WARNING: This might not be a trend!
In the Technical and Chart Analysis, the most important step, which is sometime referred as your best friend, is spotting a TREND.
So once you find and confirm an up or down trend, things become easier for you. I am going to tell you a very simple and basic point, which is very vital and important in spotting the next trend you may wanna spot in a chart.
A trend is confirmed since no correction bigger than 38% of the previous move is seen. Whether a down or up trend, if a next move in the opposite direction measures bigger than 38% of the previous wave, you should doubt a trend has formed in that direction.
this is a sample, for an uptrend. as you see, corrections are smaller than 38%
and this is a sample, which shows a strong wave, follows by a strong opposite direction wave, which questions the previous rise was beginning of an uptrend.
I hope this small issue helps you better in future analyzing the charts :)
I also have posted this on my Publish account.
Amazing friend @honarparvar, very illustrated and well explained this lesson. Very useful to understand the crypto market.
thanks buddy, you are welcome
Hi @honarparvar
I believe in this analysis as well as in this frace of yours.
I believe that the market will rise again, there are many factors that can generate these changes, but the main one is stability, if investors see a good financial panorama where they can win.
maybe I'm missing something, i wasn't talking about any specific market at the moment
Nope, it wasn't you who missed something :)
Howdy dear @honarparvar.
I have always felt rejection towards the graphics. I don't like them because I don't understand them.
But with this very basic explanation and the support of the images you have managed to arouse my interest.
Thanks for this basic clip. I hope new ones come.
Your friend, Juan.
thanks buddy 🙏🏼 i will keep posting
With so many people getting interested with cryptos, it is best to have some basic understanding about chart analysis.
It might not be enough to be a crypto traded but will shape our opinion in a right way in terms of up and down movements of crypto prices.
Posted using Partiko iOS
sure, thanks for your comment
check this website: www.babypips.com
Welcome 🤝
Posted using Partiko iOS
Morning @honarparvar
Great read. It's surely difficult to spot the trend. Especially it must be very hard to figure out when trend is changing it's direction. Right?
However I'm not the biggest fan of TA. I think that we should only rely on results of it whenever market we're dealing with is fully matured and regulated.
Crypto isn't regulated. Crypto market isn't matured. Not to mention lack of liquidity and tons of uncontrolled "bad actors" still using this technology for their own purposes.
ps. why 38%?
Yours
Piotr
I am not sure how to understand TA ... I am trying to learn more about it, but What I believe more in is fundamentals
Ratios of 38,2% and 61,8% are related to Fibonacci series and "golden ratio". Many processes naturally tend to follow the golden ratio. Human perception is somewhat skewed to consider it "natural". Here in terms of market changes, you could consider these levels as general-opinion "low risk" and "high risk" market reaction levels, just because there are people on the other side of the gambling table. Other people also look at charts and numbers, and other people as a group, tend to act according to golden ratio as well. Before 38% there's low chance of panic and change in trend, after 62% there's much higher chance. Of course, on the market any thing can happen, and it is NOT a rule to follow, it's just some estimation or guideline to keep in mind.
Late thank you for your valuable comment @ookamisuuhaisha
Appreciate it a lot.
Yours, Piotr
The premise is....
Did not touch the whale / did not encounter political persecution / did not encounter economic struggle / etc.
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A nice and decent post .Easy to read and understand.Great content.All the best for your superb blogging and life.
thanks my friend 🙏🏼
Dear @homarparvar, our friend @juanmolina send me your post link and so i am looking and comment it.
Please do not mind but your theory is not confirm for our coin value, we started from 8 usd and now we are at 0,16, if you would not love this place you will not say it is a scam?
sorry this is completely irrelevant to my post, but np.
STEEM blockchain is not a scam, I believe. but steemit has poisoned with many negative activities and attitudes... I admit
Hello @honarparvar a very interesting approach and simple too. I was wondering if there is a simple way like this to learn technical analysis.
If you post I would surely learn as a eager student.
Just one Qs: How did you arrive at the 38% figure?
hi thanks for your kind comment.
for knowing more about the math behind 38% I recommend you to study Fibonacci numbers and fibo retracement
Very interesting.
Are these conclusions confirmed by statistics?
Which one?
this is a good question; maybe I have to put such info in a different post... thanks for asking