Do you hate Technical Analysis or think it holds no weight in your day to day trading ideas? Think again. TA is not simply drawing lines and figuring out Fibonacci ratios to grow your investments. It serves trading bitcoin as Rambo served his country, often unloved but for sure a needed unsung hero for us to abuse…
Why use Technical Analysis in trading Bitcoin?
TA trading Bitcoin gives you structure as a trader to teach you how to objectively observe the market, if misused it can also serve to give you a subjective mindset that is no better then going to a casino and betting it all on RED. When you focus on an objective mindset of making a profit, you are forcing yourself in time to fit to those objectives. At first, it might it might seem like a daunting task as real knowledge is often elusive at best and at worst you can fall prey to the marketing efforts of bad characters looking only to take you for a ride. There is no better teacher then the charts and real TA gives you the structure you need to simply increase profits and reduce losses in time.
Are you a trader or fortune teller?
Real TA does not aim to predict the future, but more serves to balance the present. Many people wish to be able to gaze into the bitcoin crystal ball and tell you where prices are going. Just recently watching an unfortunate trader calling for a HYPER BULL run between June 23rd to July 7th in the low 7k level just before we crashed down to under 6k. We won’t mention the fortune tellers name as not to rub in his error of momentary thinking he was Miss Cleo Reincarnate. Prices can go up down sideways from any one point in time. Real TA serves to make you aware of what the possibilities are within the scope of the “What Is” not the what will be. Think of TA as the truth knife and how sharp it gives you it’s EDGE, that is all TA does and through the observation of what is there, serving to give you that edge in trading.
All trading is a matter of numbers.
Many people who dislike technical analysis do so because they dislike science and math as well. These people want quick and simple answers to most things and if they can’t get them, well they simply toss out the baby with the bathwater. In the end, the #s won’t care, there are teams of people who mainly hired by financial firms who are paid millions of dollars to bring these numbers to light, like most very complex math problems the solutions they provide are labor intensive and very expensive but so are the returns they make overall to not have. A very well paid technical analyst can be paid many times what a NASA engineer with similar skill sets can make, this can buy many pocket protectors to keep them happy. Do the numbers work? If not then why do those who use/know them pay so much and get such great returns from them? Look up Jim Simons of Renaissance Technologies if you wish to disagree…
What kind of people are telling you that Technical Analysis is dogsh*t?
Ok so you listened to Doug Polk or some other idiots online that does not even really know what TA really is to start with, example Polk is a card player and really does not have time to even understand what TA is, instead uses it to bash people promoting their course which the vast majority are utter crap and by people just looking to cash in on the hype because they are digital marketers. He produces videos to cause a BUZZ, kind of TMZ style that have no real substance, but people love talking smack/gossip girls. The average person knocking using technical analysis to trade cryptocurrencies like bitcoin, really don’t know anything about technical analysis to start with, nor are they ever likely to really take the time to learn what TA really is. They are the Al Bundy’s of the world who have all the answers but really no answers at all. It often is only to drive traffic to a topic they deem as having value or they are just naysaying and probably are the types that sit on the couch with their hands down their pants…
Learn TA first before you bash it.
Before you knock something to educate yourself on what it is exactly, nothing wrong with not believing in the validity of something, though first understand it. Knowledge is power, to talk about what you don’t know is like the people who say such things as “Cryptocurrencies are a scam.” If you think they sound stupid, well how stupid do the people sound to those who really know how to use technical analysis in trading bitcoin or other cryptos? There are many sources on this site and many free sources on the internet to explore what TA is, such as Babypips a good free starting point. Other groups that you can follow in the signals section of this website by many talented traders who have large followings for a reason.
In summary, TA is what you make it.
Good, Bad or Ugly. It will be up to you and how you choose to use it. If you choose to use it as a tool or like a tool, the charts will give you what you give them in the end. Due to the complexity of charting and TA trading cryptos, it is no easy task and there are many out there far too willing to sell you the promise land when in reality they just did researched it the day before to sell on their site. In some ways, I rather take the naysaying of a person like Polk to save people from spending money on useless courses that not only will never teach them real knowledge but mislead them into a circle jerk of miserable losses from everything technical analysis is not. It is not fortune telling, it is not a guarantees of future profits and mostly and I stress mostly it is not for those who do not have the time or effort to put in the painstaking hours staring at charts and #s of the most obscure relationships to see past the depths of invisible formless notions, that appear to be nothing more than figures of animal shapes drawn in the sky of a child’s mind.