repeat the same fractals over and over. So, there is a way to take advantage of it if you play your cards right.
Learning Never Stops. If you liked this analysis, please give it a thumbs up and share it with others. Comment below with your thoughts and suggestions. Follow me for more. Good luck! :')
Your channel is one of the only ones where you share skill but yet also seem to see the bigger picture. Thanks
jlynch
⋅
Thanks for your analysis and talking us through the thinking behind the price action. What is your take on the COT Report: BITCOIN - CHICAGO MERCANTILE EXCHANGE non-reporting traders spike in net-long yesterday? Are trying to mislead us? or do you think they just expect another bullish week?
JoeR66
⋅
excellent work
mysteryfish
⋅
Jefe, You're the best and I really appreciate what you're doing to help traders do better against the market.
I may be overanalyzing, but as I study your video and watch how the breakouts occurred, I wonder if a lower TF might have actually revealed HH's and HL's following the second breakout, seeming to confirm the breakout before it dropped. Also, in some higher TF's, it looked almost like a "three bar play" was about to play out. So, I guess that leads me to my real question: How do you decide when a signal is relevant?
I ask because many signals occur only on a single TF, and it's easy to select a chart after the price action has occurred that shows where an obvious signal predicted the action. However, different TF's also can show conflicting signals. At times, these factors make useful TA seem nearly impossible. Zoom out, and just about any signal is eliminated. Zoom in, and there is too much noise.
Do you have any advice about how to simplify things so that an effective (with reasonable consistency) trading approach can be devised?