if i'm being honest i mostly learned from studying and trying to replicate charts from legends like @inversebrah, @LSDinmycoffee and @LomahCrypto
PATTERNS - a thread.
what do dairy products, shampoo and the very first couple all have in common?
the answer is lines, shapes...or rather patterns that traders use to predict where price is going in the future.
if i'm being honest i mostly learned from studying and trying to replicate charts from legends like @inversebrah, @LSDinmycoffee and @LomahCrypto
i've made TONS of mistakes in terms of bad, low effort and flat-out invalid patterns with my charts.
with analysis its very easy to make your charts look they way you *want* them to.
i guess you can have fun staying poor...anyways
there are countless patterns, and if i'm being honest you can almost "create your own" to suit your bias.
but for now, lets focus on three: Adam & Eve, Head & Shoulders and Wedges.
Adam & Eve is a reversal pattern and one of my favorites.
it's basically when you have a sharp reversal at a level, and then have price retest that level in a slower fashion.
price hits demand, bounces sharply, then curves in-and-out of the are it bounced from
A: price sharp down
B: price sharp up
C: price slow curve into area of demand
and it's that simple
https://t.co/VCvOLmhUH3
final update: adam & eve #BTC pic.twitter.com/yffLKl540C
— \u26a1\ufe0f TUNEZ 2000 \u26a1\ufe0f (@cryptunez) January 14, 2021
Head & Shoulders is another reversal pattern and a recent CT favorite as bitcoin looks to be printing one of a few timeframes...or is it?
a Head & Shoulders is a pattern that consists of 3 highs with the 1st & 3rd being the same height & lower than the 2nd
1: high
2: higher high
3: lower how (equal to 1st high)
this pattern signifies that the level of 1&3 is a level of supply, and anybody that bought in 2 got faked out and is now trapped.
A: high
B: higher high (buys trapped)
C: high (same level as first high)
and it's that simple.
wait...something doesn't look right here...more on this later
now the wedge is powerful and must be respected.
this pattern (of two lines converging) is easily my favorite and most actionable setup.
in fact, i'm hi-jacking my own thread with a triangle masterclass. READ ⬇️ https://t.co/MkpXp9GXGF
TRIANGLE MASTERCLASS - a thread.
— \u26a1\ufe0f TUNEZ 2000 \u26a1\ufe0f (@cryptunez) January 18, 2021
what's the simplest, most effective method of trading a market that trends as hard as cryptocurrencies?
trendlines.
one trendline on its own is strong, but when you put two together you quickly realize just how powerful this simple tool can be. pic.twitter.com/XiHUyn4SOH
well, I think with patterns we can use 2 variables to weight them
1. precision
2. size
okay so this one right here is why/how I think a lot of traders misuse patterns.
it's very easy to let your bias influence a chart, rather than the other way around.
let me add two trendlines to a chart and I can make it look however I'd like.
your analysis can become systematic and consistent.
you start seeing charts for what they are rather than what you want them to be
as we see we have a head & shoulders playing out.
precision - well, if our first and last high are supposed to be the same...and they aren't...then this pattern doesn't seem exactly "valid"
size - medium.
wait a second, is that the god triangle?
precision - seems precise...not forcing it.
size - large
but if we're being honest with ourselves it seems the bullish case is simpler, precise and less "forced"
plus, the pattern is larger. the higher the timeframe with your analysis, the more weight you give to it.
so long as bitcoin is below trendline B, we assume price is compressing
momentum is resetting...if bitcoin breaks above our op cost line we want to be long, if bitcoin breaks below our bias line we want to be short.
we want to long altcoins
https://t.co/wVOlZ82osi
So simple.. #bitcoin \U0001f602 go sideways pls pic.twitter.com/7aNlLLlxRm
— \u03fb \U0001f53a \U0001d524 \U0001d532 \U0001d52f \U0001d51e [\ua729] (@MagUraCrypto) January 17, 2021
it's only if you're able to separate your analysis from your emotions that you'll be able to do this effectively.
same goes for your trading.
for more tips, tricks and tutorials on how i've navigated these markets since 2017 please join my free public telegram channel for more!
see you in there 😎
https://t.co/DFOPJPdZKd
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MDZS is laden with buddhist references. As a South Asian person, and history buff, it is so interesting to see how Buddhism, which originated from India, migrated, flourished & changed in the context of China. Here's some research (🙏🏼 @starkjeon for CN insight + citations)
1. LWJ’s sword Bichen ‘is likely an abbreviation for the term 躲避红尘 (duǒ bì hóng chén), which can be translated as such: 躲避: shunning or hiding away from 红尘 (worldly affairs; which is a buddhist teaching.) (https://t.co/zF65W3roJe) (abbrev. TWX)
2. Sandu (三 毒), Jiang Cheng’s sword, refers to the three poisons (triviṣa) in Buddhism; desire (kāma-taṇhā), delusion (bhava-taṇhā) and hatred (vibhava-taṇhā).
These 3 poisons represent the roots of craving (tanha) and are the cause of Dukkha (suffering, pain) and thus result in rebirth.
Interesting that MXTX used this name for one of the characters who suffers, arguably, the worst of these three emotions.
3. The Qian kun purse “乾坤袋 (qián kūn dài) – can be called “Heaven and Earth” Pouch. In Buddhism, Maitreya (मैत्रेय) owns this to store items. It was believed that there was a mythical space inside the bag that could absorb the world.” (TWX)
1. LWJ’s sword Bichen ‘is likely an abbreviation for the term 躲避红尘 (duǒ bì hóng chén), which can be translated as such: 躲避: shunning or hiding away from 红尘 (worldly affairs; which is a buddhist teaching.) (https://t.co/zF65W3roJe) (abbrev. TWX)
2. Sandu (三 毒), Jiang Cheng’s sword, refers to the three poisons (triviṣa) in Buddhism; desire (kāma-taṇhā), delusion (bhava-taṇhā) and hatred (vibhava-taṇhā).
These 3 poisons represent the roots of craving (tanha) and are the cause of Dukkha (suffering, pain) and thus result in rebirth.
Interesting that MXTX used this name for one of the characters who suffers, arguably, the worst of these three emotions.
3. The Qian kun purse “乾坤袋 (qián kūn dài) – can be called “Heaven and Earth” Pouch. In Buddhism, Maitreya (मैत्रेय) owns this to store items. It was believed that there was a mythical space inside the bag that could absorb the world.” (TWX)
