sell resistance moves along with prices. The higher the price soars, the greater the sell resistance becomes as more traders pile orders onto the sell side. Thus when prices drop sell resistance follows suit. Literally: What goes up, must come back down and then back up again. Its a very profitable cycle
This price action caused the 24hr trading volume to surge slightly, so I knew it would only be a matter of time before the rest of the market caught on and realised how low the resistance was in BOOM.
It wasnt long before my price alerts began to trigger, one after the other, as traders finally began to swarm the market buying through the sell orders I had placed hours before.
This brings me back to the point I had made earlier, skilled traders only make money because novice trades will always make the same mistakes.
In crypto it pays to be early.
SIDENOTE: Look at each market (coin) as a venue - a venue that has a max capacity. In our case the venues capacity, instead of human beings, can only be filled with BTC (trading volume). So, If a coin has already attracted a tremendous amount of volume, volume that is magnitudes above what the logical part of your brain would deem average levels then that particular market is filled (or close to being filled) to its maximum capacity. Thus the only thing left to happen is for the BTC to come back out of that market causing the value to plummet.
I totally get this Ryan. I think this is where I have been going wrong with my trading. What most people in crypto tend to say is "buy the dip and sell the rip" which really doesn't help at all.
I guess you are saying the same thing but explaining it in a more digestible way so that I can actually apply your method to my own way of trading.
Up until a few days ago I had been buying in when the volume was at it's highest and when buy support was at it's highest. Which i suppose is the opposite of what I am supposed to be doing
I started with cryptos last month and am only now realizing that the entire market is rigged and that the only way to truely succeed is to be a part of some larger entity which i guess is the whole "strength in numbers" concept.
thanks for these posts i shall be cramming in what i can and will hopefully be ready to join you on saturday