Good Afternoon Everyone. I am looking for some help. I recently started trading Crypto and thanks to Luc I am definitely learning a lot. The problem I am having is that I don't have a problem identifying "obvious" bases but I get confused when there are multiple jumps (not super significant as the base I originally found. I am including an example if someone could help I would greatly appreciate it.
The green line at the bottom is my original base but then the chart starts jumping....what is the next base? It seems like it would take a couple of days to crack my original base?
To me, the big drop and bounce on the left is an obvious solid base and as you see it drops later and rebounds to that base. Then the chart is generally going up, which we can't really trade with this method. Where your green line is a new solid base, it drops a lot but rebounds beautifully... the following drops and bounces can be bases too, but as I said it's going upwards.
So its better to trade in a downward or leveling trend versus and upward? With the exceptions of obvious large back and forth arguments.
Just to illustrate, Bitcoin has risen as you know over the last few weeks. There may be an opportunity to trade, but not as many as when it's on a downer.
Thank you very much for your responses. You have really brought it to light for me. I’m excited to go back to the charts and start anylizing. This community is great and I am glad I found it (it’s like the golden egg of information).
On a downward trend you'll see it breaking bases (support) more often, which are excellent opportunities to trade. When the trend is upwards the bases tend to not crack as often or as deep as they do when the market is going down.
Hopefully you can see what I mean there. You could squeeze a trade in if it drops below a good base with it going upwards but you're less likely to find them from what I can see...