It's been years, even decades, since folks started making a living off reading charts, and just like life, charts evolve too. How many of you recall when support and resistance were the main focus? Remember those days when you could snag big profits just by waiting for the market to hit a trend line or a support/resistance level? But now, if you look closely, those levels are often just liquidity zones. Sure, people still consider them, but they don’t get the same priority anymore because liquidity has become the market's backbone. Many traders still cling to the old ways and focus on support and resistance, which just gets them stopped out and leads to unnecessary losses. I urge all traders reading this to realize that the market does change. With more big banks and companies diving into forex trading, our approach needs to adapt too. I’m convinced we’ll see even more shifts down the line.
Changes are inevitable and we do know that a market is composed of buyers and sellers on which its understandable that its part of the market into those who are market makers. They will be always having that advantage and come to think about that liquidity as a gasoline on which if ever there's that a sweep of liquidity then the price do shoots up into another external or internal liquidity. If you are that dealing up with markets whether on forex or on crypto then charting will be your best friend and there's no other way that you do deal up with market volatility but rather you do try to check those indicators.
If you've been trading up for so long then you can be able to detect or be able to observe out that there would be those changes in terms of behavior but still it do have that overall the same concept on how the market draws out liquidity and trying to get another liquidity on the other side.
from my experience and my recent trade which happened not too long ago, support and resistance are still working, although can't deny that sometime it feels like self fulfilling prophecy but if you see current chart of bitcoin you'd see support and resistance is still working.
of course you don't expect for it to always work, at some point there gonna be anomaly, like trump's announcement of tariff which broke all the support there is and just keep making the market going down since it's a big news.
but overall I don't really see any significant change toward the chart.
Market always reacts to news, and sometimes overreacts but if it has overreactions, it will have adjustments later. If you don't leverage your positions, you won't be liquidated and market will give you chance in its bounce or recovery to exit if you want, but with smaller loss.
Market reactions recent days by tariff effects are good chances for you experiencing how market works with news and psychology of participants. The famous advice is, "Be greedy when others are fearful and be fearful when others are greedy".
You can check this advice with Bitcoin price chart and fear and greed index.
https://www.bitcoinmagazinepro.com/charts/bitcoin-fear-and-greed-index/
It becomes very unpredictable already, in the morning you see price just dip more than 3K and in the evening price goes up again. It could be due to the big players coming into this market that support and resistance are already ignored by the price action.
Because they are saying the cycle is already changed, this could be the start of it where the supercycle will begin. And then there's this global trade war and conflicts everywhere.
But, since when it becomes predictable anyways? There are stability sometimes and maybe this is where we think it is predictable but there are still times that we get the unexpected. 3k is a big cut, though I think this usually happens on the lighter coins only but if in the evening the price can just recover, then I won't worry a lot but I can only use this pattern in fact to my advantage if ever it remains, this is why having another or a plan B is also a must.
Cryptos are so popular right now, so yeah that the number of big players have increased dramatically and the numbers are still expected to rise even further later down the road. This is the reason why the volatility have became much stronger too than ever.
It was never been that predictable in the first place or since this market had began on which charting and plotting out indicators will be the primary approach for those who do deal up with this volatile space. On just we do all know that this is also that highly reactive to news now and this is why traders do make use of fundamental analysis whenever there's news available but if there's none then you will be needing up that technical ways on how to determine the market trend.
Fear and greed index is one of tools to make use whether the market is on what level it is. You can be able to determine whether its an ideal entry for you to make or you do tend to sell out when
the market is already on overbought? When you are a trader then you will be able to determine on what are the steps that you should make out.It all matters on experience and skills that you have learnt along the way. Change is always there because there are several factors might that be changed up on how the price do move and affects out and make out some comparison.
In gold, I think it still respects the support and resistance because that is my entry and exit place after a breakout in an uptrend or downtrend.
It still works like others said; you don't need any fancy advanced skills to analyze the market. Just learn the basics about support and resistance and uptrend/downtrend, plus understanding candlesticks would be enough to make a profit in trading.
If you apply this to cryptocurrency, such as BTC, it still works, but the crypto market is changing; it appears that the entire system is changing; sometimes SMC works, sometimes it is just demand and supply, but it always changes.
You can not tell where it is going to bounce or reverse; unlike trading stocks or forex, it appears that within the brokers where you registered, there is an analyzer that people can follow, and it is not as volatile as cryptocurrency. The risk in crypto is due to volatility, and the price action keeps changing. That is why I think if you are an intraday then forex trading would be a good option.
Swing trading is fine in crypto; the only thing I saw that will work in crypto is to wait for patterns, because I saw the price. For example, in Bitcoin, if they saw a pattern, such as a bullish flag, it would react, and that is where I entered after a breakout. I believe it still works in cryptocurrency, but it does not always work, which is why you must master risk management if you want to stay in the market for a long time. You can only be profitable in the long run, so you must also be patient.
Before now, support and resistance are not the only strategy that is employed by many to trade the market, other strategies are in place for trading. You just have to chose from the one that works best for you and then work yourself up more to actually make it something you understand and when apply it in the market, and in turn gives you a good profit always. The market is already showing some changes and that cannot be denied and we have to adjust to those changes if we really want to be profitable at trading. Big players in the market will definitely affect the market trends and thats something that cannot be overlooked when trading too, they play a vital part to become more profitable at trading when observing this changes been caused in the market by this big traders.
I guess you are pointing at the market charts and how analysts has figured it as a tool to study the market!
See, the market charts are technical factors that shows the derivations of the market changes as the case may be in a volatile market of cryptocurrencies.
You can not undermine to sideline readings of the candle lines of you must be prosperous trader because it gives you ideal of what is possible to happen in the future. Even though it will not be perfected as speculations, of course it is good to understand your direction was wrong so you have to find a feasible option for your predictions.
If it is extremely greed for a while, especially for a long time, it's overbought signal.
If it is extremely fear for a long time, it's oversold signal.
If you know about the Bitcoin Fear and Greed index chart, that I shared above, and understand about the psychology of market cycle, you likely have good strategy for your investment, and by that you have good capital preparation for your Bitcoin accumulation when others are fearful or extremely fearful.
Psychology of market cycles.
Bitcoin Cheatsheet.
With everything that happens, I believe its right to have a strategy depending on the market. This makes me think that the market evolves because of the number of people that trade in it and also because more people are invested in terms of their capitalmaybe it is their whole life savings, or they know how to manage their risksand I think thats the most chaotic thing that makes the market unpredictable.
The best thing is to adapt to the current situation.
Bitcoin adoption growth changes with time, on chain transactions change with time, and trading volume on Bitcoin market changes with time as well. There is a thing doesn't change with time, psychology of people in this market. They react nearly same way in traditional markets to Bitcoin and cryptocurrency markets. Market makers and manipulators know about this well and exploit it successfully for their market manipulations.
Another article I would like to share about psycholog of market cycle.
The Psychological pitfalls of a market cycle.
You prioritized support and resistance lines because that was within the scope of your learning then and the most important thing you knew how to look out for, so you focused on it. Your knowledge broadened so you realized something known as liquidity and understood the concept behind it. You now know that the market is more complex than just support and resistance lines, so you think it has changed. The market has not changed, IMO; you have only gone deeper.
Or simply this is what you can be able to read up on textbooks or pdf online but of course these are always been that relevant too since price could really have that support and resistance. It is really just that not all the time that these levels could hold up or be able to break out whenever the price hits up those areas. Even though that technical indicators arent that precise but this will be your primary tool that you can make use to at least know on trying out to project on where prices could possibly go. It is much more better rather than on making up some entries or exits without anything to base on and thats why on the moment that you do deal up with this market then make it sure that you do learn technical and fundamental analysis on which this will be that relevant. It will be always significant when it comes into this aspect on which you cant be able to handle up this market with news alone.
When we do speak about those changes from past into present, then changes are inevitable but trying out to tell about having that differences about on how it do behaves when it comes to price movement then this is still something which is that the same because it was never been that predictable in the first place. You might be noticing out that there might be some differences but actually these are things that we cant be able to get a hold of, because there will be different factors that do affect overall movement on which we know that different people/institutions/groups/government are now that diving into this space on which means that prices will be that totally more even predictable on which there are those times that it could be potentially manipulative but well there's no way we can prove it out but its there.