As the triangle has been broken, but the support been respected - the pattern has changed. We now have a descending triangle. The five wave correction has therefore come to an end, but there is still a chance of a break to the downside.
@cryptodoob, I do not trade based on hope, but on what I see - and from a technical perspective everything is being respected so far.
MFINITI
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@BudBronson, When do you predict the price increase will occur and how come everyone is predicting verge will have a massive increase based on the charts? What are the indicators? How the hell do I teach myself this stuff? Where do I start? What resources did you use to learn this stuff when you started out? Recommendations for beginners? Phew. I appreciate you taking the time to read.
BudBronson
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@MFINITI, 1) The best indicator to rely on is the price itself. Pure price action. This does not mean that it is necessarily a bad thing to use lagging indicators such as 'Stochastic' or 'RSI', BUT I'd recommend to never base your entries or exits only on these kind of indicators but rather use it as an additional confirmation to what the naked chart is telling you.
2) The reason why many people are predicting a solid increase in price is because it has formed a chart pattern, which is called 'symmetrical triangle' as you might have noticed on the left 'XVG/BTC' chart. A symmetrical triangle is usually a continuation pattern. As we're currently in an uptrend, chances are high that we can expect the triangle to break to the upside.
3) I've started with forex trading back in the beginning of 2015. As I had no mentor, I've learned everything myself through the web and some books. But the best teacher you'll have are your own mistakes - as you will learn from them. They will be costly but worth it. Spend literally 12 hours a day on average for 2 years to absorb everything that is related to technical analysis, psychology and trading in general. A thing that I have noticed is that MANY newbie traders who were attracted by this whole crypto boom are way to confident, as they think being a good trader is as easy as ABC. Back in 2015 I thought it too - but trust me it is not. So if I had to recommend just one thing to a new trader, it would be: Give it time and be persistent. All good things take time. As long as you don't give up on your way to becoming a profitable trader, you'll be massively rewarded after 1-3 years. Regarding resources, I'd recommend BABYPIPS.COM - They do have a focus on the forex market - which is great as in my opinion the forex market is the best market to really understand and refine your technical skills. The aspect of technical analysis remains mostly the same - no matter if you're trading the forex, stock or crypto market. Volume and order books are the two things that you don't have in the FX market, but the rest is mainly the same. Regarding books, I'd recommed "The handbook of technical analysis" by Mark Andrew Lim. This is more like a trading encyclopedia, but as a beginner you'll find a lot of beneficial stuff in it. Another good read is "The elliott wave principle" by Robert Prechter.
4) Here is the checklist I would have wished to have when I've started trading:
- don't underestimate the way to become a profitable trader. From my own experience and from other people I know, it takes usually 1-3 years, depending on how much you learn AND on how well you can control your emotions (fear/greed).
- don't quit your 9-5. I've went all in, thinking it would be easy money. It isn't.
- don't rely on someones trading signals. Most "experts" selling signals, are doing it because they can't make a living through trading. Signals won't make you a better trader, as you rely on someone's else knowledge or in most cases lack of knowledge. The key is to become independent. Mistakes are costly in this market, but they are absolutely necessary to become a good trader.
- If you're new to the world of crypto - don't try to time the market as you don't have the proper skillset for doing that. Rather invest in some fundamentally good coins and forget. Top 20 of coinmarketcap.com for example combined with your OWN in-depth research. Many techie words in the whitepapers, but you don't have to understand every single bit. Common sense is enough. Think of yourself as an angel investor and ask yourself 'Would I fund this company?' - be critical.
- Absorb every single bit about chart patterns, elliott waves (basics are fine for the beginning), candlestick patterns, how volume works in the crypto/stock market, bullish/bearish divergence, support and resistance.
- Spend some good time just analyzing charts. Do you recognize some patterns? A behaviour in price, etc.? Train your eyes and your gut feeling will become better and you'll see potential opportunities way quicker after a few weeks.
- Have some money to play with. You don't need much. $50-100 is fine. I'm talking about trading - not investing. As a newbie, you can still make huge gains in this market if you just invest and hold. But if you start to trade, be aware of the fact that you will most likely burn that money. Maybe not after the first time, or the second time - but chances are high that you'll wipe out your account a couple of times (especially in the forex market). I literally lost count on how many accounts I blew up. But that's great as the time will come when you'll make it all back and even more. Much more.
- there is no need to risk a huge amount of money. Many people think that they just need a large sum to make it, but if you are not profitable on a $100 account how the heck do you plan to be profitable on a 10k or 50k account?
- Always calculate your risk! It is crucial to know the exact amount in $ or percentage BEFORE you open a trade. Once you've entered the trade, stick to your stop-loss. No matter what.
- There is nothing wrong with being wrong. It's all about maths. If you lose 40% of your trades and win 60% on average, you're already profitable. If, for every dollar you lose, you'll make three dollars in profit - you'll be a rich man after a few years. Not even the best trader in the world is 100% right. If you win 60% of your trades that's fine. If you win 70% that's GREAT! Everything above 70% and you're part of the trading elite - a human ATM.
- Always calculate your risk! It is crucial to know the exact amount in $ or percentage BEFORE you open a trade. Once you've entered the trade, stick to your stop-loss. No matter what.
- There is nothing wrong with being wrong. It's all about maths. If you lose 40% of your trades and win 60% on average, you're already profitable. If, for every dollar you lose, you'll make three dollars in profit
you'll be a rich man after a few years. Not even the best trader in the world is 100% right. If you win 60% of your trades that's fine. If you win 70% that's GREAT! Everything above 70% and you're part of the trading elite - a human ATM.