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RE: Interview with the developer of index that predicts crypto trend

in #interview5 years ago (edited)

I would like to try this tool soon, when I have enough time (and money) to practice some trading. I suppose that, at that moment, the tool will have improved more on its predictions. By now, I will remain a student.

I think that connection of computing power and the human eye is very important. As the developer said, this tool only analyzes technical trends, maybe with great precision. But in my view, for all I've studied about this, sentiment is the most important guide for the investor's decisions. And, for that, the fundamental analysis is needed.

Let me quote some phrases of Abe Cofnas from his book Planet Forex, Currency Trading in the Digital Age:

Fundamental analysis, or a fundamental view of currency markets, is widely misunderstood. It is not simply about the economic conditions facing a country. Fundamental analysis, when properly understood, contains sentiment analysis (...) In currency trading we can say that prices get their direction and strength of direction as they go through a field filled with fundamental expectation forces. Sentiment is the bridge and transmission channel, between long-term and short-term economic expectations that directly act upon the price (...) Sentiment is about both long-term and short-term expectations. Sentiment is how the market expresses emotions. Emotions are always about something and in currency markets emotions are generally about risk and uncertainty. Traders, therefore, need to diagnose what the market movements are about. This contrasts greatly with the current, dominant technical view of markets and currency pairs.

Yes... he is very opposed to the dominance of technical analysis, but I think it's worth reading... a mine of gold in financial knowledge.

PS. Thank you, as always, for recommending to me this article @crypto.piotr.

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Hi @spirajn, thank you for your comment. Those indexes are connected to the data extracted from most major crypto exchanges including deposits and withdrawals of specific cryptocurrencies and also the order books and the executed orders. You can give it a try for free, where you will see 1 week delayed data - so you can do the backtest for yourself if it is a good tool for you or not. Check it out here https://controlaltshifts.com

Thank you, @blockchainfo. I'll try it soon.

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