TheTrader’s latest video on Cryptology Key centers around altcoin trading methods and how technical analysis plays a role. In this video, TheTrader demonstrates how he has been trading AVA and Ethereum by applying technical analysis techniques. He outlines the procedures he has been using to find trading opportunities in an otherwise slow-moving altcoin market.
Current Altcoin Market: A Challenging Landscape
TheTrader’s latest review of the Cryptology Key paints a picture of an altcoin market that is for the most part weak and devoid of any real volatility. With price action so restrained and discernible trends in short supply, he notes it is no easy task for traders to put on new positions. Yet there are openings for the astute operator who can adjust their approach and find them.
In these kinds of conditions, TheTrader recommends being more patient and putting greater emphasis on technical analysis. His advice is to forgo the hype and the kind of volatile moves that are hard to come by, and concentrate instead on particular setups where the odds are more in your favor.
Technical Analysis Tools: What TheTrader Prioritizes
TheTrader is not one to let liquidation metrics or heatmaps dictate his moves when it comes to altcoins. In talking about his methods, he makes a point of steering clear of such tools in favor of watching the volume dynamics from the last week and day to see if there is any real interest in a coin or if it is waning.
His work with AVA is a case in point. There he identified a reversal on the daily chart, a pattern that usually points to accumulation and the makings of an upswing. To be sure of his entry, TheTrader then put in place a quasi-mode following a liquidity sweep on the lower timeframes. It is a good illustration of the kind of layered discipline he brings to his technical analysis.
Why News and Market Structure Matter
TheTrader does not rely on charts alone; he will also look at the news of the day before committing to a position. Take the AVA trade for instance: he saw that a new blockchain version was being rolled out and there were buybacks in progress, which made for a compelling story and put speculators in the picture. When you have that sort of fundamental backdrop to go with the technicals, the odds of a good move are improved.
With Ethereum he went about it in much the same way technically. But without any sign of liquidity being pulled from the edges of the range, TheTrader was left to expect a breakout one way or the other, even if when and how hard it would come could not be foretold.
Favoring Range-Bound Setups
When the altcoin market is at a standstill, TheTrader will still be looking for high probability trades in sideways or range-bound action; he finds these conditions to be far more predictable. His method is one of patience: by holding back until there are unambiguous signals like a liquidity sweep or a quasi-mode formation, he is able to keep risk to a minimum while seeing the best possible returns.
For those new to the game and put off by the noise of overly complex trading tools, his way of doing things makes sense. On Cryptology Key he has made it clear that an emphasis on market structure and a reliance on tried and true setups is the surest way to build a foundation for consistent performance.
Source — Cryptology Key: https://www.youtube.com/watch?v=WnXnVbh6lE4