One of the reasons I like to aggregate ideas of top crypto traders is that it helps me to get as unbiased an opinion of the market as possible. As a trader, one must be open to counter arguments for entering a trade. As a matter of fact, for any trade you enter, there is always some way of pointing out one if not several reasons for why that trade is a bad idea.
You job is to take into account the reasons for and against your trade and see if the reasons for entering that trade are still better than the reasons for not entering it.
Links to all the traders on this page are in the resources section at the end, I suggest you check them out!
Top Crypto Traders Insights
What I mentioned above can be well illustrated with what is currently the most liked and viewed trading idea on Tradingview.com as seen below.
MarketMinds on Tradingview
The bear flag is a pattern which follows after a bearish move like the one we saw when bitcoin fell from $10,070 to $8117. When the market is trending bearishly with lower lows and lower highs, traders often look to enter at some point during the retrace of that move, known as a bear flag.
Bear Flag
The bear flag is a retracement of a bearish move and theoretically leads to another move down. Therefore it is a bearish continuation pattern as shown above.
The two sloping lines in the chart above by MarketMinds on Tradingview display the price action within and outside the borders of the bear flag. It is common to draw the support and resistance lines at the close of candles but some traders draw them at the extremes (highs and lows) of candles. The important thing is to be consistent when drawing a channel. If one side of the channel has a support drawn on the closes of the candles, then the other side of the channel must also be drawn along the closes.
The interesting thing which explains my point in the introduction about counter arguments for any specific trade is that MarketMinds also posted the inverse head and shoulders pattern seen below.
Inverse Head and Shoulders (IHS)
This is a bullish pattern which upon completion suggests the start of a bull market.
Notice how we have both a bearish pattern in play (the bear flag) and a bullish one (the IHS).
When shorter time frames like this are showing conflicting information, it is common for traders to zoom out to larger time frames before deciding on a trade which is demonstrated by our next top trader's insight.
Zooming Out To Higher Time Frames with @Tradermayne
@Tradermayne tells his fans that he is not interested in the LTF (lower time frame) due to the noise it is emitting. You may be thinking that the lower time frames are playing some obnoxious heavy metal music to annoy traders. That would be funny but this is a different kind of noise :)
Noise in this context refers to randomness and inconclusive information. What he means is that the lower time frames offer him no actionable trading information.
That's why Mayne chooses instead to do what many beginning traders fail to do - refrain from overtrading by staying out of the market until a good trade opportunity presents itself.
Is it going up or down. Just tell me!
Despite the contradicting signals of the market, I'll satisfy you with the results of this tweet by Bitcoin Jack where he asks his followers which direction they think the market will head next. With an impressive 3155 votes, the consensus is slightly in favour of the bears:
That's it for today my fellow crypto traders. Hope you enjoyed this second edition of Top Trader Insights, I look forward to writing the next one for you guys.
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This article does not constitute financial advice. Trading presents financial risks.
