Dangers of using the BTC/STEEM pair for Technical Analysis
This is partially in response to @ozchatart's great post about TA, it's a good read and only 7 hours old so you can still give it a vote.
I've got 3 main concerns about technical analysis (TA) in this case
Changing Fundamentals
Steemit is still a start up and as such things are changing fast. A hack, price drops 30%. Increased daily account creation, price jumps 50%, and so on. News is moving the price, and at the stage Steemt is in, there is new news every day.
Bitcoin moves too
While bitcoin is fairly stable within the crypto world, I feel it is not stable enough for the use of TA. If I am looking at BTC/STEEM and see STEEM fall 5%, does that mean anything when it turns out btc raised 5% in value?
There is no STEEM/USD market yet but is there any software available to meld two graphs? i.e take BTC/USD and BTC/STEEM info and produce a STEEM/USD representation for TA.
Volume
Yesterday a single sale of 10,000 STEEM dropped the price over 10%. This can and will happen in a market with low volume, when one person who wants to sell 1% of their stake can drop the market by 10%, I feel TA's value is greatly diminished.
Conclusion
The reason I have invested in Steemit and, if the day comes, the reason I will divest from steemit is the fundamentals. In this case we have a smooth platform that is being embraced by an audience outside of cryptocurrency, that's enough to get me excited.
Why u add this post again?? Last time you add it 3 h ago...
It got no traction, so I figured it might of been because of the time. Not something I play to do regularly, in future I just won't post that early
Bravo. There are many traders who circumnavigate TA graphs as for me personally they cause "paralysis by analysis". You can have just a good model for prediction by researching the devs, code, value proposition, market and then the orders. Once you understand the product then for me, that trumps all the wiggly lines in the world.
"today, the share price week mostly be moving up, down and sideways repeatedly".
I am beginning to be convinced of the uses of TA, but for the reasons above not in the BTC/STEEM market
I like what I read here, I definitly agree that it's not all about TA, in order to get a complete view and perception of the market one has to folow ews evelopemnt, community TA, everything