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LOOK! OUR AMAZING recommendations for NEO ICO Chinese Cryptocurrencies

chinese stocks 9 8

The above list is a nightmare for those cryptos and those who chase trades in them.

We just wanted to share with our followers and those interested in our newsletter how many of the above cryptos we saw as HIGH PROBABILITY bullish trades:

NONE

We do our best to find the highest potential for returns on crypto investments while keeping an equal priority on STAYING SAFE so you can be one of the 10% of traders / investors who will still be trading in 5 years (and hopefully reading our newsletter!)

So we’re going to add another accomplishment (imo) to our growing list since we started the newsletter in April 2017:

  • Called the 50% BTC crash days before it happened in May (saving $$ = Making money in our world) — our May posts are free — go review them for yourself.
  • Shared a high prob bullish pattern to reenter BTC at 2100
  • And just last month — this post (this was the tweet–more details on post) for XMR

XMR 100 trade 8 17

AND NOW WE ADD: ¬†Avoided losses and STRESS by keeping subscribers focused on SAFE incredibly high returning large cryptos as their main investments (90-95% of funds) during the last 2 months instead of chasing ICO’s and high risk cryptos that offered even better returns (which of course meant they also offered A LOT MORE RISK =NOT SAFE)

We’ll let you know in the next day or two if we can add even more accomplishemtns (Subs know what we mean ūüôā

To subscribe to cryptopatterns newsletter use the link on this page — in any case we wish you the best of luck in your trading/investing!

This site is for informational and entertainment purposes only and not in any way intended to be investment or trading advice.  You are 100% responsible for your financial decisions at all times.  It is highly recommended you DO NOT  make any investment or trading decisions depending upon what you read on this blog/newsletter!

NEO Real Time Update RED FLAG (Pennant) 9 5 17 9:10 PM EST

neo real time 9 5

NOTE:  Neo offers a great example of the benefits of the cryptopatterns newsletter. We want to show traders and investors the highest probability moves for key cryptocurrencies to help them STAY SAFE.

We don’t just hand you trades, we show you how to build a “trading strategy” that fits your objectives. ¬†We think it’s vital to educate traders/investors so they can develop the skills needed over time to avoid becoming one of the 90% (or more) who fail at trading or worse, blow out their trading accounts, or worse, lose more than they invest (sometimes everything) using high risk margin and futures leverage.

To learn more about pennant and flag patterns see link at end of post

We study a variety of patterns and indicators we’ve studied learned and used in 10 years of active trading practice. We know NOTHING WORKS EVERY TIME, but if you consider all the important factors, you can “build a case” to buy, sell or hodl that gives you an edge in the probability of that trade/investment succeeding.

As a real time example, we share in the chart above the current chart of the very popular crypto NEO — why? Because we know many traders are seriously considering buying at what feels like “can’t go lower” levels. ¬†Probabilities say it can, and we just wanted anyone interested to know so they can develop the most informed trading strategy possible.

If you’re interested in analysis like this on a daily basis and learning how markets really work (vs news and hype), you can subscribe to the cryptopatterns newsletter using the link on this page.

We hope you find this information / analysis useful and we wish you the best of luck in your trading/investing efforts. Most of all we hope you’ll STAY SAFE so, unlike most, ¬†you can be around for years to come and benefit from the untapped potential of this amazing crypto market.

This site is for informational and entertainment purposes only and not in any way intended to be investment or trading advice.  You are 100% responsible for your financial decisions at all times.  It is highly recommended you DO NOT  make any investment or trading decisions depending upon what you read on this blog/newsletter!

TO LEARN MORE: Pennant РInvestopedia  

or visit:  cryptopatterns basic educational post category

Divergences say BUY ETH NOW. Should you?

NOTE: ETH went up $8 since we began writing this post – that means divergences were right, right? ūüôā

Should you buy ETH right now? ¬†How do YOU decide? ¬†Price? Potential for the technology? Those are useful, but can they tell you go BUY NOW? ¬†We’ll show you another way to decide called divergence, and, to us, it says BUY ETH NOW.

cryptopatterns offers an educational newsletter. ¬†If that education can produce profitable trades all the better. ¬†So, we’re going to introduce divergences using a real potential trade for ETH. ¬†You can then decide if you agree or disagree with our assessment, add it to your own research and trading strategy (you have one, right?), and hopefully, make the best possible trading decision if you are interested in trading ETH.

START WITH THE DEFINITION

The point where two things split off from each other is called a divergence.

So if we’re going to trade ETH using divergences we want to find a pattern, indicator or SOMETHING that is not consistent or has “split off” from the way things normally look when we review an ETH chart.

MULTIPLE TYPES OF DIVERGENCES – FINDING “WHAT DOESN’T FIT”

cryptopatterns studies dozens of indicators to “build our case” for buying or selling a cryptocurrency. ¬†When you’ve studied thousands of charts over 10 years, it becomes easier to pick up when one or more pieces of the puzzle just doesn’t fit. ¬†Here are a few examples for our potential ETH Trade:

VOLUME DIVERGENCE

Volume divergence is when there is a split off between price and volume. ¬†Here’s the details on the current ETH chart:

eth vol divergence 8 13

So, does volume divergence say to BUY ETH NOW?  No, if anything, this volume divergence is a red flag to SELL ETH because

Price went UP

Volume went DOWN = BEARISH Volume Divergence

We want to see demand (volume) ¬†increase with price — something like this:

NEO vol 8 13

The bottom line is volume is generally not useful to tell you to BUY NOW — it’s a better tool for “confirmation” which is a different topic for a different post. ¬†We’re trying to decide if we should buy ETH now, so let’s look for other divergences.

PATTERN DIVERGENCE

This is when something happens that you don’t normally see in a proven price pattern — here’s an example from LTC that just happened yesterday:

LTC div 8 13

In this example, pattern divergence does not tell us to BUY LTC now, instead it was a red flag to sell LTC (which we shared with subs) and reassess. ¬†So pattern divergence has great use and could be a buy or sell signal, but if we review ETH’s chart above, we don’t see any pattern divergence, so we have to look for other clues.

INDICATOR DIVERGENCE

If you’re new to trading, you’re likely overwhelmed by the endless options to draw lines, channels, and do statistical analysis on charts using dozens of indicators offered by the exchange you trade on — don’t worry, we are too. ¬†Here’s a quick example from Bittrex Exchange:

bittrex indicators 8 13

You don’t have to understand every indicator to use one or more effectively. However, it is worth your time to learn a few of them and understand how to use them in your trading decisions. ¬†We’ll show you one for ETH we’ve used successfully called the MACD (read all about it and how it works HERE)¬†

ETH divergence 8 13

This set up where price is HIGHER and indicators are LOWER is called BULLISH DIVERGENCE.  Why bullish?

In order to correct this divergence one of two things has to happen:

  1. Price has to go HIGHER to pull the indicator higher  OR
  2. Price has to drop A LOT  (like to $214 range!)

Either of these moves will get price and indicator back “in sync” — which if you study charts you will see they are in sync most of the time.

TIME TO BUY ETH NOW? ¬†CAN’T TRADE ON DIVERGENCES ALONE!!!!

What is ETH’s indicator divergence telling us? ¬†It’s saying there’s a bullish edge in probabilities because that indicator is really low and there’s a better chance of it moving up than down right now–and what makes the MACD go up?

INCREASE IN PRICE = BUY ETH NOW!

WARNING: ¬†BEFORE YOU TRADE ANYTHING PLEASE UNDERSTAND: NOTHING WORKS EVERY TIME, AND WE ARE IN A VERY VOLATILE AND UNCERTAIN PHASE IN TODAY’S TRADING ENVIRONMENT.

As you can see above, divergences guarantee nothing — ETH could tank and wipe out the bullish divergence — and then there’s the setttings of the MACD which you can manipulate, then there’s the time frame, divergences often read differently on the 30 minute vs the 1 hour vs 2 hour vs 4 hour vs Daily charts. ¬†There’s a lot to learn about divergences, but they are an incredibly useful tool as a PART of an overall trading strategy.

That’s where so many other patterns, indicators and targets can be used as CONFIRMATION of divergence to make better trading decisions. ¬†And that’s EXACTLY what we do every day for our subscribers at

cryptopatterns newsletter

We use every type of divergence imaginable, watch all the patterns and indicators, and share our research so traders can see our take on the probabilities as well as LEARN HOW TO DO THEIR OWN — this offers a great edge in probabilities for trading and investing in their short term, intermediate term and long term cryptocurrency trades.

SOOOO — SHOULD YOU BUY ETH NOW?

Only you can decide, and even if divergences make it a screaming buy, the bigger question is WHAT IS YOUR TRADING STRATEGY? ¬†How long do you plan to hold? What’s your price target? What’s your exit strategy? ¬†Check our education category for more free posts on many of these subjects, and watch for more to come.

This site is for informational and entertainment purposes only and not in any way intended to be investment or trading advice.  You are 100% responsible for your financial decisions at all times.  It is highly recommended you DO NOT  make any investment or trading decisions depending upon what you read on this blog/newsletter!

Ignoring reality of Bitcoin Cash at Poloniex, GDAX / Coinbase may crash crypto market

bitcoin cash logo

TRUST.  The entire crypto market relies on it.  It will never reach its potential if trading exchanges cannot be trusted beyond doubt.

And yet, several major exchanges have decided to take a questionable approach of simply saying “we won’t recognize Bitcoin Cash”. (great chart here) In the world of cryptocurrency, that approach is not recognizing reality. ¬†The largest and by far most important cryptocurrency just executed a hard fork, and there’s simply no way to ignore it.

It would mean a lot to investors if they were notified by major exchanges such as Coinbase, GDAX and Poloniex ¬†specific details on how they plan on delivering Bitcoin Cash to holders of Bitcoin as of the fork. The current approach is not only questionable, it’s dangerous for market stability in general. ¬†Here are several reasons why:

  1. Markets hate uncertainty. The hard fork created enough FUD, there’s no possible benefit to exchanges so many traders rely on to add more (especially while others don’t).

2. There is already a major trust problem for exchanges.

GDAX has had multiple glitches, reports of Poloniex insolvency are circulating, and those are “good” exchanges compared to nightmares like BTC-e and many others. ¬†The biggest exchanges simply must build 100% confidence from investors or it will be increasingly hard to keep investors in the game and bring new and important institutional investors into the market no matter how much profit is possible or how low fees are.

 

3. Full access and disclosure of details of BTC and Bitcoin Cash are needed to make appropriate investment decisions.  

There’s already a clear value relationship between BTC and BCH on Kraken where BTC is dropping as BTC rises and vice verse. ¬†How can traders on any exchange (including Kraken) intelligently trade the most heavily traded crypto in the entire market without full access to all elements effecting BTC’s price?

BOTTOM LINE

This isn’t some fly by night crypto we’re talking about — this is BITCOIN — if exchanges create FUD by hodling back coins that belong to BTC owners — the frustration can easily spread to a complete mistrust of the crypto market (as if trading and investing isn’t hard enough in stable situations). ¬†Instead of recommending exchanges to business associates and friends, traders will continue to wonder how they’ll get screwed next.

The crypto market is simply too new and unstable to allow chaos at the top of the food chain.  ALL major exchanges need to step up do everything possible to ensure investors get full value for their BTC and have access to all price, chart and indicator information for Bitcoin and Bitcoin Cash in order to have maximum confidence in their investments, their research and to make informed investment decisions.

If some of the biggest exchanges keep ignoring this reality by waiting weeks or months to notify customers they have finally decided to award customers their Bitcoin Cash, this will create significant mistrust in those exchanges, no matter how honest their intentions.

More importantly, while these delays seem only related to certain exchanges regarding Bitcoin Cash, we think failing to resolve this matter quickly is important enough that it could spiral into a much bigger deal for all cryptocurrency investors no matter where you trade.

 

Disclosure:  Author has a VERY small position in BTC and Bitcoin Cash

This site is for educational and entertainment purposes only and not in any way intended to be investment or trading advice.  You are 100% responsible for your financial decisions at all times.  It is highly recommended you DO NOT  make any investment or trading decisions depending upon what you read on this blog/newsletter!  All information presented (c) 2017 JBP cons, inc.  All rights reserved.

We called the May BTC cryptocurrency crash but didn’t advise short it. Should you short now?

short margin call

Most won’t lose this much, but traders can (and do) lose more than they invest shorting the crypto market. ¬†Some lose everything they own….

The patterns are clear that trading in the current crypto market is dangerous, which can lead to huge upside or market crashes.  Our pattern analysis called the 50% crash in BTC  in May as you can see in this post:

BTC XRP Updates 5 26 17 9:10 AM Est

Is there more serious downside coming?  If so, does it make sense to short the crypto market?

To answer the first question — we’ll share that we don’t see the same patterns as the BTC market May crash but we are on “ETH Watch”. ¬†We will be¬†keeping subs updated daily on market conditions and hopefully be in front of big moves which patterns often are.

This post is focused on the second question, which is actually more important in the big picture than what the market is going to do today, this week or this month:

Should you consider shorting cryptocurrencies if you see big downside?

Good question — this post shares our reasons why we don’t see shorting as part of safe, high probability trading for most traders.

1) We’re working under the premise we’re in a LT Bull Market
Since cryptopatterns entire focus is SAFE high probability trading, shorting in a LT bull mkt reduces the probabilities for anything but ST and possibly IT shorts, and even then there can be significant surprises to the upside — for example BTC after it crashed from 2700 to 1500 shot up to nearly 3000–and even just a few days ago shooting up $700 when many gurus were screaming to short it.

trader suicied

2) Unlimited risk
Since many of our subscribers are new to trading ¬†we think the highest probability for staying with trading is staying safe and avoiding trades where you can lose more than you invest.¬† This is why we don’t encourage margin trading on the long side either, though we know experienced traders can certainly benefit from both shorting and margin trading.

shorting confusing

3) Shorting on most crypto exchanges is difficult and confusing.
We’ve been trading for over a decade and still can’t figure out some of the costs and procedures to short on most exchanges. ¬†and this relates to

4) What are you shorting against?

If you can only short one crypto against another it’s possible you can be very right and make no money (have had this experience personally). ¬†For example if you short ETH against BTC and both move down, you were right to short ETH but still made no money because the BTC you borrowed to short is now worth less as well.¬† If you can short against USDT or the USD or whatever your fiat currency is, then shorting can make sense.

So to summarize — we are not against shorting, but it doesn’t fit safe trading in the current crypto market because it’s more difficult to execute, takes more discipline (which many traders don’t have), is far more risky than only trading long (in a LT bull market and without margin trading), and is not evolved on many exchanges to be easy to make money and assure liquidity too (we watched multiple traders ¬†blow out large accounts when they couldn’t get their trades to execute on Poloniex so they could cover during XRP’s massive run up for example).

Finally, and perhaps most importantly:

There is plenty of money to be made on the long side with safe trading — and much higher prob of consistently doing it for years to come. ¬†Most traders don’t stay in the game for months much less years, and shorting the market is a big reason why.
cryptopatterns header

There may come a day when shorting makes more sense as platforms and shorting against fiat currencies becomes easier. ¬†Down the road, it’s also likely there will be a time when there is a clear edge to shorting the market consistently, and we believe our patterns and indicators will let us know.
Subscribe to cryptopatterns newsletter and we’ll show you how to find an edge to trade safely for the long-term in any market.
All content on blog/newsletter (c) 2017 jbp cons.  all rights reserved.