Tone Vays At Bitcoin South: Bitcoin Trading – Profiting in Turbulent Times

Tone Vays: Bitcoin Trading – Profiting in Turbulent Times

Presented at Bitcoin South; Speakers list and videos

Talk Synopsis:

Bitcoin Investing can take on many forms. Most people that have made the choice to acquire bitcoins will most like simply hold on to it until they see something they would like to trade them in for. Others however, look to actively trade it for a chance to profit within this new asset class. In a truly free market

There is plenty of room for both and while many look down upon traders, you have to remember that serve several key functions. Fist they create the mechanism by which the world identifies the value of an asset and second they provide a standard way by which an average person can acquire these bitcoins. Yes traders may sometimes try to manipulate and move the market, but it is a small price to pay as the alternative of trying to determine a price without an exchange is a recipe for disaster.

Technical Analysis as introduced in the presentation above is not magic or guesswork. Many people have sustained their life by mastering a few key aspects, while others find it way to complicated. It is simply a tool and knowing how to use it properly can provide some guidance and structure to what may appear to be a random walk. No two traders have to interpret what they see on the chart the same way, but they do have to be consistent with what has worked for them in the past and stay away from mistakes they learned over the years.

This presentation will show you the basics that professionals know like the back of their hand and it’s encouraged to look up each individual topic one at a time and slowly get comfortable with the basics. You will be surprised how quickly you will be able to look at the following chart on a random website, and see what the other person sees. You may not agree, but you will understand why they feel the price will move a certain way.

The Chart above is suggesting that we are still on a downtrend.

Both the 50-day Moving Average (Blue) and the 200-day Moving Average (Yellow) are pointing down. There was one indication of a reversal since mid summer when we closed above the 50-day, but it was short lived and created a pattern called the Descending Triangle as prices once gain closed under that Moving-Average. When prices break out of triangle pattern they tend to hit certain targets.

As you can see the previous two targets indicated by ‘dashed’ black arrows were reached pretty easily. The current target sits at $290 and at the moment, there is no indication that this target will not be reached. The upside at the moment is limited and if we do move up, there is a high probability that hitting the 50-day Moving-Average currently around $355 is a good opportunity to sell some bitcoins in hopes of buying them back a lower price. You will also notice the momentum indicators blow and the RSI is suggesting the upside is also limited as we approaches the Green Trend Line.

Of course all that above is speculation and can be proven completely inaccurate by price movements tomorrow. But there is a reason why certain patterns are kept an eye on and that’s because they tend to have consistent outcomes more than 50% of the time. And that is all a professional trader needs, a better than a coin flip odds as long they stay consistent and true to what works for them.

A good educational source to get you started can be found at StockChart’s Chart School.

You can also follow me on Twitter at @Tone_LLT for updates and Analysis article links.