First and forall, for members who don’t have any prior experience in crypto-investing, I highly suggest to read through my beginner documents (will be uploaded soon). This way you have a better understanding of what could thrive possible pumps (and dumps). After that, I suggest you don’t start trading with real money (or at least not with everything you’ve got). Start with a cryptocompare account or a crypto-app and “simulate” your decisions sticking to an initial budget. Observe your skills and be honest about it, otherwise you’ll end up paying fees on bad trades and eventually losing more money.
That being said, let’s start trading. The tools I use are:
[https://www.tradingview.com/chart/?symbol=BTCUSD]
[https://cryptowat.ch]
As you can see there’s a lot on screen,
1 .
Is the depth chart, where you can find limit orders placed by the market. This gives an indications of how supportive or not-supportive the market is on coins. On big pumps you’ll end up seeing big green buy walls as people want to buy. A cliff on the market price means a lot of people want to buy/sell the coin which will result in a rise or fall in value. It’s important to keep an eye on it, but don’t take this as the only indicator. Depth charts are an indication for willingness to pay, but as prices fluctuate, investors can cancel their buy orders, making look the depth vastly different.
2 .
Are the indicators, you can choose which ones you want to see on the bar on the upper side of the screen in the menu. Tradingview is free to use, you can make an account and use custom made indicators as well. Typical traders will use a combination of the ones stated above. More on this later.
3 .
Is the current coin rate, you can choose a relevant time frame in the left upper side corner. It’s important to keep an eye on the ‘bigger picture’ as well. 15 min intervals can look positive but you might be trading in a bearish chart and eventually the bars will drop rather rapidly. I suggest using 4H/6H as your best bet mid term.
For beginning traders it’s difficult to learn everything at once, a good trader needs knowledge about candlesticks patterns and technical indicators. If you don’t want to spend time on becoming such an expert, I suggest to give a look at the charts below. For each ticker, you can find technical analysis and candlestick patterns on a chosen timeframe. A summary of results will give you an indication whether or not it’s a good decision to place a buy or sell order. You can use it to train your own interpretations as well, exercise on your indicators and check if you conclude the same as the website (on the selected timeframe). I started trading with this and it’s one of the biggest tips I could give.
Update: Tradingview now offers this technical analysis feature too, so you might as well check it out!
Besides the technical indicators, candlestick patterns could be useful as well. A big remark is that they were used for forex, but the cryptos can behave irregularly and thus the indicators are not always on point. The website tries predicting some of the patterns and gives an overview of past patterns to give you an idea if the market is bullish (uptrending) or bearish (downtrending). Intuitively you can predict patterns as well by visual recognition. Search on google for candlestick patterns and you’ll find good examples. A buy order in a bullish market will in many cases result in good returns on investment. The image below is an example of some patterns:
I won’t reinvent the wheel here so I suggest you to google the following indicators yourselves. I provide some of the best links:
Last but not least I suggest learning the basic principles of microeconomics such as supply and demand and the effect on price speculations. You can find good video’s on the subject for a quick gothrough.
One of the best trading guidelines are market trends, who can predict the market is a rich man. Try to follow up your favorite coins by reading there blogs, announcements and communities. F.e. the last XRP pump could be predicted by Google trends: [https://www.coindesk.com/using-google-trends-detect-bitcoin-price-bubbles/]
Big announcements and events usually result in pumps so you can earn easy money by following up the market.
Thanks for the read, good luck trading ;)
Found this useful, made 300% return on investment? As this is my first post ever on this platform all forms of feedback are welcome. I hope you enjoyed the article, upvotes are welcome
