Episode Highlights:

  • 00:08 Advice You Will Receive In This Video
  • 00:34 The Tron Or Trx Chart
  • 03:16 An In-Depth Look At Tron
  • 04:16 What To Look For In Charts To Know If You Should Buy Or Sell A Coin
  • 07:51 What To Do When There’s A Drop In Price
  • 09:35 How To Read If The Chart’s Going Up Or Down
  • 13:48 How To Trade On The Bases
  • 18:34 Using Stochastics To See Trends

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Hey guys what’s up. It’s Dan again from cryptocamacho.com where each day I teach you how to make more money in cryptocurrency.

00:08 Advice You Will Receive In This Video

And today guys I want to talk about some specific techniques that I use to identify when a cryptocurrency price may go up or when the price may actually dip.

There are very specific things you can look for in the charts or indicators you could look for in the charts that will literally tell you the story of the particular price point of that cryptocurrency and if the price is going to go up or down. And I want to show you these techniques today. So let’s jump right into it guys.

00:34 The Tron Or Trx Chart

So I’m going to use the Tron or T.R.X. chart today, I’m not going to talk about Bitcoin itself. I’m going to do that in a later review. But I do want to talk about the chart because I think this chart is a very easy chart to read and it represents a lot of techniques that I’m going to show you. And I’m going to help you understand how you can incorporate these in your trading of other cryptocurrencies as well.

If you remember guys these charts are literally a byproduct or an illustration of how the market is feeling about a particular cryptocurrency; whether there’s a lot of support for the cryptic currency or whether there’s not a lot of support. Whether support is gaining for that cryptocurrency or support is waning and they’re starting to become resistance of a price point going up of a particular coin. So that’s exactly what I want to kind of walk through in this video, is to show you how you can really start to understand the psychology behind these charts. I mean think about it, these charts are literally just a reflection of the human beings that are actually buying and selling this particular cryptocurrency. Their emotions are running high either up or down in they’re reacting to the prices, to the volumes, into the things that are reading in the news about a particular coin. There’s fear of missing out, so people are dumping money in because they’re afraid, ‘I’m going to miss the boat, I want to make money I’m going to miss the boat.’ There’s also anticipation of prices going up because of what you read in the news. ‘Tron is going to transform the world. It’s going to revolutionize the entertainment industry blah blah blah blah blah.’ You read all of these things and you can’t help but to anticipate ‘gosh the price is really going to surge up’.

This is kind of accentuated or compounded by the fact that in cryptocurrency today, there is no way to put downward pressure on the price or to short the price, to short the actual cryptocurrency. With stocks you can actually short a stock, meaning that there’s downward pressure on that stock to bring the price down because there’s a number of investors that are betting that the price is going down. In cryptocurrencies you can’t do that, especially with altcoins. You’re able to do that now very very slightly with bitcoin, through certain institutional investment vehicles, but generally as a whole you cannot currently short altcoins. And so most of the price is driven up by emotion, by reaction, by not necessarily the value of a company per se but by the projected value of the company based on what people think it might be. And that’s really largely how these charts are being drawn today.

And I want to talk through how you can see this. You can actually literally see, in the charts, how people are supporting or not supporting a particular price point of any cryptocurrency.

03:16 An In-Depth Look At Tron

So let me show you exactly what I’m talking about guys we had a big run up of Tron here. And let me just jump over to a different view of this chart. So this is again this is Tron, it’s just a different view. I kind of zoomed back in time, back to the early days, early December when the price of Tron was at sub pennies or even pennies. We’ve had a great run up since then. and I’m going to show you on this run up, how you could start today trade in monitor and understand when the price may go up or down for a chart like this, like Tron. And this is just one example of many. There’s tons of examples, this is just of very clear example that I found that I could use for you guys.

So let me get my pencil here and draw a few things for you. So before the run up, not a whole lot of activity to report on it. But then once you start seeing the price of this coin going up, there’s actually a lot of data you can use literally in this chart to show you and to help you understand if the price is going to continue going up. This is a great example of it.

04:16 What To Look For In Charts To Know If You Should Buy Or Sell A Coin

So what you want to first look for in charts when you’re looking at whether or not to buy or sell a particular coin, you want to look at what a price is that today. So let’s pretend that today is December 31, the prices like right around here today. Let’s say you’re looking at this chart and you’re like should I buy this coin or should I not buy this coin? What’s actually happening with it? Well, I would look at the history of the chart and I would first look at all the high points, all the tops in the last couple of weeks or a couple of days of where the cryptocurrency price has been. So let’s just draw those out. There’s a top right here, there’s a top right here, there’s a top right here and there is a top up here, right up top here. So there’s a top. Top here, top here, top here…

And then I would go through and say ‘ok, where is the actual bottom. There’s a bottom here, there’s a bottom here and there’s a bottom here right. And that’s initially what I would do. I would initially do that and then I would start to look at ‘ok, of all the tops that I see, is the trend up or down. And in this case the trend is clearly up, clearly going up. And so I would look, there’s one top, the next top is actually higher than the last top. And the next top after that is higher than the previous top before that and then it goes up again. So there’s a pattern emerging and you could start to see this even earlier o. You can start seeing this even really down here. You know there’s a top really right there. And so you can start to see that there is a trend up of that particular price. So it’s going up. Great.

So bear with me; same thing goes on the bottoms, right. So you look at the bottoms. The bottoms; there’s a bottom here and the last bottom was actually higher than the previous bottom. The next bottom or base if you will, is higher than the previous base, so forth and so on. And you could start to see a trend here. The price is going up. The price continue, the trend and the price too but the trend overall is going up; that’s a good sign. That makes me think and know people are starting to adopt this. The trend is going up, we’re getting more user adoption even though there’s big dips in here we’re still getting adoption.

Let’s look at the percentages of these. So let’s go back here. And from this top to this top, what’s the percentage? So the percentage rise from this top to the top is 65%, that I was a huge jump. If you would have bought right here and sold up here you would have made 65% profit which is big.

The next top it is approximately 45%, another very big gain and so forth and so on. The next one is 20% and then the last one we see here is actually about 35%. So some big jumps here. So that’s on the top side and you can do the same thing on the bases. But my point is that now by using this technique you can start to see that the trend is going up.

So now we’ve hit top, there’s been very strong peaks of this particular coin. The last peak was very impressive and very much a high for this coin, a big high for this coin. So you can expect what’s going to happen after there’s been several run ups, the last being the largest, what’s going to happen? There’s going to be a big drop in the price. And look, that’s exactly what happened. A huge huge drop in the price.

07:51 What To Do When There’s A Drop In Price

And so with a big drop in the price like that what do you do? You kind of start over. You start measuring again. Ok, so where’s the bottoms, where is the tops? And in this case you can start seeing that the tops are going lower. They’re getting shorter. We’re seeing downward movement. So the trend is now going down. So we see a downward trend. And you can see that. And that could have kept going and going and going all the way through and you would have known because every time you see a peak and it’s lower than the previous peak, in this case you know support is waning. People are starting to support it at a lower and lower price and you can see that in the chart. Whereas right here, people were supporting it at a higher and higher price and the bases were getting higher and higher meaning people were starting to support it at a higher price point. Meaning that people were starting to put the prices being pushed up because there’s more people that are supporting it at a higher price than previously. So that’s kind of how this game works. And that’s exactly what’s draw on right here.

Now if you look right here, you start to see the reverse again. You start to see the reverse. You start to see ‘there’s the next one, it’s kind of leveling out from this downward trend, it’s starting to level out here.’ and then what do you see? You start to see some peaks. Again the peaks are trending up again. So should you invest or not? And again the same thing goes with the bases. And if you zoom in a little bit you can you can draw those bases a little more clearly but that’s the general concept that I want to kind of leave with you guys of how to read if the chart’s going up or down. And can use these general techniques to view that.

09:35 How To Read If The Chart’s Going Up Or Down

Right so let’s jump in a little bit deeper here. So keep fast-forwarding in time and what happens to the chart? Let’s zoom in, my drawings are going to kind of become nothing. But what happens is we’re generally seeing a trend up up up up up. We see a little bit of a down but then we start seeing the upward movement again.

But that’s exactly what happened. Here’s another peak, if I had this chart laid out right but you can see it. But there’s another peak higher than the previous peak. And we see that the entire way up. The entire way up you can see the exact same thing.

Again, you can see it here. I’ll draw another few. There’s a peak, there’s a peak, there’s a peak; the trend is going up up up up and it went all the way up to $0.30, approximately $0.30 right there. And again the bases are getting higher and higher and higher and higher. And so you see that there’s a big drop here but it’s only one drop. It’s only one drop out of many that are going higher. So yes, be cautious of that drop but then immediately you start seeing the trend going up again.

So you predict again what’s going up. So that’s the basic way to read this. And now currently after the peak, this was the highest peak at $0.30, what happens? The exact same thing I just said, right. The tops are getting shorter. The tops are getting shorter shorter shorter meaning the price is trending down down down down. and the same thing on the support; the bases are getting deeper and longer, meaning you know more people are willing to buy at a lower price. So the price is trending down.

So you can kind of read these movements and kind of see how the price is going up and how the price is going down. And the same exact thing happens right here. I mean, just in the last few days we see the last major dip, at $7.39. But then you start seeing the support growing stronger and stronger and stronger. We do see a little bit up right here, not a whole lot. And then again a dip down. And you can do this with one hour charts, five minute charts, fifteen minute charts. Anything you want.

I recommend you use the one hour charts to start with just because there’s more time and leeway to react to what’s actually happening. If you use a five or fifteen minute chart, you actually have to react fairly quickly. In five minute charts, it definitely could be a little bit dicey because things change so quickly. And so it’s a little harder to be consistent with what you’re reading. But that’s exactly how it works. And so today’s price point guys is about $1017. I would say based on the current charts, we did recently see a large run up right here. Pretty big run up right here, I don’t know what the percentage was but it was about 45%, not a bad run up at all. And so we’re seeing kind of a drop off from that.

And overall the trend is a little bit down but now it’s kind of leveled out and it’s kind of equalized right here. So I don’t have a particular recommendation on whether to buy or sell this particular coin based on these fundamentals or technicals in the chart that you’re seeing. I have other opinions which I’ll give in a later video.

But keep watching this chart guys and see what happens here because you’re going to see this is kind of an equalizer right here and it’s kind of flat. But are we going to start seeing another drop in the base right here… I mean in the top right here, right here, right here. Or are we going to start seeing more support and is it climbing up? Because if it starts climbing up a bit, even higher, then I would see another big spike coming up soon. Maybe not as big as the last one but maybe we’ll see another spike.

You can do this as with any any chart. And I want to reiterate that you can do this with any chart. Tron just happens to be a very very nice chart for this. So take a look at it. Study this chart. Study exactly what I just said and it will help you tremendously in future trading.

13:48 How To Trade On The Bases

So there’s also one other thing I want to want to show you guys here. Let’s go back and look at that chart. So one other big opportunity or way to make money which I which I often talk about in my videos is trading on the bases. And I want to focus on that for just a second after I have explain the technique that I just went through. Because all along this journey of Tron’s price rising to the top, you could have bought and sold on the dips.

Any time you see these charts doing this I would recommend you watch for these bases. And I’m always talking about base trading and trading on the bases. And this is a really really good way to actually do that. You can look at these bases and if you were to trade on any of these bases here, you would have made a good run up every single time. And so be watching for these big dips. If you really believe that a particular coin is going to be around for a few years, you believe in the technology, you believe in what the business is trying to do and the mission of the company, then these dips should not scare you very much. Because unless you think the price is going to go to zero there’s always some amount of support to buy back a coin when there’s a dip. Now this will be superseded by any news. If any news comes out and says ‘this company lost this partnership or is going to go bankrupt, there’s no guarantees. News always trumps technicals. So when you hear news that’s something you want to react on because people are all reacting on that. And if the price is going down because of the particular news, you probably want to pay attention to that and these technicals are going to be as important. So keep that in mind.

But assuming there is no news and you see these big dips, you can definitely profit on them. So I would watch them. Right here you could have watch this as the last base and say ‘oh, we cracked the base. I’m going to buy below the base. Anywhere in between here I’m going to buy’. And then what happened shortly thereafter, if you would about anywhere in between here, you would have a very massive profit, right. So anywhere, anywhere between you would have made anywhere from 135% if you sell at the right times, which you know is difficult.

So that’s kind of how it works. And let’s see some more of these dips which I want to show right here… some of these ones are very very obvious. I mean like for example this one is very very obvious, and I’m going to be using the one hour chart. But let’s assume we didn’t know where the price was going to be and let’s assume this is what the chart looked like. We were looking at the chart, we’re debating whether or not to buy and this is the chart we’re looking at. And we’re like ‘oh wow it’s already had a very big run up. It’s got a huge run up.’ So you’re trading and all of a sudden you see a run up here and you see a big dip come up right here. There’s the big dip. And you say ‘oh, I’m going to buy on that dip because it cracked the last base. You would have been smart, you would have bought somewhere right in here and you know the price would have gone up up. Sorry I’m going crazy with these now. And the price would have gone up further here. Same thing happens on the way down. Last the base that we saw on the way down, here’s the base, coming down, coming down, coming down. The last real strong base was really like right here or right here. So if we play off the same pace and buy right here, you still see another run up so forth and so on. And as the price drops these bases are going to get lower and lower and lower. But you can always expect that on a very strong base or a strong drop there’s going to be a bounce back. There’s going to always be a bounce back.

And think about it guys, when prices are dropping significantly people start panicking, people start selling their coins. They’re like the price is tanking, I don’t want to lose my coins.’ I do this too. I don’t want to lose my coins. I sell. You sell, right. And the price drops. And so there’s momentum to keep the price going down down down.

At some point it hits the bottom and then there’s support and people say ‘oh this is a very good deal for this coin. this is a very really good deal, I’m going to go ahead and buy.’ and the price drives it back up unless they think that the company’s going to go out of business or something, they typically buy back; buy and sell.

So I always try to buy on these dips. I don’t always do it, don’t always have the time or the visibility but that’s what I try to do. Hopefully this has been an educational video for you guys, hopefully this has helped you. But I would definitely look out for those trends that I just showed you.

18:34 Using Stochastics To See Trends

One little bonus I want to show you guys really quickly here, it’s a little bit more advanced but it’s very similar concept that you can use. It’s something called stochastics to help you identify these trends. I use these all the time. Just go to your coin in your account and type in STO and you’ll get stochastics. Stochastics 1413. And you can start to see these same types of trends that I’ve been talking about. So let me just zoom into a good spot for you. So here’s an example of what I’m talking about guys. So here’s the stochastics right down here, here’s the chart going up right here; same exact concept. I can’t really draw on the stochastics area but you get the idea.

Same concept here guys. As the price goes up you see the bases being higher and higher and higher. And you can see that the base rate here, it’s going up. Even though the price isn’t really going up all that significantly over on the chart, it’s harder to see. On the stochastics you can see the same thing happening. The previous base is higher than the last and that the next base is higher than the previous base. And it just keep trending up and up and up and up. And you can see, as that’s trending up and up, we’re getting ready for a big bump in the price. We’re getting ready for a big rise. And that’s exactly what happened – preparing preparing preparing preparing boom, there is a big spike right here. And then it typically lasts for a little while. When there’s a rise it often lasts for quite a while and then we go back down. And so I definitely look for these patterns in the stochastic charts because that is typically how I’m seeing some of these patterns and some of these trends emerge.

Anyway guys, I hope it’s been helpful for you. I’m Dan from cryptocamacho.com. If you haven’t already subscribed to my YouTube channel, please do. Click on that little red button below and I would love some comments in the comment section. Let me know if this is useful for you guys. But again, I’m Dan from cryptocamacho.com and I’ll talk to you later.