We caught some flack a few weeks ago recommending a short on bitcoin before the big correction. We also were asked how we “knew” XRP and LTC were going to have the lot big runs late last year, and why we were shorting XRP after the big run.
We even have posts pending right now asking why we would assume Bitcoin would go down (or up), and the response is this: technical analysis. We don’t “know” anything. We just read the chart, and it shows us the level of optimism/fear in a market. Those emotions follow visual patterns on charts.
TA can also include things like “psychological resistance.” For example, bitcoin may struggle at $9k and $10k price zones because people assume that is will struggle. Professionals will also assume resistance in price zones where a coin has previously struggled to grow further.
Some folks think TA is simply witchcraft, but there’s a reason professional traders have used it for a hundred years. The reason is that TA combined with a systematic approach of scaled buys and sells is predictably profitable. We created this group primarily to work on charts with friends and teach everyone how to be predictably profitable.
What are your thoughts on technical analysis? Are you consistently profitable when you trade?
Continue the discussion over on our Facebook group!
