Consolidation | Bitcointalksearch.org

Faisal2202

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Quote from: tranthidung on November 26, 2023, 09:32:27 AM

When you trade, it contains bigger risk than buy and hold as investment.

Consolidation or any phase of a market can cause you a loss or forced liquidation if you trade or use leverage, futures for your trading, risk is even bigger and bigger. So risk mainly comes from what you do, not what phase of the market.

There is no doubt in your words, because the event I am talking about $150+ million were liquidated at that time due to this long term breakage of consolidation toward bottom, and that's one of the many reasons that I don't do future anymore, it is so risky even for a pro (which I am not) due to the volatility of the market.

But at the current moment market is so predictable and almost every prediction on every coin is getting hit because of the bull run and money inflow in ALTs, this really looks promising but I am controlling my feelings to not get attracted by future trades.

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Quote from: Barikui1 on November 25, 2023, 03:18:49 AM

Not all experience traders as they claim can identify consolidation in the price chart, which to me it's a killer of our account.
Try not to be in the market when the market is consolidating, because there is a higher possibilities of you losing that trade.

It's one structure we traders look down on not knowing the danger it pose to our account, during consolidation in a higher timeframe like 4hr is the most dangerous because it can go either way.
If we must succeed in trading it very essential we know market structure so as to know when to enter and when to exit the market.

Having experience before starting trading is the first weapon against your dread and uncertainty. Because a person can just start anything he doesn't know about or have knowledge about,That's why many users here often encourage us to learn before trading and to give ourselves time to perform additional trading research. Because we all understand that trading is more dangerous than owning Bitcoin, we as biginners don't wait to start trading in order to enjoy a new experience. Even if we come to trade, there will be no problems. It is beneficial for us to remain calm when making decisions.

However It's simple to succumb to dread of missing something, make a snap decision, and make emotional decisions that can result in financial losses, which is not good at all, especially for biginners. The best part is that figuring out how much we can afford to invest without jeopardizing our financial security is a fantastic idea.

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I think by market structure you mean market direction, which refers to monitoring trading volumes near resistance and support points and then taking them as mechanisms for making decisions? The 4-hour time frame is not a sufficient period of time to make decisions regarding the market direction, and the trend can be reversed in it. Therefore, monitoring the time period with trading volumes will give better results.

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Quote from: Barikui1 on November 25, 2023, 03:18:49 AM

Not all experience traders as they claim can identify consolidation in the price chart, which to me it's a killer of our account.
Try not to be in the market when the market is consolidating, because there is a higher possibilities of you losing that trade.

Then what do you suggest to use to determine consolidation without relying on the chart? The chart shows the buy and sell history of all the trader which is enough evidence to prove something is consolidating by not moving the price due to balance buy and sell on the given timeframe.

Quote from: Barikui1 on November 25, 2023, 03:18:49 AM

It's one structure we traders look down on not knowing the danger it pose to our account, during consolidation in a higher timeframe like 4hr is the most dangerous because it can go either way.
If we must succeed in trading it very essential we know market structure so as to know when to enter and when to exit the market.

It’s still depends on the general trend that is in higher timeframe. 4hr time frame is only for short term analysis that’s why the result is unpredictable but if you look on higher timeframe, you will notice what will be the next movement on long term.

lombok

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Quote from: GreatArkansas on November 26, 2023, 06:37:45 PM

We are talking trading here so for me, so for me, all the risks you guys mentioned are normal when you are trading. That's why there's stop loss just incase your speculation or analysis went to the opposite side.
Just like in consolidation, which we all know if you say consolidation price is sideways or neutral, no pumps no dumps which for me, it's good to analyze here the next move.

Yes, this is a natural step for people who are careful and able to manage their trading with stop losses. It is really necessary for us to carry out analysis in the Consolidation Area so that we can know at least the direction of the market, whether it will experience a continuation of the trend or a trend reversal. If we have a position that is still open, stop loss is very important so that there is no loss even though we were initially profitable 😅

Quote from: tbct_mt2 on November 26, 2023, 10:04:32 PM

Cut loss can be applied for investment because when your investment goes wrong, you must analyze it carefully. Sometimes you have to make hard decisions to cut loss. It is so important if the investment position is with altcoin because you will lose more with altcoins. No guarantee with altcoins that if you strongly hold those altcoins, you will have a price to exit with a draw or will lose all money with them.

Very precise. Sometimes decisions like this really need to be implemented. This is an investment discipline so that huge losses do not occur due to investment consequences. Especially if you dream with altcoins. Because altcoins are more volatile compared to Bitcoin.

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There is no single rule for the market, and since the cryptocurrency market is still in the growth phase, it is impossible to determine the price trend in a range of less than 1 month. All you can do is give price range predictions and hope that your prediction is accurate, but Bitcoin leads in a recurring pattern in the long term. This recurring pattern may continue for 10 or 20 years, and until that time, short-term trading will be a bet and not based on technical analysis. However, technical analysis may help improve and enhance profits or at least reduce losses.

tbct_mt2

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Quote from: michellee on November 26, 2023, 10:46:13 PM

Most traders start entering the market when the market looks to increase. There are still many who are afraid because they are left behind to buy and take advantage of market movements. They don't take advantage of buying potential coins when the price is low.

Because they join the market when it increases or nearly touches the all time high, they join it because of FOMO, they will easily shake their hands when FOMO turn to Panic, fear, uncertainty.

It's a natural reaction of all human and it repeats as a market cycle. Investing or trading, they must understand The psychology of market cycle. It will help them to understand about the market cycle and will understand more about news they read. Like why at this period, such news are appearing more than previous period. News are used to affect their psychology and decisions.

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Most traders start entering the market when the market looks to increase. There are still many who are afraid because they are left behind to buy and take advantage of market movements. They don't take advantage of buying potential coins when the price is low.

For example, when the price of Bitcoin decreased and finally reached $15k-$17k. People tend to be afraid to enter the market and start buying Bitcoin. But when the price starts to increase and often moves quickly, they start to panic. They immediately buy in a hurry and hope that in the next minute, they can see the price increase very high. But the reality is not like that.

That is what often causes traders to experience losses. When prices move up, it is not guaranteed that they will stay up. It could be that the price increases quite a bit and then decreases further. That is why we have to analyze market conditions and situations so we can find the time to enter the market. Don't be triggered by FOMO. You decide when you enter the market.

tbct_mt2

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Quote from: lombok on November 26, 2023, 10:59:37 AM

Basically what you say is the truth of Bitcoin investment. Investing is the best way to make a profit and not be affected by potentially detrimental price movements as long as you don't sell your Bitcoin.

Cut loss can be applied for investment because when your investment goes wrong, you must analyze it carefully. Sometimes you have to make hard decisions to cut loss. It is so important if the investment position is with altcoin because you will lose more with altcoins. No guarantee with altcoins that if you strongly hold those altcoins, you will have a price to exit with a draw or will lose all money with them.

Quote from: GreatArkansas on November 26, 2023, 06:37:45 PM

We are talking trading here so for me, so for me, all the risks you guys mentioned are normal when you are trading. That's why there's stop loss just incase your speculation or analysis went to the opposite side.

I understand you knew about it well because you have your topic for it.
One of the Best Weapons in Trading. It is about Stop loss order. Images are broken by imgur.com, may you help newbies by upload images again, please. It will be more helpful if newbies can see images in the thread.

GreatArkansas

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Quote from: lombok on November 26, 2023, 10:59:37 AM

Quote from: tbct_mt2 on November 25, 2023, 04:43:03 AM

The market can not kill you and your account. You only lose your money if you gamble with your money in this volatile market. Gambling with trading (spot trading), higher gambling level with Margin trading and Futures trading.
~snip~

Basically what you say is the truth of Bitcoin investment. Investing is the best way to make a profit and not be affected by potentially detrimental price movements as long as you don't sell your Bitcoin.

Leverage or futures trading has very large risks that can bankrupt all the assets we own. Because every movement that occurs in the market if it is not in the direction of our position can lead to a margin call. This is very possible because we ourselves know that Bitcoin movements are very capable of going wild.

We are talking trading here so for me, so for me, all the risks you guys mentioned are normal when you are trading. That's why there's stop loss just incase your speculation or analysis went to the opposite side.
Just like in consolidation, which we all know if you say consolidation price is sideways or neutral, no pumps no dumps which for me, it's good to analyze here the next move.

jeraldskie11

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When consolidation occur, it means that the market is indecision. But it's an advantage for you if you know how to identify a market structure. In the market structure, there are four phases; accumulation, advancing, distribution, and declining. The price consolidate only when it's in the accumulation and distribution phase. We expect that after a consolidation possible advancing phase is the next or declining phase. It's not too difficult to identify a market because you can study it, but it's not 100% accurate. If you know how to read market structure you can anticipate what will be next move of the price.

lombok

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Quote from: tbct_mt2 on November 25, 2023, 04:43:03 AM

The market can not kill you and your account. You only lose your money if you gamble with your money in this volatile market. Gambling with trading (spot trading), higher gambling level with Margin trading and Futures trading.
~snip~

Basically what you say is the truth of Bitcoin investment. Investing is the best way to make a profit and not be affected by potentially detrimental price movements as long as you don't sell your Bitcoin.

Leverage or futures trading has very large risks that can bankrupt all the assets we own. Because every movement that occurs in the market if it is not in the direction of our position can lead to a margin call. This is very possible because we ourselves know that Bitcoin movements are very capable of going wild.

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Quote from: Faisal2202 on November 26, 2023, 01:19:16 AM

Then I realized it had a plan and followed it, and you OP saying consolidation is risky and I pretty much agree with you if I even consider the existence of consolidation otherwise I will say the sideways movement of BTC is risky for swing traders especially the ones doing futures

When you trade, it contains bigger risk than buy and hold as investment.

Consolidation or any phase of a market can cause you a loss or forced liquidation if you trade or use leverage, futures for your trading, risk is even bigger and bigger. So risk mainly comes from what you do, not what phase of the market.

Quote from: cryptoaddictchie on November 26, 2023, 08:45:12 AM

Consolidation can be seen on chart and based on its pattern. Im bit confuse on how to kill an account you mean maybe the portfolio right? If you are trading futures then theres money as well in consolidation as some might put on short order and keep it yhe stroke while knowing its down phase. Well not all can recognize that movement consistently but there are eyes whom really awesome to take that into account.

Account killing is with trading, not with a portfolio for investment. With an investment, storing money on exchange is risky too and the reminder is not do that.

We can not predict the market so trading is risky, trading with higher risk types like margin and futures will bring risk to a higher level. I lost money through Margin so if any newbie asks me, is it good to do margin trading, I will say directly no. Not only in consolidation phase or any phase.

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Quote from: Barikui1 on November 25, 2023, 03:18:49 AM

Not all experience traders as they claim can identify consolidation in the price chart, which to me it's a killer of our account.
Try not to be in the market when the market is consolidating, because there is a higher possibilities of you losing that trade.

Consolidation can be seen on chart and based on its pattern. Im bit confuse on how to kill an account you mean maybe the portfolio right? If you are trading futures then theres money as well in consolidation as some might put on short order and keep it yhe stroke while knowing its down phase. Well not all can recognize that movement consistently but there are eyes whom really awesome to take that into account.

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Understanding market structure is important for successful cryptocurrency trading. Experience does not always guarantee the ability to spot consolidation on a price chart, which can be risky. Avoiding trades during consolidation reduces the likelihood of losses. It is especially important to pay attention to consolidation on higher time frames in order to make informed trading decisions.

Faisal2202

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You are right, I recently watched a video of Cottoncandy (that was in one of his playlists for noob traders) and there he said there is nothing like consolidation in the crypto market. Either market looks like going side ways but it's not he said the market is always doing what it has to and always moving up and down and always has some plan. When I heard that the last consolidation of BTC which lasted for many days and after which the market was dumped, came to my mind and it confirmed his words that the market always had its plans.

Because at that time, the reason for the dump was not being found some were saying, that spacX sold the remaining BTC and blah blah. But after some time an OG member of BTT shared it was due to the liquidity problem that BTC dumped after remaining in a consolidation state.

Then I realized it had a plan and followed it, and you OP saying consolidation is risky and I pretty much agree with you if I even consider the existence of consolidation otherwise I will say the sideways movement of BTC is risky for swing traders especially the ones doing futures

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Quote from: Barikui1 on November 25, 2023, 03:18:49 AM

Not all experience traders as they claim can identify consolidation in the price chart, which to me it's a killer of our account.
Try not to be in the market when the market is consolidating, because there is a higher possibilities of you losing that trade.

Hmm, How does consolidation kill the account? OP no one can kill your account except for your own, don't make any entries where you are not certain about the outcomes, and don't let your account be used as a gamble on any trade.

Most people can trace out the consolidating market but today, everyone can as most people follow others, In the social media age every analyst shares his perspective from time to time, so indication is easier. To service in the consolidating market better broaden your perspective to the long term (Consolida) and reduce your position sizes. As you are not certain so why are you playing or would say gambling?

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Quote from: Barikui1 on November 25, 2023, 03:18:49 AM

Understanding and identifying market structure is one of the major key we traders must have in other to succeed in the crypto market.

In as much as most traders claim to be experience, they are still lagging behind because they were never trained in the craft.

Not all experience traders as they claim can identify consolidation in the price chart, which to me it's a killer of our account.
Try not to be in the market when the market is consolidating, because there is a higher possibilities of you losing that trade.

It's one structure we traders look down on not knowing the danger it pose to our account, during consolidation in a higher timeframe like 4hr is the most dangerous because it can go either way.
If we must succeed in trading it very essential we know market structure so as to know when to enter and when to exit the market.

Not only knowing what consolidation is or market structure, trust me many don't even know when we have a strong trend in the market, tho the market seems to range more than having clear trend which is another killer of account. And so to say many still don't know which type of trader they are.

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There are some things the OP is missing, consolidation is easy to know in the market, and this is obvious when the market is moving up and down without a definitive trend. Even as it is, some traders would still trade and make money in that condition. Now, are you saying because of consolidation, traders who have the tendency to trade and make money since their strategy permits it should miss out? I guess No. Instead of your advice, I rather advise traders to be sure of their experience in the market and trade what they know without deviations.

If you are a scalper, scalp the market well and make your money, if you are a short-term trader, do it well, and the same goes for the long-term traders. This advice is important because when the market seems to consolidate in the view of the long-term traders, the short-term traders and scalpers are making their money, and when it seems to be consolidating in the sight of the short-term traders, the scalpers are making their money. The most important thing here is for traders to know the reason why they enter the market and not just trade anyhow. Traders should mind their timeframe and plan in relation to it and not poke their noses in another person's trading style.

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Quote from: Barikui1 on November 25, 2023, 03:18:49 AM

Not all experience traders as they claim can identify consolidation in the price chart, which to me it's a killer of our account.

The market can not kill you and your account. You only lose your money if you gamble with your money in this volatile market. Gambling with trading (spot trading), higher gambling level with Margin trading and Futures trading.

Quote

Try not to be in the market when the market is consolidating, because there is a higher possibilities of you losing that trade.

The consolidation phase of market is most boring but if you hold your bitcoin, don't trade, don't use leverage, and let the market does its own job, you are free of market traps and it's one of biggest tricks to succeed in this market.

Quote

It's one structure we traders look down on not knowing the danger it pose to our account, during consolidation in a higher timeframe like 4hr is the most dangerous because it can go either way.

4-hour time frame and bigger time frames are more like suitable for investors. You will have less chance to enter the market and exit it by trading with bigger time frame. When you are trading with a wider time frame, it will force you to trade in Spot because you can not control your account in long term by trading.

A wider time frame you use, a more likely you are becoming a long term investor and no longer are a trader.

Topic: Consolidation (Read 177 times)