Episode Highlights:
- 00:06 – Advice You Receive From This Video
- 00:20 – Why You Should Understand Support And Resistance In Trading
- 00:38 – Why I Did Not Make A Video About Big Coin Cash Going Up
- 03:38 – Technical Analysis On Trading
- 05:23 – What Is Support And Resistance
- 07:02 – An Example Of Resistance
- 07:31 – The Concept Of Support And Resistance
- 10:10 – Looking At Resistance Points
- 10:47 – What Is Stochastics
- 12:08 – The Technicals Of Bitcoin
Grow your cryptocurrency investments with personal one-on-one coaching from Crypto Camacho. Click HERE
Transcription:
Hey guys what’s up? It’s Dan again from cryptocamacho.com where each day teach you how to make more money in crypto currency.
00:06 – Advice You Receive From This Video
Today I want to show you how the markets are reacting to bitcoin and bitcoin cash. I want to show you a little trick on how you can identify support and resistance. And I will talk about what that actually means here in a moment.
00:20 – Why You Should Understand Support And Resistance In Trading
If you understand support and resistance in trading whether it is a stock market or whether it is the cryptocurrency markets or whatever market you want, if you understand support and resistance then you would know are you would have a better idea of how to time the market, when to get in and went to get out. When to buy and when to sell?
00:38 – Why I Did Not Make A Video About Big Coin Cash Going Up
But first before actually get into that I want to address one thing. On a video that I made recently about bitcoin and bitcoin cash showing the actual announcement by coin base and showing the trading involved and all that, I got a comment from Victor and he said if you knew about coin cash going up so much why didn’t you make a video about it? And the honest truth is you could read my response here, but the honest truth is that I just had other priorities and other videos going on and just other commitments that I have had to attend to. My list of videos to make is actually quite long and I literally had three videos to make about big coin cash on my list. I just hadn’t had a chance to get to it yet before coin base made their announcement last night. I didn’t know coin base was going to make that announcement, so obviously I couldn’t tie my videos against the coin base announcement. So it was actually a surprise to me. I was on my computer last night doing a little bit of trading and all of a sudden I see that Bitcoin cash started to look like it was going to go up. Didn’t know why and then literally within a 10 or 15 minute window it did. It started shooting up through the roof and that is when I started really actively trading it. And that is when I started to make the video that you guys can see on my YouTube channel. And so I didn’t actually know, a lot of times I don’t know when these things are going to happen but I do have alerts set on my Coinigy account that lets me know when there is a change in price, up or down. And basically I set alerts at different points on Coinigy so that I know when I need to go and check my computer and going check the charts more specifically when a move is about actually happen.
So I literally had three videos about Bitcoin cash. The first one was aboutcoin base adding Bitcoin cash to the exchange. I knew that was meant to happen because I read in the news and if you guys researched he would have known as well.
The second one was about Bitcoin cash in 2018 and how it is when to go way up in value in 2018, that was another one on my list.
And the third one was one comparing Bitcoin to Bitcoin cash in terms of the technicals, in terms of how I see things playing out in 2018. I’ve given you to bit of insight into that in my previous video about Bitcoin and Bitcoin cash. But those were the three videos I was planning on making. I probably still will make the last one or two videos and give you my thoughts on Bitcoin versus Bitcoin cash in 2018 and what I think is probably going to happen. I would probably still do something like that but I need to focus and make a video about that. But just know that often I do post these things in the comments section. I did post about Bitcoin cash a few days ago, a week ago, maybe two weeks ago in different videos in the comments section because people are asking about it and asking what my picks were and Bitcoin cash was definitely one of them. I had some money there for a while and I was just waiting for this to happen.
So definitely make sure to read the comments in the videos because I can’t always make a video when everything happens. My list of videos is getting very very long but I can very quickly go into the comments section and add a comment very easily. That is definitely worthwhile to check that out.
03:38 – Technical Analysis On Trading
Here’s an example of my list. I have a lot of things on my list. There’s a lot going on in the market, there’s a lot going on in the crypto currency space so I’m trying to choose what is best to report to you guys and that is actually what I’m trying to do. But now let’s get into the heart of this video which is about technical analysis on trading.
So I’m going to jump over here to the charts and I am going to show you exactly what I’m talking about. So right now I’m looking at the Bitcoin chart and over here am looking at the Bitcoin cash chart. These are one hour charts on both sides and I just want to show your little example of how you can use support and resistance in order to be a better trader etc.
So what I typically do, I typically follow the hour charts because the hour charts give you the biggest or broader picture of what’s actually going on. And I would typically out quite a bit, see what’s happening, see the patterns that have emerged over time and how things go up, how things go down and I do this both on the Bitcoin side and the Bitcoin cash side so that am familiar with what’s going on. And especially in this case where you’re talking about Bitcoin and Bitcoin cash, literally one is inverse of the other. So in Bitcoin is going up in value, but coin cash is going down in value and vice versa. Say could almost use it to charts and the two movements against each other to actually better understand where the price is going to go. If I see Bitcoin dropping really hard and I can expect Bitcoin cash to actually go up a little bit and vice versa. If Bitcoin cash is going down, but coin tends to go up. This is not always the case but this has been the case in the last few days that this has been happening. And so I have been following both very very actively.
05:23 – What Is Support And Resistance
So one other thing I would like to show you, let’s jump over to the big coin cash chart. What I really want to show you is and talk about his resistance and support, so what is support and what is resistance.
Support is when a price is going down, going down going down, a price is going down and it’s losing value and at some point when it’s going down there’s a point where a large group of people, the majority of people, keep it in mind the majority of people decide okay, this price is so low that I want to buy this coin at this price and I want to support the price. And that’s where they buy. Here is a support point; the price came down, came down, came down…actually let me back this up a little bit and show you what I’m talking about. So just a few days ago obviously the price of Bitcoin cash went way up through the roof, way up through the roof, way way way way high. And then it crashed all the way down. It came crashing right back down. That’s another story but when it was coming down,
you can see and ask where is it going to stop, where is it going to stop, where is it going to stop and it stopped right here. There is support. That means there is support because people saw the price at 16.9, right below 17, again that even number. Watch those even numbers because that’s where support and resistance happens a lot. Right at that number, 17, people thought the price is so good at 17 that I’m going to buy it and push the price back up and that’s exactly what happened. It pushed the price back up.
07:02 – An Example Of Resistance
What is resistance? Resistance is when a price is going so high that at some point people think that I’m going to sell because I want to take my profits and that’s exactly what happened here. Price goes way way up almost close to 30, right at about 29 it drops. Again, that number, the even number, 30. It was getting up to 30 and people thought well, this can’t go on forever I am going to sell and take my profits and that’s exactly what happens.
07:31 – The Concept Of Support And Resistance
And so there is this concept of support and resistance which determines how the price goes up and how the price goes down. So another you understand that look at this chart a little differently. It is going up up up up and it goes down. It actually came down because of a little bit of a different reason, because coin base halted trading and that’s a whole another subject. I’m just want to teach you the concept of support and resistance. So you see it goes up to 22 and then it goes back down. The last heart support number was about 17.8 or 18 approximately; this is where most people support this. And one interesting thing to note here, that I want to show you, I’m going to jump over to 15 minute charts so you have a better view of this or even the five minute charts but when there is support gaining, you will start to see kind of an angled arc that denotes that there is a growing support for a particular coin at a particular price. Let me show you exactly what I mean.
So see the price went way up and then the price went down. It went all the way down to 17.19 or something like that. It went back up and then it came down again. This time it went up to 22 and where did it come down? It came down but it only came down to 17.8, not to 17.2. A little bit more support, it is going. Then we go up again, resistance is getting higher and support is getting higher as well. And it is happening again. And this looks like and this could keep going down, but it looks like there’s going to be support right around here. So what this tells you is you get this nice chart of an upward trend, what this tells you is that people supported Bitcoin cash, bank Bitcoin cash and selling Bitcoin cash at 17. And they went up and came back down and they said I’m going to support it a little bit higher at 17.8. It went up, came back down, oh I am going to support it a little bit higher at 19. It goes back up and comes back down and keep going a little bit higher. What this indicates is that there is a growing amount of support for big coin cash. It is growing. The number of people wanting to support this is growing. The majority of people supporting this is growing. And so I can expect this right here will likely not go below this 19 number. It could, I’m not a fortune teller but it likely will not go below this because it is showing that the support is growing. And at some point before it gets below this, it may just drop down to here, but it is going to go up again. And likely it will go above the resistance point.
10:10 – Looking At Resistance Points
On the flipside look at the resistance points. On the flipside resistance is getting higher and higher. So people are saying okay, right here I want to sell at 21 because I feel like that is a high price on some profits. And that is exactly what they did, they sold right here. Again, it went up a bit and this time it went a little bit higher because people thought I could probably get a little bit more out of this, let’s let it go higher. And again, the same thing happen again. A little concern is right here because it didn’t go above that but it at least went to the same level. So this indicates to me that the price is going to go up.
10:47 – What Is Stochastics
One other trick or method that I use is called stochastics. And in Coinigy it makes it real easy to use stochastics and that is why I use Coinigy. But if you look right here, these are called stochastics. And this basically shows the up-and-down movements of particular coins. And take a look at this you can tend to tell where there is a downtrend, and when there is an uptrend. Right now we are on a downtrend, so can expect the price to keep going down a little bit until this turns and come back up, the price is going to continue to go down. And this is not perfect, this is not like a mathematical thing that you can do but it is definitely a benchmark or a way of knowing when the prices going up and down and I use is constantly just to see should I buy right now or is this going to keep going down a bit. If I look historically at the trends it typically goes down when it is in a downtrend. And if it goes back up when it is in a downtrend, that also signifies to me that it could be going back up. It is starting to turn a little bit right here. So I wanted to show you some of these technicals, to show you how these things work because if you practice this and if you watch the charts, you will start noticing these patterns. You guys, keep in mind that a year ago I had not known any of this. I haven’t treated any of this. I have learned and as I have gone in crypto currency I just learned this by looking at charts all day. So just keep that in mind.
12:08 – The Technicals Of Bitcoin
Let’s go over to the Bitcoin side and let’s zoom back out to 15 minute charts right here. This is going to be a little bit more difficult to see but hopefully you see this. So there on a 15 minute charts here and so the same thing is happening to Bitcoin but it’s in reverse. If you remember what I was just saying, let me just jump over here real quick, so right here is in 19th and this is when the crash happened for a Bitcoin itself when Bitcoin cash started going up in value. And then after it crashed it went all the way back up. People thought okay this is temporary, this is a temporary crash and people were buying it’s like crazy, buying and buying and buying and you can see the same thing; support and resistance. Buying, going down, support, buying, going down, support and you can see how it is going up up up up up up and again that is an indication that it’s going up and in this case it did. It actually went way up. And if you start looking now, this is the exact inverse or opposite of Bitcoin cash. It goes up, goes back down, there’s a level of support down at the bottom right here. But that level of support is getting lower and lower. So there are three levels of support, first right here, try to have a bounce back, did make it very far and they went down lower. Bounce back. Didn’t even go as high as the last one. Again, it went down and it didn’t even go as high as the last one. So it is a downward downward trend that is happening and it indicates that the price is going to keep going down. So even if there are small bonuses between it shows that the price is going down and so this is an indication to me that this is going to continue and continue to go down in price. And that is how I am basing my decision on whether I am buying or selling Bitcoin cash versus big coin and what I’m actually holding.
And so hopefully this has been very helpful for you guys. And here we go again, you can see it is starting to look again, even while I am making this video. The support is even higher than it was last. So this is again an upward trend of movement, how things are being pushed up. So I am bullish on Bitcoin cash because a lot of these signs and it tells that I am seeing. Bitcoin is going up right now. It is going up. And it looks like it is going to go back up but look it is just starting to crack, so now it is going back down again. And I imagine, let me look at the stochastics really quick here, the stochastics show that it is on an upward trend. But then you see that red and you see it is starting to turn. You zoom in and you see that it is starting to kinda turn, it’s probably going to go down pretty soon. I don’t know for sure but it probably will and Bitcoin cash is probably going to go up. And it is, it is starting to go up a little bit.
So this is how I trade, this is how I use the charts. And I use other techniques but these are the main ones that I use and anybody can learn it if you just spend enough time looking at the charts and falling what I say and kinda looking at this over a period of time. You’re going to start to get this knack of being able to understand when things are low and when things are not and so forth. That’s kind of what I’ve been doing guys.
I hope this is helpful for you guys. If you have any questions please leave them in the comments. Send me an email, send me a message, just let me know what you think about this. It’s worked very very well for me in the crypto currency space. These markets are so volatile that you can literally be playing them all day and making money over and over whether or not our prices going down or up. It’s just all about timing. Markets are all based on human psychology. These starts basically tell you how people are thinking and if you are thinking that the prices are going to go up or down. It’s all written in the charts. It’s all psychology based. It’s all fear, excitement, fear of missing out, anticipation; it’s all of these things together which are driving the market either up or down. A lot of excitement around Bitcoin cash and so of his speech I would be putting money in there. There is also a lot of negativity around Bitcoin cash but the markets are telling us exactly what’s happening. There’s a trend for a Bitcoin cash going up and that is probably because people want to make money. There is a trend for Bitcoin going down for a lot of reasons. Even if you are a true Bitcoin believer, but coin core, and you don’t endorse Bitcoin cash and what’s going on there, it doesn’t really matter. It honestly doesn’t really matter. I don’t care what you believe. I don’t care what ideology you have. To me it doesn’t matter. I’m just trying to make someone in these markets. Ultimately, obviously long-term I would love for bit going to work out really well and I don’t think it will and I would love it to be a peer to peer way of exchanging money and exchanging goods and services and whatnot. And so I really sit in that camp. I wanted to be easy. I wanted to be low fees. I want the transactions to be very very quick. I don’t want to wait for a couple of hours for my transactions to happen. If you compare a Bitcoin core to etherium core for example, it’s night and day. It’s ridiculous how long Bitcoin takes compared to how long a theorem takes to do a transaction.
So I leave it at that with this technical analysis. If you guys have questions, again let me know. I am Dan from cryptocamacho.com. If you haven’t subscribed yet please click on that little red button and I will talk to you next time. See you guys.
