How Recognise Key patterns of price action.

Key patterns of price action. Below I will describe several key patterns, but on the diagrams you can see the analysis from a technical point of view.

And also please pay attention to the rules, which I do not advise to ignore.

The Cup with a handle pattern is formed according to the following logic:

- On an upward movement, the bulls cannot push through the next resistance level , a correction begins. It is undesirable that there were impulses during a rollback, a moderate downward movement should be observed;
-By basic rules, the bottom of the cup should be formed in the area of correction levels. A deeper rollback is allowed in modified models. In case of a deep correction after entering the market, the position is transferred to breakeven as soon as possible, the probability of the trend continuation is lower, it is better to insure;

Double bottom

It all starts with the formation of a new low on a downtrend, after which a rollback against the trend occurs.

Then, the price goes down again and rests against the previous low. And finally, after pushing off from this level, an upward movement begins, which breaks through the level of the previous local maximum. It is after the breakout of this level (confirmation line) that the final formation of the 'Double Bottom' occurs and you can start buying.
The same is with a reversal in an upward market. After the first high, the price should fall by at least 10%. Otherwise, it will mean that the bears are not strong enough.

Saucer

Let's start with the shape of the figure. Contrary to its name, the correct shape of the 'Saucer' figure rather resembles a bowl.

As you can see, the figure is formed by a smooth price movement along a parabolic trajectory. The first half of the figure (the left side of the saucer) is a smooth descent from the edge of the saucer to its bottom. The second half of the figure (the right side of the saucer) is the same smooth rise from the bottom to the edge. Ideally, the second half should be a mirror image of the first. And the bottom should in no case be sharp .

The classic 'Saucer' is formed, as a rule, on large timeframes from D1. But you can also find him on H1.

Flat base

In trading, the term flat means an area on the chart, without a clearly defined direction of price movement, that is, a trend. In other words, flat is the opposite of a trend.

Misc Rules
-all BP = 10 pips
-ideal prior uptrend >30%
-for wks abv avg vol: #up>#down
-up 20% for new base
- undercut base resets base count
- 66% or 3rd stage base fails
- 80% of 4th stage base fails
- in base bottom look for
- shakeout
- tight closes
- volume dryout
- accumulation

Top 5 tips for Crypto Noobs – getting started 📌

1. Storage of private Keys

Always, always, ALWAYS make a note of your private key. This is the key to your money, it is yours and no one can get access to it, like a combination to your own personal safe. Write it down, print it out, and store it somewhere only you know. If you forget the passwords to your wallet, this is your only backstop so LOOK AFTER It!

2. Choose the right exchange.

There are a lot of exchanges out there to choose from, each with their own benefit, each also with their own flaws. You can see recommendations of each on any number of google searches. The best exchanges are ones which are current and proven, ones which are sworn by leading crypto enthusiasts. Do your own research and choose which is the best for you.


"One of the leading and safer exchange today is Binance " --> Check Binance here. 

3. Store your crypto in a cold storage wallet.

Some people choose to keep their money on an exchange, which is fine if you are constantly trading. If not, there is no sense in keeping it on there. Would you leave your wallet on the table at a restaurant when you go to the toilet? No. So take your money back into your control and store it in a paper wallet, or ledger until you are ready to use it again. Many exchanges have been hacked, and all the crypto from peoples wallets stolen, don’t let this be you. 

Learn more about Cold Cryptocurrency Wallets..

4. Do your own research!

This one is extremely important. Whilst it is good to listen to top crypto influencers and enthusiasts to gain knowledge on what is happening in the market and what investments are out there, DO NOT TAKE THEIR RECOMMENDATIONS AS VERBATUM. 

They, like you, are speculators and have no idea what the performance of the advertised cryptocurrency will be. Take their suggestions, look into the cryptocurrency, do some research on the fundamentals, then make your decision.

5. Know when to take your profits.

Set yourself a point at which you are happy to take the profits of your spoils. Don’t, like so many others out there, expect your investment to 100x overnight. Set your own standards as to when you will sell, because crypto is a volatile game and large swings can happen almost instantaneously. 

Better to get out at 50% of profit rather than wait for 100% and instead see your investment plummet before you took out your money. One of the best ways to do this is by selling 50% when any coin doubles. This way you will have your principal amount safe.


Regards

14 Emotional States of Trader by Berzerk_invest

 14 Emotional States of Trader by Berzerk_invest

1.OPTIMISM.
It all starts with a positive outlook on the market situation, which leads the trader to open a trade. The trader is looking forward to future success.

2.EXCITATION.
The market starts moving in the predicted direction. The trader anticipates events and hopes that success is assured.

3.TREMBLING.
The market continues to move in the direction the trader needs, this is a moment of joyful fading. At this stage, the trader is completely confident in his trading system.

4.EUPHORIA.
The point of maximum financial risk. Investments turn into quick and easy profit. The trader completely ignores the risk.

5.ANXIETY.
Oh no, the market is turning! The first signs of movement not in favour of the trader appear. But he does not notice this and believes that the market will recover and the trend will continue.

6.NEGATION.
The expected market recovery did not happen. The trader does not accept what is happening and remains in the position.

7.FEAR.
Reality dictates its own rules, and the trader begins to realise that he is not as smart as he previously thought. Instead of confidence in success, thoughts begin to get confused.

8.DESPAIR.
At this point, all profits are lost. The trader had a chance to take profit, but he missed it. Not knowing how to proceed further, he is trying to do everything to return at least to the break-even point.

9.PANIC.
The most emotional period. At this stage, the trader feels his ignorance and helplessness and is completely at the mercy of the market. The mind is paralyzed, which sometimes leads to meaningless actions in the market.

10.SURRENDER.
The trader has reached the limit of patience and closes the position in order not to increase losses anymore.

11.DESPODENCY.
After exiting the market, the trader no longer has the slightest desire to conclude deals.

12.DEPRESSION.
The trader begins to blame himself for stupidity, for why he did not close the deal on time. Some choose the right path and begin to analyse what went wrong. True traders are born at this stage, studying past mistakes and drawing conclusions.

13.HOPE.
“I can still do it!” Eventually, the trader returns to the realisation that there are indeed cycles in the market. He begins to analyse new possibilities.

14.FAITH.
At this stage, the trader regains faith in his future in the market and starts trading again.