Steemit Crypto Academy – Season 2 - Week 6 - Post for @stream4u
I have gone through professor @stream4u class. Hope my assignment post is one of the best.
Lets get started...
Reverse Strategy is a method of trade in which daily candlestick chart is considered. In this method traders check and consider on the movement of assets price difference whether in a long bullish or bearish. Usually this difference should be ±20% difference for this method of trading to be effective and accurate.
Usually it is observed that when price of an asset goes bearish or bullish in a movement of about ±20% it makes a reversal to the opposite direction after a 1 day period chart . Due to this knowledge, traders take advantage of it to make more profit out of it. This strategy doesn't guarantee traders of making profit, but with proper analysis and use of this this strategy there is high chance of making more profit than looses.
lets look at the practical analysis of this reverse strategy
The above diagram shows the parts of a candle stick which I will be using to explain what Reverse Strategy is.
This image above is a one day chart that shows the bullish and bearish reversal of BTC. Investors invest when a one day complete cycle of a bearish candle is closed. The next candle opened mostly takes a Bullish Reversal to the opposite direction so that they can make a profit and vice versa. But take note that candle fail, so when you make a reasonable amount of profit it’s advices to exit the trade.
Coingecko is an information data platform where traders can get information and updates about the cryptocurrency market. This platform provide traders with the right information so they can make the right decision into the market. Coingecko provide information such as rank, market cap, trading volume, live price chart and many more.
Coingecko provides detailed analytic information to a trader. Crypto currency is in a way that any mistake a trader makes will lead him to a huge money loss, so traders use this information to make the right decisions for themselves. Coingecko provides statistics of over 6,000 tokens, some of the statistics are contract address, real live price movement, authentic exchanges, market cap and more.
Below is the few way CoinGecko can help me in my trading:
CoinGecko News help me keep track on up to date information about the crypto world. Traders do not depend on only Technical analysis but also Sentimental analysis. Viral News on crypto assets can cause movement of prices.
Live Asset price and Market capitalization helps a trader to have some knowledge about a specific token.
CoinGecko helps traders to choose and trade with authentic exchanges. As now scam and fraud are rampant and difficult to trace with a decentralized exchange.
Contract address helps provide more information on what two parties have agree to do. So it serves as user reputation on the blockchain or an exchange
PORTFOLIO
CoinGecko has this feature to be able to keep track all your investment in crypto asset. All you need to do is to add your Asset and the amount of it you have. It has all these features so you can be on the app while you keep track of your asset in a different wallets. No need to keep switching apps
CURRENCY
This feature gives you the advantage to view your asset value in any currency you want to view it. Itt saves a trader time and stress to to have to convert between different currency. This feature does it all for you.
COMPARE COINS
This is a very impotent feature when a user want to compare two different coins side by side. These coins can be compared with each other with statistics like Price, market cap, Trading volume, rank and many more.
RECENTLY ADDED
This is a perfect feature to traders who like to trade in a new coin to invest in a long term. This feature shows the newly added coins into the market. This feature gives the user more information about the coin such as development activities, social activities and recent actives of the coin, not to forget it shows the price of the coin.
FILTER
This is a feature that helps in rearranging the coins base on DeFI, Stable coins, etc
CATEGORY
This feature groups coins base on the user preference. Coins can be arranged by their features such as rank, market cap, volume, etc
For the past 5 days BTC has take sudden dip down to almost half of its current price. BTC value right now is US$36,000 but 5 days ago before it started going in a bearish it was at US$51,302.10, this makes it almost half its price. Lets get to analyse the asset.
Why BTC?
in Recent days BTC has made a fast bearish in the market causing other Alt coins to make a significant fall as well. I believe the fall of BTC will make a lot of traders make more profit because it will surely rise again at least to its previous ever high price reached.
Sentimental Analysis:
As we all know Binance Exchange is one of most used exchange in the world. Majority of users used Binance because of its tight security reason. Just few days ago US Federal Agencies questions Binance asking for information on transactions even though there wasn't accusation of any wrong doing Source. I think for this reason it caused panic on some binance users to exit the market. After all most use Binance because of its security. This might have some affect to BTC and other alt coins going long bearish.
Just 2 days afterwards the market made about -10% of transactions of about $275 Billion in just 24 hours Source. Elon musk also replied to a tweet with "indeed" that said Tesla might drop off its BTC holding in the next few days. He did confirm Tesla might be exiting BTC. This are all factors that will make traders and Companies exit the market even when Tesla still holds.
Technical Analysis
With the help of the diagram above we can see BTC made a long bearish from $60,000 down to $36,000 in just 4 days. It hit the support and and the candle failed back to less than $36,0000 making a new candle to exactly $36,000.
As at now the market is not settled yet so it is very hard to predict how the market will go. Alot of traders will want to wait till the market makes all its corrections and settle before they get into the market. When traders start to buy the dip it will definitely rise the market again.
And again i don't think this is the right time to the Reverse Strategy because it seem in the market there is Panic exit from traders. So until the market settles before this strategy can be applied again
The price of Bitcoin still have the signals of going in bearish more with all these negative news around it. i would wait as an investor for like 2 to 3 more days and see how the market behaves. The possibility of the high price for the next 1 week is the middle resistance at US$42713.56 and i also doubt the price of BTC will go beyond US$3000.
Reverse Strategy works when the price difference is -20% or +20% to be effective. Note that entry point should be after the previous candle is closed and target should be the preclude candle opening point. When the market is not going in your favor make sure to stop loss at the close of the previous candle.Reverse strategy is a good strategy that helps a lot of traders to benefit little by little profit. I will call it my Small gain strategy.
Hi @roma078
Thank you for joining The Steemit Crypto Academy Courses and participated in the Homework Task.
Your Homework Task verification has been done by @Stream4u, hope you have enjoyed and learned something new.
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
#affable
Okay I thought the sources were enough
Hi @roma078
Sources are fine, but if you checked those courses closely so that you will see as they follow the same that I mentioned like "use the screenshot for it and give the source from where you know about it.".
This is a good thing that we learn different things every day.
So, while Blogging and Post, we can't just make it, here while making a blog/post we have to think as per the Readers/Visitors point of view as they are the only ones who read our Blog/Post, so for those and to feel them comfortably on our Blog/Post we have to give all details so that they no need to refer other things. Giving some incomplete things they will divert to others and find complete details.
While making a blog/post we have to make sure that I have given all details of what I mentioned in my blog/post, screenshots give some graphical view to the blog/post and users can directly read in that instead of clicking source and then read. After giving a Screenshot if they still want to read from original source that we provide a source after the screenshot.
This was just one Tip. 😬
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
#affable
I have fully understand stand that. Thank you very much 👏🏽