26.01.22 CryptoCat trading signals and diary

By SirK133 | CryptoCat | 26 Jan 2022

This is the cryptocurrency market outlook, based on cocktail of purely technical indicators that I use. This entails, that bullish or bearish signals given in this series do not portray my sentiment towards any particular project. I try to write this diary for myself, as it helps to maintain trading discipline, but I hope you as my reader can also benefit from it (even if it's just a laugh at my fails). I plan to publish daily, but probably not on Tuesdays, and weekends might have some spotty coverage as well.  And by any means this is no advice, financial or otherwise.

The system consists of: 
- 3 indicators, handpicked from literally hundreds I've tested. Each offers different sensitivity, each of them quite accurate by itself, together meant to produce an highly accurate signal for entry and an early warning for open trades,
- 3 groups of moving averages - a battle-tested combination from forex markets, for the purpose of getting a bigger picture of the market. They indicate how cautiously I will approach signals from indicators,
- H4 timeframe - I would prefer daily, but I write my posts "in the evening" meaning usually around 20:00 UTC (that's still kinda late in my timezone), I need closed candles or I risk that indicator will change value after I post and before closing of the daily candle. I don't need to get rich tomorrow, I prefer trading with less noise. Crypto being volatile as it is on lower timeframes is subject to random pumps and overreactions of the market that easily throw technical indicators off track - that is costly when using leverage.

So far so good - as a candle closed at $37310 last indicator flipped bullish, so despite recent fall (as I write this price reversed from $38830 to around $36750 in a very dynamic manner), from the indicator standpoint the signal seems strong and I have no impulse to exit. Unfortunately, if we switch from H4 to D1 the downtrend looks intact, so sooner or later one of this signals has to give and statistically higher timeframe wins more often.
BTC long position maintained.

Last indicator showed a bullish signal at around $2460 and price hiked upwards since then, but recent fall brought it back to similar level right now. Since I have an open BTC position and the market right now follows BTC quite tightly I don't want to add another bet on this move. 
No trades taken.

Here also all indicators flipped bullish, but curiously the least sensitive one flipped first and still wont budge. If I've had taken a long position after all flipped bullish (I was a bit torn on this 2 days ago) I would be in a slight loss right now. 
No trades taken.

Cardano seems to be lagging behind, flipping 2 indicators bullish only today between morning and noon, still failing to flip the last one. While it's not a technical observation this might indicate that ADA is still out of fawor from the crowd with pretty low sentiment.  
No trades taken.

Chainlink with recent moves that look more sideways than upwards still managed to trigger 2 of the indicators as bullish and throw the last one into a state of confusion printing a changing signal way to often. 
No trades taken. 

I do hope for more substantial reversal, but on D1 timeframe everything is still bearish all over the board for the coins mentioned above. I plan to look for some early opportunities in emerging ecosystems since they are less crowded now and I wonder what sector is most promising. I would say (as much as I might not like it) that metaverse and gaming are ones that have highest chance to move in a independent way of the rest of the market. That also points in the direction of NFTs since both sectors love them so much, but not just any NFTs. Digging through all the new things on different L1s seems like a big task, weekend will be busy probably.

May your coins be like cats - eager to climb and unable to come down,

All tips go to cat treats and catnip :) 
Zen Faucet - dropping once a day, straight to your wallet, without min. withdrawal or transaction fees
Farsite - game with NFTs that hold value, you can read about it HERE
This is not a financial advice – I’m no financial adviser, nor is this a legal advice – although I’m a lawyer. This is no advice at all, seriously, don’t take advice from random cats – the Internet is full of them! DYOR!

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Lawyer, analyst, crypto enthusiast, gamer, poet. I am interested in everything that makes up our world and how it is related.


My cat so often stomps the keyboard while I do my crypto research, I might as well make him a co-host here.

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