Abstracted from my blog post. Read the Full Post at: http://alunacrypto.blogspot.nl/2014/03/how-to-bitcoin-altcoins-daytrading-fundamental-technical-analysis-profitable-trading-strategy.html. Follow me on Twitter for my latest Bitcoin/Altcoin trading advice @onemanatatime (https://twitter.com/onemanatatime). Fundamental Analysis
I believe that for an Altcoin to be worth anything at all, it MUST first have technical aspects which are built with the future in mind. This is what solely determines if a cryptocurrency has the potential for the mid to long term. Even with 5 new altcoins launching everyday, you barely see 1 a month that can last even the mid-term.
Then, after that I judge the coins based on 7 mediating factors; developers, community, branding/marketing, popularity/virality, novelty, infrastructure, and liquidity. For more about fundamental analysis and an explanation of these factors, read up on the first few sections in my previous post about picking and trading the next profitable altcoin. In this post, I will focus more on technical analysis and trading strategies instead.
With so many coins out there, I like to use these above factors to weed out all the weaker shitcoins, and focus on altcoins which are substantially different from others, and more importantly, provide more value than other cryptocurrencies. After which, I use Technical Analysis to judge entry/exit positions for trading them.
What else do you think makes a cryptocurrency fundamentally better than another, and more sustainable as a currency? Technical Analysis
Many will probably agree when I say that the Altcoins market is akin to the "penny stocks" of cryptocurrencies. In this sense, most altcoin markets have much lower liquidity, but have much higher volatility. Since there are over 200 different cryptocurrency markets to date, I prefer to narrow down my list of altcoins to a small handful, and buy under-valued coins or trade the breakouts. You're going to find it really tough to be watching more than 5 altcoins at the same time, so I highly suggest keeping your list small, and adapt your watchlist to the fast changing markets.
If you're new to technical analysis, here's a really good beginner's video on daytrading Penny Stocks, which also explains the basics of chart reading and an introduction to basic trading jargon that I'll be using throughout this post. The important concepts to take note of are resistances & supports, breakouts that coincide with high volume, and the general idea that "what goes up must come down". See video here: http://www.youtube.com/watch?v=HYK2a77TjvU
So after you get the basics sorted out, you should be ready to learn how to trade! I'm gonna break this intermediate technical analysis tutorial down into five main portions, and have compiled videos from other trading experts to give even beginners a better overall idea, and teach you all you need to know to devise your own Bitcoin & Altcoins trading strategy. 1. Top Down Analysis
Firstly, lets look at the top down analysis method of reading charts. I always begin by trying to understand the market from a bird eye's view. Compare both charts from a long term period (e.g. 1d) against one from a shorter period (e.g. 15m) to get a holistic view of the market. This will help give you a general perspective of market trends, while peaks & troughs give you an idea of market resistances & supports.
Use these basic resistance & support levels to judge entry/exit prices. In general, previous high and low points are new resistances or support depending on where the price is, and points where u can see big breakouts will be the new short term resistance/support. To get a better idea of what I mean, watch these videos by Jason Stapleton who explains top down analysis, resistances & supports, and structure. http://www.youtube.com/watch?v=M9yCc7lD21Q https://www.youtube.com/watch?v=tJmMU-8yicM 2. Retracements
The concept of retracements is, in my opinion, the most important one that any trading enthusiast must grasp in order to understand how the markets flow. In essence, a retracement is a temporary price movement against the established trend, and helps us understand that the markets move in wave patterns as highlighted by the Elliott Wave Theory. One way to look at it, as highlighted by this video below, is that most price-actions follow a pullback rule to fibonacci retracement levels (38%, 50%, 62%). http://www.youtube.com/watch?v=7VSWqM0jfIQ
The most important concept to take away from this is "what goes up must come down"; that price movements in one direction are always followed by retracements in the opposite direction. Of course, not all movements will follow the same pullbacks, and these levels should only be used as a guide. Here's another video: "Understanding Fibonacci retracement lines: https://www.youtube.com/watch?v=KzHjxPxGzMw
So the question then is, how will we know if this counter-movement price action is a retracement or a reversal? There is no way to say for certain...
Read the full post on my blog at: http://alunacrypto.blogspot.nl/2014/03/how-to-bitcoin-altcoins-daytrading-fundamental-technical-analysis-profitable-trading-strategy.html. 3. Trading on Volume
Another important concept you need to understand is that large price movements almost always coincide with high trading volume.
With this in mind, this is where the liquidity of an altcoin also comes into play; the higher the trade volume of an altcoin, the lower the spreads, and the more likely you will be able to make some profitable trades from it. In general, the trade volume is a good indicator of, and is proportional to the popularity of the altcoin at the current time.
Apart from the actual trading volume itself, another good indicator is the change in volume over time; if you realize that the trading volume of an altcoin has been steadily increasing over the last few days, it could be an indication that a big price movement is coming up. 4. Breakout Patterns
The last concept I want to share is breakout patterns. Although most people are familiar with this concept, many do not know how to profit from them. This is one of the best tools to use for planning your entry positions, while there are various ways to do so, which are highlighted by these first two videos below: https://www.youtube.com/watch?v=6YZ4ORz-UJ0 http://www.youtube.com/watch?v=3gN-6D8nH0E 5. Advanced Trading Strategies
Now comes the fun part: how can we take all that we've learnt so far and put into good use for trading Bitcoin/Altcoins? Here are some pointers for you:
- What we've learnt is more of a tool to make better entry and exit positions.
- Keep in mind trading the bitcoin & altcoin markets as you watch the rest of these more advanced videos, and I hope you'll be able to gain some insights to build up your Bitcoins & Altcoins trading strategy.
- Granted, forex & equities trading is much different from bitcoin or altcoin markets. However, the fundamentals are the same, and you should learn to draw lessons from the strategies talked about in the videos to supplement your bitcoin/altcoins trading strategy.
In the next videos, more advanced trading strategies and chart patterns will be shared. These strategies may seem very specific, but my goal is to give you better understanding of how these analysis tools are used, and to give you an idea of how different tools can be used to develop a single trading setup. The specifics are not important; what I hope to achieve is to open up your minds to new ideas, expand your trading knowledge, and ultimately encourage you to explore a diverse variety of trading strategies.
Read up more on some of the main ideas discussed:
- Fibonacci Analysis
- Fibonacci Extensions vs Retracements
- Elliott Wave Theory
- Harmonic moves/pattern
- Cryptocurrency Portfolio
- My Trading strategy
- More trading Tips
Read the full post on my blog at: http://alunacrypto.blogspot.nl/2014/03/how-to-bitcoin-altcoins-daytrading-fundamental-technical-analysis-profitable-trading-strategy.html. If you'd like to discuss any ideas or have burning questions, feel free to email me at alvinlee133(at)gmail.com or hit me up on twitter @onemanatatime.
P.S. If you're new here, make sure to check out my previous posts about Bitcoin & Altcoins daytrading: http://alunacrypto.blogspot.nl/2014/02/how-to-pick-trade-next-profitable-altcoin-bitcoin-daytrading.html http://alunacrypto.blogspot.nl/2014/01/beginners-guide-margin-trading-bitfinex-exchange.html http://alunacrypto.blogspot.nl/2014/01/embarking-on-my-bitcoin-trading-journey.html
P.P.S. If this post helped you, feel free to buy me a cup of coffee!
Cryptsy Trade Key: 9c1e289981a685bf0b8a4e48bc00b35eb1380afa
A Forex Trader's Review of Jason Stapleton 4x Trader's Live & Triple Threat Trading FX – Who are they? Is it a scam? Main menu. Skip to content. Home; About; About. This is an example of a WordPress page, you could edit this to put information about yourself or your site so readers know where you are coming from. You can create as many pages like this one or sub-pages as you like and manage ... I am a elementary school teacher and in my opinion Jason Stapleton and Akil are excellent Stokes teachers. I have previously bought courses from OLTA. I paid a lot of money for them and it was a lot of information jammed into a week class that would require you to spend more money for more training. It was more like a factory than a course. I blew an account, got away from trading and began ... Jason Stapleton is an American entrepreneur, speaker, and trusted marketing and brand consultant. He grew his first company, Trade Empowered, into a multi-million dollar brand as one of the largest and most well-respected trading education companies in the world. Six years after founding Trade Empowered, Jason started “The Jason Stapleton Program”, a podcast focused on economics and ... Here are two courses by Jason Stapleton - they are the complete works. 1) 4xtraderslive Pro Trader Bootcamp (1.81 GB) 2) Traders Workshop Forex Full Course (1.52 GB) I am currently seeding both torrents and the least I would expect from members who (download this) to seed for a week so that everyone can enjoy them. If I see leechers coming just downloading without seeding then I shall revert ... I HAVE been evicted from Jason's group. Beeing this said, i can only say that almost all that has been written before is true, he is NOT a liar, he is NOT a scammer; i can only say thank you Jason Stapleton, Thank you for all the knowledge you passed me on. I stumbled on Jason's Protrader course in one of his 2 week bootcamps he does twice a ... Nov 20, 2018 / Jason Stapleton. Share 1. Tweet. Pin. Share. 1 Shares. The subjects of influence and persuasion can be complicated. While the principles are easy enough to define, the application of those principles takes on multiple forms. The Best Book on Influence. Perhaps the most well-known book on influence was written by Robert Cialdini and is appropriately named Influence: The ... Jason_Stapleton I posted this several weeks ago when the market was trading around 1.3600 We hit the long entry a couple days ago. I've tried a couple times to buy up the EURUSD and it's been very weak. Jason Stapleton of Trade Empowered and various other outfits (The Syndicate, Forex Preview, TripleThreatTrading) that he has created and have attempted to attribute his “discoveries” as improvement upon my work. First of all, since I own the trademark on Harmonic Trading and all related terminology including all patterns, you have no authority to include any strategy within my domain. You ... Jason Stapleton describes his initial journey into Forex trading, while he was overseas. I can just imagine Jason working as a security guard in some miserable country, thinking to himself–“what in the hell am I going to do with my life!” We have all been through this. A career crossroad. Jason puts value on his videos by explaining word by word, with many examples what Scott Carney books say and other many things. I don't think he is a scammer, he will give you a correct vision of forex trading principles, and will teach you some systems that with a tweak can be profitable. I would either look at the morality of asking him 7 million dollars for using a book written with the ...
Everyone at tradeempowered are a blessing to me and I thank Jason Stapleton whom I have been following for 1 year now for creating the business that lead me to know you guys. Thank you, For the ... Most people settle for a life of mediocrity somewhere between total failure and their true potential. If you dream of more than an average life, then this is... Forex Trading: Trading Structure and Fibs NZDUSD - Duration: 16:59. ... The Trading Blog 058 - Jason Stapleton Tells You What It Takes To Be Successful In Trading - Duration: 14:28. Akil Stokes ... Skip navigation Sign in. Search Hey! Thanks for checking out my channel. What you'll find here are video designed to help you start and scale your business to 7 figures and beyond. Everythi... Jason Stapleton Tells you How to pick a Forex Broker - Duration: 18:42. Siyabonga Ngcobo Recommended for you. 18:42. Americans Prepare to Squander Their Stimulus Money: See What They're Spending ...