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Author Topic: Lesson 0: Fundamentals and terminologies of Trade Analysis and Crypto currencies  (Read 258 times)

digitalbayer

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Hey Guys,

Hope you are rich in btc or atleast trying to be!

This is your first lesson in trade analysis and here I'll discuss some basic principles and terminologies so that moving forward you understand what we are writing/discussing here and common short terms (mainly used in crypto currency trading and crypto twitter).

HODL: Apparently some drunk guy did some drunk post misspelling the word HOLD to express the idea of holding favourite crypto-currencies during market up and down, instead of selling it for miserable profit or in loss.

FOMO: Fear of missing out.

Bullish/Bull Run: Going up ; price increasing.

Bearish /Bear Run: Going down, price decreasing.

Long: Buy/purchase.

Short: Sell.

Whale: A person and a collection of traders with high amount of money to manipulate the market according to their will.

Stop Loss: Pre-set sell order in order to stop losing capital further. A risk-management startegy and a must for every new or vetern trader. For example if you buy a coin for 100 stoshi and expect the market to go up after your trade analysis of the coin that you will learn in this forum. But no body knows the future. In some circumstances the market can go down instead. In that case you want to minimize your loss. So you should put a stop-loss conditional order at 5% [recommended] or less loss that is 95 satoshi. So if market goes up you will take profit but if it goes down, you will minimize the risk and save your capital (very important).

Resistance: In a bar chart, Resistance is a upper price point where the selling is considered to be strong enough to prevent the price from rising further. Here is an example (collected from google):



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Break Out: When resistance [previous highs] is broken, the price usually shoots up, its called breakout. Its advised to buy as soon as resistance is broken [early breakout]. Here is an example -



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Breaking Down Resistance: If price momentum fails to break resistance [previous highs] then the price comes down to next support level and then attempt again to break the resistance later. It is advised to exit on breaking down of resistance. Here is an example -




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Support: Lower lows of the price points in a bar chart. Support is a lower price point where demand is strong enough to prevent the price from declining further. Here is an example -




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Breaking down support: If support price is broken then the market scenerio is bearish and price will decline further to create new lower low [new support].

Fakeout:







« Last Edit: December 23, 2017, 08:51:12 AM by digitalbayer »
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