Post
Topic
Board Trading Discussion
Re: Using Market Cap to Determine High & Low of Market
by
GreatArkansas
on 12/04/2020, 01:39:16 UTC
(....)
When you do trade then always stick out to those price tickers or candles on where you are trading but if you are a type of trading or investor that do only buy and hold for long term then this one wont really be that much as an issue but if you do make active or day trades then its a different matter.
Something like this, some traders more focus on price for analyzing the chart, but the market cap can still important in some point; as what @odolvlobo said "Market cap = price x money supply", we can use the market cap for more likely analyzing long term or higher time frames in charts.
With market cap also, we can also identify if the price of a particular coin was increasing or decreasing, if market cap is decreasing, probably the price or supply is decreasing also (based on the formula above) and vice versa when price or market cap is increasing.
So, in short,  for a trader like me;  Price really matters.