Hello all you Bitcoin holding Steemians, lets see how we can enterprise on a great buying opportunity.
I have taught a lot of people how to trade, including market makers at several firms. I also love showing people some tricks I have taught them to level the playing field. The crypto's are experiencing an awesome pull back, but how do you know when you should start buying more. Is the pull back over?
Many of you have heard the expression 'Never catch a falling knife' and I couldn't agree more! Let me show you a quick tool to get some perspective. Many of us look at short term charts such as the 1 minute, 5 minute or 15 min charts. These have a lot of noise in it and can frankly cause you to become a deer in the headlights.
When I was trading Dot Com stocks we often experienced moves like this and some thought, 'yup - this stock is done and gone forever...' However, they were often wrong! Many of those stocks with big moves need big pull backs. Just remove the noise and you can see it too...
Try using a 4 or 6 hour chart to eliminate the noise and get a better picture of when the true selling has dried up. Compare the A B C and D circles. Do you see the difference? We have a bit more selling to experience, so wait for more buying to come in before you start to catch this falling knife. Scale in slowly and wait for the tide to come back in and lift all boats!
There is no need to rush in, you are never going to catch the exact bottom. Let it wash out and if you miss a hundred points or so, then so what, at least you won't have to wring your hands when it continues its pull back.
I will be posting the Zero Point Lines again tonight to help coincide with the pullback so you brave traders can trade the intermittent short term trading opportunities.