Of the nature of things


Lavousier, father of classical chemistry, summarized the interactions of matter, chemically, in a simple but powerful phrase: In nature, nothing is created, nothing is lost, everything is transformed. She explains, in general, that in a chemical reaction there is no way to lose any element in the reaction.

Newton, father of classical physics, summarized the interactions of matter, physically, in another simple sentence: For every action, a reaction that is opposite in direction, in the same direction and of the same intensity, corresponds. It defines itself. in the same way, that mechanical work imposed on matter, has the same reaction in the opposite direction.

Kirchoff, the former of circuit analysis theory, summarized the electrical power interactions in this way: the sum of the closed loop voltages must equal zero and the sum of the currents entering the node must equal the sum of the currents leaving of that node. The summary is energy conservation, what is produced must be consumed.

It could be listed as many other examples of two situations that occur in the universe - non-quantum: energy conservation and interaction between matter in a proportional and unequal way.

The idea of ​​this demonstration is for the dear reader to understand how everything in the universe happens: balance.

In equilibrium there are no gains and losses, in equilibrium there is recombination.

When you see this reality - try it friend - within the financial market analyses, always paralleling the traded volume, you will notice that the graph area will suffer, in area, positive and negative periods that tend, at the end of a cycle, at zero.

In fact, many mathematical tools rely on this fact and the ups and downs of these graphs, with a horizontal line that goes above or below zero, serves to demonstrate how positive or negative the analysis period is accumulated.

It is important to note this indication due to a crucial issue that differs from the traditional market, from the digital cryptocurrencies: the algorithms are mathematical and follow this order of mathematical balance. This peculiarity removes information instabilities from the periods themselves. The only valid rule is the law of supply and demand!

Oftentimes, in chaos, it is necessary to leave and observe for a longer period of time.

In fact, before entering many positions, first you check the weekly trend, monthly trend, finally a large period, to identify the accumulated macro trend.

Having the macro trend accumulated, the micro trend, which can go up or down, will be highly influenced by the "bump" of the macro activity.

This look, combined with the amount of volume traded, will determine the recovery capacity of a bearish asset, or the downward trend of a bullish asset. The RSI tool nothing else delivers these moments in relation to the traded volume.

If the RSI is in the center, for example, it is not time to enter or exit the position, as there would be no way to predict which way it will go. If the RSI falls below the desired oversold limit, it is possible to say at what point to buy. If the RSI is entering the above overbought limit, the value for that time is about to start selling and therefore a window of opportunity to sell can be acquired.

The fact is that, according to RSI, the drop in bitcoin, just like a month and a half ago, was passing the top, now it is entering at least 70%.

These indications do not bring the exact moment to enter the position, however, they indicate that, soon, there will be a reversal.

The human aspect of this process is the following: a lot of people lost a lot with bitvoin and, now, they are selling to reduce losses. It's normal!

This undervaluation, however, allows many others to have, today, the chance they didn't have, to buy bitcoins for 60000. This is the nature of this game!

When more people return to buying - whether to recoup losses, or to play the game - the volume and trend of buying will be greater than selling.

The nature of things, whether in the universe or in cryptocurrencies!

 

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1x0Fx0 - 100
1x0Fx0 - 100

I like to read and to write and to see the life in all. I like to make mathematical analysys and to link with emotional responses, historical reviews and temporal actions. I like the similarity between matrix, SW, ST and the real life. TNKS ALL SUPPORT!


Bull, bear and the weather
Bull, bear and the weather

Understanding and controlling the bull, the bear, the weather and the heart: Reason and emotion. And everything that involves these two criteria within the financial market (traditional and digital). Also hoping to bring graphic and comparative analysis with knowledge of the market, history, philosophy and so on, for those who want to see this incredible web of opportunities to use their capabilities and obtain different gains not only in financial terms.

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