Triangles, Waves and Lines - Oh My! Enough with the over analysis
Ever heard of the term KISS? Keep it Simple Stupid. I'm starting to think it should become the theme of crypto trading.
Daily Analysis from dozens of outlets
I get it, that is what the "analysts" job is, but seriously....
How many times can I hear ETH may turn bullish after breaking falling wedge on the 1 hour chart. I guess this comes in handy with day trades, but honestly a wedge pattern can pretty much drawn on any chart at any time.
Does it really tell us much? Does it work off of price points that have shown to be pivots before, prices that acted as support or resistance?
Most often the answer is no.
Hang in....my rant is about to add value
Don't get me wrong. I use triangle pattern. I draw support and resistance levels. I even pay attention to all the wave analysis that seems to come out daily to see if it lines up with my levels.
In the end, most if it is just noise.
Price and Volume drive the majority of everything.
Being able to recognize a trendline and draw support and resistance is one of the fundamentally easier things to learn that have the most value add.
This chart is from an article from a mainstream crypto publisher that will not be named....
It's a one-hour chart with a "falling wedge" that to me is useless. It is literally just something to talk about so they can produce an article.
The good part of it is they have the worthwhile support and resistance levels drawn. The first and third blue lines and both yellow lines are clear levels that can be used.
That falling wedge is a waste of time....if it "breaks out" there is the resistance level right above it. Which is what the upside focus/target should be. If it were to test the bottom of the wedge into the apex then it would just be testing the lower yellow line support.
Basically it is just noise on the chart. I guess seeing so much of it everyday led to a rant, oh well.
KEEP IT SIMPLE STUPID
Your mental sanity with thank you.
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I use to have paralysis by analysis years ago, and when I finally made the decision to eliminate most of the indicators from my chart, it was like seeing through a car window that was just cleaned off from spatted bugs from a cross country trip.
LOL. Truth!
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I love triangles