RE: Let's discuss why I Do Not use indicators
Hi, first of all I would like to thank you for your trading lessons, they are really enlightening and I like your alternative approach. I have learned to look differently on many trading aspects. But there is one thing I doubt. Last panic sells have in my opinion much more to do with Chinese exchanges closure, than with whales manipulation. It is a bit to much of conspiracy theory in your view. On one hand you say that one trader can't move the market , on the other you say that big guys or guy cause panic sells to make smaller players sell cheap. I think that without any really bad news even the big guys can not cause a 40% drop of Bitcoin in 2 weeks. I prefer to believe that when there are bad news it is the sentiment what drives the market. Fear and greed. Once you learn to play opposite than your emotions tell you to do, you can call yourself a proffesional. Once again thanks for your work.
Consider this.. If you were one of these "whales" and really bad news came out for the coin you have been supporting at lets say 4,000.. After you remove your buy orders supporting that price, are you going to stop investing in that coin, or are you going to now support it lower? And after all the retail investors panic out of there coins and the price drops down to 3,000 where you have moved your buy orders, what will happen? Consider too that there are not only people panic selling all the way to 3,000 but there is also novice traders who are shorting the market all the way down.. Once some large players starts to support the price a domino effect happens.. The faster retail players start to buy along side the big money, and some of the shorters buy also (covering there shorts) but you gotta be fast because within a few minutes this wave of buying has shot up the price, and now everyone is buying and shorts are getting squeezed, and forced to cover fast.. it is the nature of the market to over extend a move and then panic to fix the overextention.. however it still comes down to big money, removing there 4,000 bids and replacing them with 3,000 bids.. They control the move in that they are picking the areas of support.
I agree, but I just wonder why not 2500 or 2000? They are wales so they could. They would earn even more. My point is that these support levels arent picked arbitrary, there is probably something behind it, and if I knew what, then I could use this knowledge.
Because 3000 is a psychological barrier for all traders, people would start buying there even without big money.