Crypto4light

How to understand the market movement?

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BINANCE:BTCUSDT.P   Bitcoin / TetherUS PERPETUAL CONTRACT
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When you just open charts for the first time, the market movement seems chaotic: incomprehensible bars, lines, and so on remind us of a medical cardiogram. Here we have only one very important question: "How to understand the market movement?".

In fact, everything is simpler than it seems. Let's start with a classic trend move.
There are two camps on the market - "Bulls" and "Bears". Bulls - buy (raise the price values ​​up), and bears - sell (lower the price values ​​down).
Our task is to determine who is stronger in the market. This is the definition of the power of movement.
Market movement consists of a trend movement and a sideways movement. If the price lows and highs are higher than the previous ones, this may indicate the strength of the Bulls (uptrend), if the lows and highs are lower than the previous ones, the strength is on the side of the Bears (downtrend). When there are no clear higher/lower lows and highs then it is a sideways move.

Let's start from the most important.
There are two phases in a trend movement:
1) Main movement
2) Correction.

Let's take an upward movement as an example:
From the very beginning, you should have an understanding that the trend is your friend.
70-80% of trades should be opened strictly in the main direction of movement, and only 20-30% -
against it (trades that are opened in the direction of correction).
In the downward movement, everything is exactly the opposite.
In the case of lateral movement, the main factors for work are the boundaries of lateral movement.

Also, when working with trend movement, do not forget to look at the background timeframes.

What are timeframes in general and which ones are the main ones and which are the background ones?
Timeframe (tf) is a certain period of time for which a candle is formed.
The change of tf gives us the opportunity to look inside each candle.
So one daily candle (1D) contains six four-hour candles (4H), and one four-hour candle (4H) contains sixteen fifteen-minute candles (15M) and so on.
Each timeframe carries certain information for analysis. We can mark for ourselves the main timeframes:
1D 4H 1H 30m 15m 5m 1m
All other timeframes will act as intermediate (background) ones for us.

How to understand which timeframe is more important? 1D or all the same 1H?
In fact, there is no one important TF. As we pointed out earlier, each carries important information. Whether it is 5m or 1h, they are equally important for analysis.
There is only a sequence of analysis and trend definition.
From older to younger.
You must take into account all timeframes, carefully analyze each of them, not missing a single detail. Every factor you have should be "fractal" - displayed on lower TFs.
Do not rack your brains and do not look for “golden” information on the Internet “how to determine the trend”, just determine the highs and lows on the chart and everything will fall into place.
Also, the trend cannot be predicted. You can't think of yourself "Now the trend will begin" -
No! It is determined "by the fact" of its formation.

The optimal time for crypto trading is determined by the opening of stock trading sessions, as practice shows, this is a highly volatile time on the market. Within these trading sessions, there is a specific time that shows the main volatility at a distance. This time is the most successful for trading.

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