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The Fall of the Titans: Crypto Downtrend Unfolding on the 4hAre we witnessing the Fall of the Titans? Is crypto, the digital currency titan that has been dominating the financial landscape for over a decade now, showing signs of slowing down? The recent data on the 4h chart reveals an unfolding story - a Crypto Downtrend that may have significant implications for investors and enthusiasts alike. In this modern era of finance, cryptocurrencies have morphed from being an underground secret of the tech world into an open powerhouse that shapes financial markets globally. However, they have not been without their share of unpredictability and turbulence. The recent activity on the 4h chart, particularly, paints a picture of a potential shift in momentum - a Crypto Downtrend. Understanding The 4h Chart Before we delve into the specificities, it's crucial to understand what a 4h chart signifies. The 4h chart, as the name implies, represents price movements over 4-hour periods. Traders often use this intermediate timeframe to discern the medium-term trends in the crypto market, which allows them to plan their strategies accordingly. The 4h chart gives a more comprehensive view of market dynamics as compared to the shorter timeframes, without getting drowned in the long-term noise of the daily or weekly charts. Indicators of a Crypto Downtrend In crypto trading, several indicators suggest a potential downtrend. Key among them are lower highs and lower lows, which hint at a declining price momentum. Other indicators such as the moving averages, the Relative Strength Index (RSI), and the MACD can further support these observations. In the current scenario, the 4h chart shows a pattern of lower highs and lower lows, which is a tell-tale sign of a Crypto Downtrend. Additionally, the moving averages have seen a bearish crossover, while the RSI is hovering in the lower regions. These all point to a potential reversal of the bullish trend we've been experiencing. Impact of the Crypto Downtrend This potential Crypto Downtrend has significant implications. For one, it indicates a period of price correction, where the overvalued prices return to more realistic levels. While this could be a cause of worry for some investors, it could present an opportunity for others. For investors who have been waiting on the sidelines, this could be their chance to get in, to buy the dip. On the contrary, those who are heavily invested might want to brace themselves for potential losses, or consider hedging their investments. The Way Forward While the current observations from the 4h chart do point towards a Crypto Downtrend, it is essential to remember that the world of cryptocurrencies is known for its volatility. In the world of crypto, trends can reverse quickly and unexpectedly. Therefore, investors and traders should always stay vigilant and responsive to the changing market dynamics. Also, it's important to note that a downtrend isn't necessarily a bad thing. In fact, it can serve as a healthy correction in an otherwise overheated market, paving the way for sustainable growth in the long run. So, is this the fall of the digital titans, or merely a small bump in the road? Only time will tell. For now, though, it’s a good time to stay alert, plan your strategies, and tread with caution in the fascinating world of crypto. --------------------------- This article is for informational purposes only and does not constitute financial advice. Always do your research and consult with a professional before making any investment decisions. Crypto trading involves risk and is not suitable for all investors.
Short
by Titans_Trading
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One clear sign that sets good stocks apart from the restDividends are a fundamental source of returns for investors. Looking at an investment in the S&P 500 since 1930, 41% of the performance generated would have come from dividends1. This is almost half of the total returns. Having said that, there are many ways to invest in dividend-paying stocks: from focusing on companies with high past dividend yields, to companies with the capacity to grow their dividend in the future. At WisdomTree, we believe that high-quality, dividend-growing companies can offer investors a great long-term risk-return profile. The historical outperformance of dividend growers Dividends have generated a large portion of the returns for the market at large. Looking at a company level, the dividend policy is also a good indicator of performance. As illustrated in Figure 1, dividend-paying companies have outperformed non-dividend-paying companies by more than 5% annualised since the 1970s. Very interestingly, even inside dividend-paying companies, we can observe a difference between companies depending on the trajectory of their dividends. Companies that cut their dividend tend to post the worst performance. While companies that increase their dividend over time tend to do the best. The defensiveness of high-quality dividend payers Dividend paying companies and dividend growing companies also exhibit a very interesting risk profile. To assess their defensiveness, we look at the performance of different types of equities in different market regimes, as defined by the level of volatility during the month. To do so, in Figure 2, we split all the months since 2002 into five buckets from the less volatile months in the lowest quintile to the most volatile months in the highest quintile. It is clear that high-dividend stocks and, even more so, high-quality dividend growing stocks generate, on average, much outperformance during the most volatile months (the highest quintile). In other words, in volatile months, which also tend to be bad for equities, dividend-growing stocks outperform and defend investors' portfolios. It is worth noting that, as the volatility lowers, the outperformance of high-dividend stocks tends to lower, turning to underperformance. This is not the case for high-quality dividend growing companies that, in fact, continue to outperform, or at least match, the market. Overall, high-quality dividend growers are defensive and tend to outperform in highly uncertain, highly volatile markets, but they are also able to deliver outperformance and capture the upside in less negative markets. Where to find dividend growing companies Dividend growing companies can deliver long-term outperformance while protecting investment on the downside. But how can investors find those dividend growing companies? By definition, investors will know if a company is increasing its dividend only after the fact, once the dividend has been grown. Many investment strategies look back at past dividend payments to assess a company's potential for dividend growth. While this approach is intuitive, it is not very reactive; a company would be dubbed a dividend-growing company only when it has been one for multiple years. It is also risky as it does not consider what could change going forward. However, it is possible to have a more forward-looking view, focusing not on past dividend payers but more on future dividend payers through the formula below. Retention Ratio x ROE = Implied Dividend Growth Suppose a company earns $1 per share and pays a 25-cent dividend, leaving 75 cents in retained earnings. The retention ratio is 75%. Multiplying the retention ratio by the return on equity (ROE) would give you the amount of money left for future dividend payments, that is, the implied dividend growth. In other words, the implied dividend growth for a company is directly linked to the current profitability of the company. By focusing on highly profitable companies, it is possible to improve the potential for future dividend growth. Overall, by focusing on highly profitable, earnings-growing companies, such strategies are geared towards companies with the potential to outperform over the long term, reduce risk and grow their dividend more over the next few years. Sources 1 Source: Ned Davis Research Inc. 1 January 1930 to 31 December 2022. This material is prepared by WisdomTree and its affiliates and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date of production and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by WisdomTree, nor any affiliate, nor any of their officers, employees or agents. Reliance upon information in this material is at the sole discretion of the reader. Past performance is not a reliable indicator of future performance.
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by aneekaguptaWTE
HIGH/USDT Significant long moveAnalysis of Long Move for HIGH/USDT at Daily Chart-Time: The HIGH/USDT pair is currently experiencing a significant long move on the daily chart, indicating a strong bullish market sentiment. Traders may consider taking long positions, anticipating further price appreciation. Technical analysis using moving averages, such as the EMA (Exponential Moving Average), supports the presence of a bull market. The upward slope of the moving averages indicates positive momentum and potential buying opportunities for traders. The RSI (Relative Strength Index) can be used to confirm the bullish trend. An RSI reading above 50 suggests bullish sentiment and reinforces the notion of a long move for HIGH/USDT. Applying Fibonacci levels and Fibonacci retracement to the price action can help identify key support and resistance levels within the long move. Traders can look for price retracements to Fibonacci levels, such as 38.2% or 50%, as potential areas for adding to long positions. Volume analysis and the volume profile are important indicators of the strength of the long move. Increasing volume during upward price movements signifies higher demand and supports the bullish trend in HIGH/USDT. Breakouts above significant resistance levels and the formation of higher highs and higher lows indicate a sustained upward trend. Trendlines can be drawn to connect these higher lows, providing potential entry and exit points for long positions. Support levels act as price floors during pullbacks and corrections, offering opportunities for traders to enter or add to their long positions. Monitoring these support levels is crucial for managing risk and setting appropriate stop loss levels. When trading the HIGH/USDT pair, it is important to consider volatility, which can present both opportunities and risks. Traders should adjust their strategies accordingly and be prepared for potential price fluctuations. Liquidity is also essential, ensuring smooth execution of trades and minimizing slippage. In conclusion, the HIGH/USDT pair is currently in a long move at the daily chart-time, signaling a strong bullish market sentiment. Traders may consider long positions based on technical analysis, including moving averages, RSI, Fibonacci levels, and volume analysis. Monitoring support levels, managing risk, and accounting for volatility and liquidity are important factors for successful trading in this bullish market environment.
Long
by SafeCryptoSignals