bitcoin. StockSharp

Slope and Retracement in technical analysis.

2022-11-03T09:37:58Z

💥 Learning to observe Slopes and Retracement A novice trader should have some basic knowledge in this regard as well. In order to use it as a tool to find a time to buy or sell. Be it the Forex, bitcoin, crypto market or the stock exchange in general, the same principles apply to technical analysis.

💥 Okay, even though we know the trend and the change in trend, and have identified preliminary trading signals, being overly confident might not always be beneficial. Reversals are crucial and highly valuable in technical analysis. This is because they refer to the slope correction, or what is called the "slope zz" of the trendline in Western terminology.

From Figure 1, it can be seen that the trend has many lines and the trend is adjusted to different angles. It is not that the trend has only one line and cannot be dragged by others. The rules for drawing the line There may be a variety of methods but the most popular should understand the rules of adaptation also known as retracement.

💥 In Figure 3, it can be seen that when the price reaches a certain level, for example, 100 euros, there is a decrease. At this level, the price should have the opportunity to rebound to the original trend at approximately 38%, 50%, or 61%. If the price drops after going up 100€, it should bounce back after going down 38€ (38%). If it keeps going down, the next support will be at 50€ (50%), and it should rebound. However, some technical analysts do not give as much importance to the 50% level as the 38% and 61% levels. It should not be more than 61€ (61%) because the chances of the trend changing from an uptrend to a downtrend are already very high. Therefore, one should prepare for the trend reversal.

💥This rule is applied to create a speed line (Figure 3), which is a trend line with its own set of rules. The height is divided into three parts from the point where the price is currently moving (1) to the base level where the starting point rests. This creates two trend lines: one showing the 38% level and the other showing the 61% level. This is just one example of optimizing the trend line.

💥The trend lines drawn have different slopes depending on the situation. However, every time the share price weakens and goes down to the support line from the trend line, it has rebounded at least once, also known as a rebound. Some people may use this as a moment to exit the market by selling their stocks. This is suitable if the trend is a downtrend. But if the trend is an uptrend or is about to change from a downtrend to an uptrend, anyone who exits the market may regret it because once they sell, the share price often surges higher than the selling price. Therefore, selling should be considered at the right time.

Advantages and Disadvantages of Technical Analysis

2022-10-27T16:57:34Z

Benefits of Technical Analysis

💥At this point, I would like to highlight the benefits of technical analysis, as many people perceive it solely as a means to play the stock market and generate substantial profits. However, the true benefits extend beyond that and include the following:

👉1. High Flexibility: Technical analysis can be applied to various financial markets, not just limited to stocks. It can be utilized in international money markets, interest rates, gold, Bitcoin, forex, cryptocurrencies, and more. In contrast, fundamental analysis may not easily translate across different markets. Additionally, technical analysis can be adjusted and tailored for use in different timeframes, whether short-term or long-term.

👉2. Time Efficiency: Technical analysis helps shorten the scope and duration of study. When time is limited or there are opportunity costs involved, technical analysis focuses on the net effect of the cause rather than delving into the root cause itself. This allows for quicker analysis and decision-making. Time never waits for anyone, and technical analysis acknowledges this reality.

👉3. Early Price Movements: Sometimes, price movements occur before fundamental analysts discover the underlying causes. Due to the global and interconnected nature of markets, there are numerous factors influencing price movements. While fundamental analysts may eventually identify the true causes, prices can be continuously affected by other factors. Traders who rely on money or stock trading cannot always wait for the real cause to be known as they may be at a disadvantage competing with other traders.

👉4. Time-saving Analysis: Technical analysis saves time by allowing analysis of a larger number of markets. Fundamental analysts may be limited to specializing in a particular business group due to time constraints and the abundance of data. In contrast, technical analysis enables us to examine price movements across various industries more efficiently and quickly. It provides a broader perspective and facilitates a better understanding of the overall picture.

👉5. Market Timing: Technical analysis helps determine the timing of market entry for stocks. It provides signals that aid in deciding when to enter and trade stocks or when it may be prudent to stay out of the market during a particular period.

💥In summary, technical analysis offers flexibility across markets, saves time, captures early price movements, analyzes a broader range of industries, and assists in market timing. It provides valuable insights for traders and investors to make informed decisions in their trading activities.

Some Disadvantages and Misconceptions about Technical Analysis

👉1. While technical analysis can help limit the scope and shorten analysis time, relying solely on the final outcome of an event may render the analysis inadequate. It can leave one vulnerable to stock manipulation, which can be mitigated to some extent by setting predetermined stop levels. It is crucial to have the courage to cut losses swiftly when faced with unexpected price movements in the market. Failure to do so may lead to a more significant problem, as the number of losses needing to be cut increases.

👉2. Utilizing technical analysis without comprehending the underlying concepts can be perilous. For instance, using a trend-following system in a sideways market may result in frequent trades with minimal profits or barely covering the broker's commissions. Therefore, if one wishes to be a technical analyst, it is essential to grasp the concepts of the tools to be employed and integrate them with the direction of the market movement.

👉3. Some investors mistakenly believe that knowing technical methods allows them to buy at the lowest price and sell at the highest price. However, in reality, no tool or technique can consistently achieve this. Technical tools primarily indicate when to enter or exit the market, as well as when there is confirmation of a potential trend change. However, by the time a real trend change is confirmed, one may have already missed the lowest or highest point. Nonetheless, technical analysis can help reduce the risk associated with incorrect entry and exit points. It is important to note that technical analysis does not guarantee the attainment of maximum profits.

💥In addition, the signals of technical analysis do not always have to be correct. No tool is 100% foolproof. Users of technical tools must be disciplined and accept when analysis yields inaccurate results. It is important to prepare for such situations by setting stop losses, which means admitting that you were wrong at a certain point and deciding to sell (or buy back, depending on the case).

Crypto index in crypto trading!

2020-09-29T13:33:22Z

Crypto trading is a type of trading and therefore we should admit that as well as in classic trading, crypto trading has its own index. [wink]

The index reflects the condition of market of crypto currencies, based on average market indicators. As in classic trading, the index in crypto trading formed on data from the most liquid tokens. The amount of taken tokens displayed in the title. If there’s a number 10, then it includes 10 different crypto currencies. The change of every of these tokens has a high effect on the index. [ninja]

The growth of the components of the index therefore the index will be rising. If the rate of crypto currencies is decreasing, then the index will be cheaper. [wink]
Index is kind of basket of several components. Crypto trader can choose which components he wants and monitor all of them. [happy]
You might need an index chart to analyse the market. If the index is most common, then the chart will be shown in the appropriate resource.
But what if the index of trader portfolio investment is individual? For creating such index, the Hydra program will be indispensable. Hydra can collect the volume of each assets, calculate, and build the necessary index, moreover you can use this index in other programs just by saving it in your desirable format.[love]
The gotten index can give you detailed and comprehensive data of the market condition. Furthermore, to work with index will give traders the opportunity to analyse the market perspective and any assets. The trader gets more effective system of crypto trading and therefore to get more benefits and reduce risk. [wink][love]

New crypto algorithms

2018-03-12T14:07:14Z

Hello, dear friend!

As you already know, we launched the second stage of crowdfunding for the crypto connectors on March 1st. This time, we did everything in a new way, including with regard to algorithms.

We will now provide algorithms without black boxes. All participants will be given strategies with source codes. To be the best in the market, unique settings are required for algorithms. Sometimes this is not possible without changing the code. We will be fully open to the supplied automation.

In this article, we describe the algorithms set up especially for you. This is our technical assignment. We specifically provide complete information BEFORE you choose to participate.

Synthetic arbitrage

This idea is similar to our main crypto robot, Edward. Synthetic arbitrage is built on a long combination of BTC/ETH/LTC//ETH/BTC. Connectors to exchanges, where there are similar coins, are set for the strategy, and then it independently chooses the convergence-divergence on the found pairs to track the arbitrage situation.

Edward-Crypto News
For those who use Edward-Crypto (напиши нам по указанным ниже контактам, если хочешь получить и эту стратегию). За счет значительно продвинутой модели торговли у существующего Эдварда, для него синтетический арбитраж будет возможен с опцией автопоиска нужных пар. Н(write to us at the contacts specified below if you want to get this strategy). Due to the significantly advanced trade model of the existing Edward, synthetic arbitrage will be possible for it with the option of auto-searching for the necessary pairs. For example, BTC/*/LTC/*/LTC/ETH/BTС. The program will automatically select an effective coin as pairs to search for arbitrage divergence. This option will be available only to users of Edward-Crypto!

Pump detector

This is a special automation, tracking the growth of cheap coins with cosmic returns in a few hours. The robot can either monitor and generate a signal or actively enter the position and exit it after a certain movement to take profit. The robot will track all coins on all available connections. Of course, we are talking about very cheap alts, where you can increase your deposits 10 times a day. The main advantage of the algorithm is to get out in time, but the robot, of course, will be faster than our hands.

Carrier

It's very simple - the transfer of money from one exchange to another by the robot. Auto selection of the cheapest coin for transferring, for example, BTC positions through intermediate conversion to cheaper cryptocurrency, i.e. Vertcoin, Ripple, etc.

Modularity
The key point behind all of the strategies being developed is modularity! All of our strategies are run in unlimited quantities within the same program. Edward-Crypto will also act with new strategies, all in one bundle. The Converter will work, for example, in a pair with arbitrage strategies, watching for an increase in positions on certain exchanges.

We hope that this ambitious change in the second round will be even more interesting for you!

Have any questions? E-mail us at info@stocksharp.com and we will be happy to answer any of your questions.
Do not put off the decision, just now one algorithm can be obtained for only 1000$, then the minimum investment will be doubled!!!

Are you ready?

BTC vs BTC. Arbitrage!

2017-11-08T02:39:55Z

Recently, interest in crypto currencies has grown in leaps and bounds. New exchanges have opened, hard forks, ICO, new crypto-currencies are being created and this whole movement generates a huge sea of opportunities.

One of these opportunities will be discussed in this short article.

Not so long ago, we launched the crowdfunding project to create new connectors to 10 crypto-exchanges (Bitfinex, Coinbase, Kraken, Poloniex, GDAX, Bittrex, Bithumb, HitBTC, OKCoin, Coincheck), while the two connectors to Wex.nz and Bitstamp are already implemented in our platform. This project would not be needed if the currencies were traded more centrally, but the number of exchanges already exceeded a few dozen. More connectors, more stable trading, and more entry points for arbitrage bitcoins and other popular crypto currency.

The target function of any exchange is to match buyers with sellers, but the price of an asset at which bidders are trying to make a deal can be different! Since the digital assets economy is just beginning, this difference can be very significant.

This fact gives rise to the possibility of so-called arbitrage - to buy assets when they are cheaper and sell when they are more expensive.

Let's see an example. The screenshots below of exchanges are further made at the same time.

GDAX BTC order book:

BTC quoting by $7 313,88 price.

For the same BTC on Wex.nz

Same BTC but price already $7 373
Another exchange - Poloniex:

BTC has a price of $7 323

No comments ;-)

Join our shared campaign of creating new connectors and we will provide you with technical tools for arbitrage between exchanges (and, consequently, earnings on this strategy). Particularly important, we will provide an automated trading robot, which has already been performing arbitrage trading with Bitcoin for almost a year.