You can see this playing out even across smaller TFs for eachbicycle. This all has to do with market sentiment and trader psychology.
We humans try to find patterns in everything. Whales in the clouds, levels on the charts, even faces in the coffee . What you need to understand is why these things appear, there is no voodoo or mythological thinking behind such things. Often people are just trying to understand something the brain doesn’t. I’ve compiled several posts over the past 18 months, some of which have conversations up and down, back up again and then down. But that is not the point, the real value is for traders to come to these conclusions for themselves.
Many of my educational posts can be found through my profile here on Tradingview.
little importance –
The Simpsons, where It’s all about him This Wall Street cheat sheet and dig a little deeper into sentiment.
I also talked about why the masses flock to cryptocurrency.
When you start to put this together, you’ll quickly realize – that the larger players in the market simply understand the psychology that drives retail sentiment.
This post was It’s all about him Why I made the Rocket call – While the majority wanted to build up again, there were some clear signs that the Rocket deployment was starting. Ask yourself this, when adults sell – to whom do they sell? Retailing mostly well, when the adults are buying — again, who are they buying? Mostly hash well.
These types are nothing more than people. They wouldn’t change much, even if they were over 100 years old. Man hasn’t changed much in 100 years.
You can see these cycles in action, every step of the way – you can and some will say in the comments “You’re wrong, we’re at this point or another” You miss the point, I’m not trying to pick bottoms or tops out here post; I’m just educating the masses on why these things exist.
Take a look at the rally in Bitcoin’s early life;
These are the kids of tech, the true believers, and you didn’t see many VCs or larger “tech investors” until prices were over 1000. (Not Traders or Trade Institute) Not at this point, the dropdown menu is where the adults play to perfection.
This came soon after, and every man and his dog had heard it bitcoin From the postman or at the local tavern bar.
Naturally as it turned out – he jumped into the local top, got angry and angry. The rest is sold out – you guessed it, the big boys stock it!
When the rally is gone retail always seems to want “no risk” so they stop buying when the price goes up. Now it’s even more viral, all over social media! We’ve seen influencers call in $130k, $250k, $1m, even $3m! Buying it over 45k made sense to many who didn’t understand or were unwilling to learn.
Many went for it and left the bags red for a long time. To make matters worse, the larger operators can afford to sit and wait, and wait, and wait some more. Retail traders will leave out of fear, and incur losses every day they turn on the computer – the account is negative. People have literally gone overboard with this and in some cases – bought the top!
The longer the low ball period, the more uncertainty it will cause. Fear of this decline will swallow up, especially for those who have endured great losses. (I’ve heard people say things like “It’s just a loss if you sell”) All people want is for the pain to end and for this to be at an all time high. Right now, people are wondering about cryptocurrencies – regulators are closing in – especially after the whole FTX saga. Crowds shout “Banks suck, governments steal” The problem is that banks are structured to guarantee low fees and options to return stolen money. In an unregulated market – some will get burned!
Now, don’t get me wrong – I’m not a fan of governments or banks. But crypto needs to establish a good organizational foundation to realize its value properly.
Until then, we’ll likely find ourselves sitting somewhere between denial and depression at a Wall Street cheat sheet.
Have a great week everyone!
This idea does not constitute financial advice. For educational purposes only, our lead trader has over 20 years of experience in stocks, ETFs and forex. Therefore, each trading setup may have different holding times or entry or exit conditions and will differ from the post/idea shared here. You can use the information in this post to create your own trading plan for the discussed instrument. Trading involves risks; A high percentage of retail traders lose money. Please keep this in mind when entering a store. be cerfull.