Topic: How to know when to BUY? - page 19. (Read 2072 times)

I would like to say, it's a smart thinking all about. What do you want to know. It might be helpful to you and others. Moreover you should to practice to do know well.[/list][/list]

Well, this should help noobs who may want to trade long term and for any one who may want to use this, please try to learn how to use MACD and RSI for divergence, oversold and overbought market.

With that being said, here is how I go about long term trading with the altcoin market. (This should be for those who want to take advantage of the bottom and peaks, not the HODLers).

1. Since it is a large space, you can make use of this site to look for oversold markets (https://rsihunter.com), but please be careful the coins or tokens you choose as not all coins should be traded (that is my own opinion) and in that case you may want to be sure of the coin by trying to check the team, project and idea, before going ahead, except it is a coin or token you are already familiar with. You can search the particular coin market on coinmarketcap.com to get some information such as website, history and stuff.

2. Also, you should consider time frame that suits you best, but for long term and this pattern, 4hr and daily time frame is perfect. You can make that decision after trying both time frames on your first few trades.

3. Do not rush to buy even after a market is oversold. Forget about the short and quick pull backs which is why for a beginner, I would actually advise you get use to the daily charts before even going lower. Monitor the market, turn on your RSI and MACD indicators (in this case I want to believe you have learned how to use them - there is a lot of resources online to make use of, just search for how to detect divergence on MACD most especially). RSI can also be used for some sort of divergence, but to know if a market is overbought is when the line is above 80, oversold is when it is below 20, depending on your settings. I love using RSI length 8 for some reasons, but the default is 14 and that should be good enough.

4. Now, this is the tricky part but not that hard. When the candles keep going down and the MACD are moving up, that is a divergence and some accumulations already going on. To be in a good position, you may also want to learn price action with the candles, and in this case watch out for those bullish candles. In some cases, you can actually see the market going sideways, that can make it easy, but watch out, just in case you see some break down below historical supports (I forgot, you should learn support and resistance as well).

5. Now, assuming all things have worked pretty fine, as mentioned above, just have patience and wait for it. Now, buying is easy, but selling is another hard part. Firstly, never get greedy, as you can just stick to a certain percentage and if you are lucky to have that, then fine. However, the same way you watched out for the bullish divergence to buy in, you can also watchout for bearish divergence or once you see FOMO and an overbought market on the RSI, sell and be happy with the profit you have made. Sometimes, the market may move up the more, but remember, greed is what has led most traders into losing what they have gained. So, look for other potential markets or wait for another dip.

6. To add to number 5, you can also use price action on the candles to know when a price is being rejected. However, I would advise you to always sell bit by bit as long as the value is becoming too good to be true. At least, get out your initial investment, when you have reached a stage, and then play with the rest.

I really tried as much as possible summarizing this but not easy. I have given enough clue, so do not rush, learn how to use some of those indicators, be sure you know what you are doing, and this should be a safe way for anyone who wants to trade. I hope I did not end up confusing anyone the more.

Cheers on your journey as a trader.

it is very hard to know then we buy,it need exp,with me I will set price for coin I want to buy,i and buy a little and a little,i don't buy one time,nobody can buy at bottom and sell at top

There is no exact answer for this question but the common rule is buy low and sell high so you have to buy when the prices are low.And as you said don't buy when the price chart is in rapid increase because the chance for price falling after the rapid increase is more.But no one can say when to buy only you need to understand from that your experience if you are a noob in trading start with low capital and then once you got familiar with the trading increase your capital amount.

To look at whilst to invest. There are hundreds of altcoins. There’s no manner they’ve all been going up constantly for 30 days. What occurs is that they pass up for a while then drop back a piece then move up again then drop lower back once more and so forth. the general trend is probably up however there’s peaks and troughs on the way. research the cash to look if it’s some thing you’re satisfied to invest in then buy in whilst the price is on a downturn, preferably simply before it starts offevolved to rise again despite the fact that obviously this isn’t always clean to predict. There are books on chart patterns which could assist to perceive tendencies.

You should learn how analyse the trendline, and identify 2 basic things:

• support levels
• resistance levels

This is not an easy skill, but just these two things alone can help you figure out when to buy and when to sell.

As a general rule, you sell when you've hit a resistance line and buy when you've hit a support line. (the problem is you have to identify them and you can easily mix them up in real situations, especially because, for example, a resistance line can be breached from time to time)

As an example of this, check this image:

https://www.investtech.com/images/help/indicator/supResBuySell.000.png

If you want to check it using chart, technically you need to mastering trendline drawing. If price hits the line, that could be a signal to buy or sell. But note that, it is not always valid signal so we should use other supporting tools like indicators and news.

The major point that you still left out is what do we know about the project for which the altcoin was made. I mean does that project is making any good progress or is there any recent good/bad news about it. If yes/no depending upon the answer you can choose not to invest or invest heavily as the result would depend on that considering its future.

Rest of the points that you have mentioned are correct one and there doesnt need any additional facts to be considered before you can buy any coin.

I think the best reasons to buy an altcoins is mainly to consider their project whitepaper and dev team because there are lots of altcoin with similar project and shady developer. However there are also many project that doesn't seems to help making human life easier and mainly focusing in maintaining their price after ICOs and after entering the market.

High volume doesn't mean that coins will last long or the project will continue in the long term, if you're a short term trader then this might help you however if you're a long term investor then this doesn't make sense at all since coinmarketcap volume only shows the last 24H.

You should know that a rise happened when the price is pumped, if you're waiting then you should underline how long you will wait until you want to buy. Is it after the correction? Is it when the price created a new high? Most people tend to buy when the uptrend already over and considered a new dowtrend as a corrections. Its better to follow the whales then to swim against it.

You can't predict a pump and dump just by looking the chart, a dump in lower 5M timeframe doesn't even mean a thing when you consider 1D volume, each chart has their own volume and volatiliy. You should consider what kind of investor you want to become, is it a trader with lower timeframe (5M,15M,1H) for trade or an investor with higher timeframe(4H,1D,1W). For the record, if all you do is waiting when the price is pumped and dumped, then its better to wait in the sideline and not try to invest at all because there is no perfect time to do an investment unless you already created a plan to overcome the lack of information.

I think it's very hard to actually do that but of course there's ways to actually get one but not super accurate  but it's worth the risk but of course you can both loose or gain.

Hello,

Can somebody explain how to decide buying an altcoin?

Let me write what I know;

• Check the coinmarketcap.com and choose ones with high volume
• Check the projects
• Check the chart, if it is pumped, don't buy, wait
• Check the chart, if it is dumping, wait low volatility

Please correct and/or add other ideas to help noob traders like me

I will try to give merits to good posts as much as I can.

Thanks.