it's NOT about technical analysis, It's phycology! (Higher TF)
In order to be good at the game of trading, you must understand why things happen the way they do.
How many times a coincidence can happen before it becomes mathematically impossible for it to be a coincidence?.
People use indicators to try to make sense of this game. The truth is no indicator can tell you what will happen, they can only tell you what has already happened. Trading is more about phycology than technical analysis.
Think hard about these questions before you trade:
- Why does the price moves the way it does?
- If the price is based on supply and demand then shouldn't bitcoin always go up, because of limited and shrinking supply?
- who are the decision-makers? (Market Makers)
- For you to sell something someone has to buy it, and for you to buy something someone has to sell it to you.
(if the majority are going Long, and minority are going short. Where is the difference coming from?)
For example:
$1B long
$750M Short
_
$250M <-- That's the difference that the Market Markes go short to balance out the orders.
The fear & greed indicator is the market maker's weapon against the retail/Banks/Finacial intitution.
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Happy Trading!