Topic: Does technical analysis work in crypto trading? - page 4. (Read 556 times)

Smart money is just another form of technical analysis used to trade forex and crypto, I believe it's just an innovation from from the usual and common components of trading though incorporated with some modeling, it's good as a trader to keep abreast with the latest way of trading mostly now named ICT and that is exactly where I am presently diverting my attention to in learning trading, I had read series of tutorials and chart patterns with regards to Smart Money Concept and it really making sense having practice it on real chart and based on price patterns or history repeat itself, thus it would be of useful to you if you can learn Smart Money alongside technical analysis in the long run it's going to help your trading journey moreso also ensure that you practice your trading strategy.

Technical analysis, fundamental analysis, sentimental analysis they all have their different uses in crypto trading. In technical analysis, we use historical data, chart, previous market movement patterns etc in order to predict short term market movements in the future. It is quite effective but not always accurate. Because other two analysis are also involved in the market.
With fundamental analysis, we need to see the potential of the project we are going to analyze. Who is behind the project, what could be the usage of this particular coin, who are providing the funds for the project and things like that needs to get analyzed. And based on that we buy or sell the coin. This is used for long-term investment plans.
Which sentimental analysis, it is also used for short term. It depends on investor's emotions or sentiment attached to the market. The thing we call hype or trend comes from this.

Learning only technical analysis on to make you the best trader out there. But it is a process you must learn and master. And then you can move on to other analysis. When you learn all of them, you can combine them to make your own strategy. Just because it does not work always doesn't mean you should not learn it. Keep learning it and you will see the result in the future.

I learned SMC two years ago through a mentoring program. It is tough to appreciate the learnings if you are new to trading and have no prior experience. SMC assists you in determining how the smart money interacts with the market. And because smart money is aware of this method, its win rate will decrease. That is why you must back test and improve your technique in order to improve your win rate.

There are no strategies that have a 100% success rate, and there are strategies that may not work for you but do for others, but I can promise you that technical analysis works in cryptocurrency since that's what I've been using in trading since then.

Technical analysis is a crucial technique for traders and can assist in trading as well. Technical analysis is not necessary for you to know, though, to be a good trader; other elements of trading are also necessary. It's excessive that you learned solely technical analysis for five months. In order for you to be able to trade, I believe you should also understand other things. Technical analysis isn't the most important thing to know while trading, although it does help occasionally. What strategies do you have for using technical analysis? That is the question here, because it also matters that you cannot trade without having your own strategy. 

Trading doesn’t change, and smart money is not what you are thinking, in my opinion, because what I understand by smart money is that when an individual or investor makes money from an investment using their knowledge or experience in the market, this investor can always be someone who is knowledgeable in the market and always has a successful investment. They always engage in research to gain knowledge about the market they will invest in.

Well, while technical analysis could also help to give you (the trader) some hint in the trade, it doesn't guarantee that if you use technical analysis, you will actually make more of a successful trade. You also need to be familiar with the use and combination of some other trading tools, the use of indicators like the moving average, and their likes. You will also have to develop some good trading strategies; that's what will help you win the market, but even if it's not a 100% win, you will still experience some losses, but not as much as when you don't have as much knowledge about trading.

All methods doesn't have any guarantee since it all matter on how the trader execute their trades. But if we pay close attention on the ongoing movement of the market for sure we can figure out its possible movement. That's why before doing traded a proper analysis is really needed and we need those charts to see the price history of the token and possibly find the best position we can enter especially if we do day trades. To loss on trades is really possible since after all market still unpredictable that's why at least we use our brains to analyze since it can give us more better chance to earn some profits rather than using nothing since it will just ruin our day because for sure we have more huge chance to lose by randomly picking up some situation to trade.

Technical analysis will not guarantee you profit it is only a possible estimate by checking previous market conditions but it is never 100% accurate.  So you have to take responsibility for your loss.  You cannot blame technical analysis for your losses.  Because you yourself know that trading is risky and you have accepted it and started trading.  If you trade without doing technical analysis then you will lose as much as you can through technical analysis but it is not possible to avoid loss.

Do you mean that after 5 months, you know how to do technical analysis? In your first month of crypto trading, do you know how to do technical analysis? What is the first month you know how to understand tools and indicators in trading?

Each of the indicators used in trading is understood immediately, and you know immediately how to use them when you perform technical analysis. Is that what you mean? Or are you just bragging here so that other communities here think they think you're great? I'm just asking you.

Yes, of course you must know how to do technical analysis, this is important when you enter trading, you can't just enter basic knowledge is important if you know how to do T.A, it's good for you Discipline in trading is the most important thing

technical analysis is used to get rough illustration of the market, its not the absolute way to make profit out of trading and not truly accurate indicator either, you just use it just in case but never expect that everything will go according your technical analysis, have you seen many candles that supposed to go up but suddenly go down awkwardly? that occurs a lot in trading and I think at this point thats kinda normal thing.

TA so far is not foolproof so you need to find another strategy to contend against the ever changing market, one of them is just relying on trend and news, as the saying goes, buy the rumour sell the news this honestly can have better chance of winning when it comes to trading remember the rumour about ETF approval? when it was still a rumour nobody give a damn but right now we are nearing the revealing of the ETF everybody suddenly want to accumulate their share of bitcoin but the price already increasing anyway so it could very well be too late for many of them. back then bitcoin was hitting price so low that right now many people are already getting good profits.

What do you mean first in "smart money"? You didn't give the context or meaning of it, and you are saying that it's more reliable than technical analysis? Even if you are learning about technical analysis without enough execution or experience you will never see its worth, you are saying that technical analysis is not reliable but in fact this method is being used by many traders as it could give them insights on what will be the possible movement of the market, although technical analysis is not 100% accurate because in trading there will be no a 100% as the market is unpredictable, still with the use of technical analysis it could give you what will be your next move, where to position or where to do your trade, if you think that technical analysis is not useful then so be it tey using your "smart money" method then come back here to say what is your experience, you are still new to trading so its still early for you to say that technical analysis is not useful for earning in trading that is the common problem with the newbies in trading.

You can't win in trading just by using TA only which is why we also have to find another way to make our trades profitable otherwise, we lose. Yes, as the market changes, we also have to level up our market strategies for some of them are obsolete already. We have to adapt to the situation and never stop learning because this is the only we will survive from trading. That is why we could say that trading is not an easy job, it needs more knowledge and effective strategies.

So basically your are pertaining on calling that smart money is into that kind of sending out your funds and letting other people do handle those funds instead for yourself on making up those trades and other investment
decisions? Is this something that you would really be that willing to do so or not? Going back into the first thing that you had said about relevance of technical analysis. Yes, this is something which is really that relevant.
We cant really be having a market to have that only on having that kind of news from time to time on which you cant really make use of FA and this is where TA would really be that setting in.
You cant really just make out those trading positions without any basis because you are really just that basically doing gambling in the first place.

Also if you do really make mention about smart money, then its up to your own choice. If you do really trust them up on making a hold of your finances or investment
and making up some trades for you then its impossible that you wont really be able to know or been wary about the risks involved into this one.

You cannot do without making use of technical analysis in trading, if you think going through the use of smart money may not generate you the desired expectations, even though things might appear working out but it will soon got to a stage whereby you will have to engage the use of technical analysis for your results to be accurate enough, we may not have to use a single approach for trading sometimes.

I was about to ask what you understand by smart money but I read through the thread and I saw your definition.

This is from Investopedia the page you most likely copied your definition from. Now the only difference between those big investors and the retail investors is that the big investors have more information or understanding of the market.
Every investment decision they make has been analyzed properly It doesn't mean those institutions don't do technical analysis, they do but with more knowledge.

Good luck with your trading journey. Remember whatever strategy and trading style that seems easy and working on you, stay on it. You don't have to be much of an expert because what's important in trading is profitability regardless of the strategy you use, whether TA, FA, smart money or anything that you use as indicators that shall depend your decisions.

@shisotsu, look at the quote that I've made and what oshosondy has said about it. Don't ignore the warning that he has given and the highlight that I've quoted for you as a reminder.

As far as I know and what I have done, crypto trading using data Technical analysis is historically important where analyzing market movements looking at charts and other guides that identify patterns and trends in the direction of the type of crypto we want to trade is the thing for meneeds to be looked at carefully.

Maybe with the current conditions of the crypto market, speculatively it is a little difficult to rely on technical analysis, because it does not match the price patterns and trends that are seen, Maybe with the current crypto market conditions, measuring crypto performance is difficult to determine future prices, where you can see that currently it is up 1% in the next hour, down 2%, this is a bad sign, I think the crypto trading method in the form of technical analysis is not suitable for now, wait for crypto prices in the market to stabilize, maybe the technical analysis method is suitable.

I understand that I'm newbie in trading, now I'm trying to learn only the right things and not get lost because of other concepts and other people's opinions. Thanks for the advice and for guiding me!!!

Just five months? No wonder, you are still new in the market trading, you need more experience if you would stop listening to people so as not to misguide you. As a matter of fact, I have never seen a better and more powerful way to know the trend of the market than the technical analysis and what the sentimental analysis and fundamental analysis can't do, it would do it successfully and even easily. It has been the best light on my trading path and without it, I don't think I can trade this long as my trading system centres on it having tried all possible means of trading. My advice is that you learn about it more and train what you learn about it for your own good.

You can learn the price action, Fibonacci and trendline among others, and avoid much of the indicator's trouble and deception. And if you learn them diligently and understand them as well, you will never have issues with your trading anymore, I am sure of that, and it will make your trading management easier for you. By the way, those who are talking about "Smartmoney" are only enjoying the excitement of the moment, you will see all of them shutting up their mouths when this obvious bullish season is over. This is where you are multiple times better than them as your time in trading does not have a season. You profit all the time if you fully understand your chart reading.

While I believe that its not perfect, technical analysis does offer valuable insights in crypto trading. It helps identify support/resistance levels and improves risk management, and helps guide your trading decisions. It has limitations, however, like being susceptible to market manipulation. To truly thrive, combine TA with other methods like fundamental and sentiment analysis.

If you have any questions you can contact me via my Discord: https://discord.gg/2TFSrzunK3