Jay prides himself on being a volume trader. He believes the volume tells the whole story. However, at the end of this module he teaches how traders can tie it all together. How to combine chart patterns, trend lines, candlesticks, fibonacci and yes volume to paint a picture with a 70-80% accuracy.
The Bitcoin Academy’s third module, presented by Jay, focuses on trading volume and price action, essential components of cryptocurrency trading, particularly Bitcoin. Jay begins by discussing volume trading, a topic highly requested by his audience. He explains the significance of volume in trading, and how it can be a beneficial tool for predicting price movements.
Further in the module, Jay delves into the analysis of chart patterns, highlighting the importance of understanding candlestick patterns and price movement to identify breakout moments in the market. He emphasizes the need to be patient in identifying the right entry and exit points. He also mentions the potential of Ethereum Classic and suggests that it may be primed for substantial upward movement.
Jay also brings attention to the accumulation phase where the market has considerable buying pressure. He highlights the importance of patience and caution during this phase, as the market may still be prone to swings, and sudden massive sell-offs may occur.
Later, Jay introduces the concept of “bullish volume,” a situation where there is increasing volume on up moves and decreasing volume on down moves. He reiterates that this counter-intuitive approach can be profitable if properly understood and applied.
He also discusses the accumulation and distribution phases in the market. These phases, he explains, involve substantial buying (accumulation) or selling (distribution) by major players, which significantly influence the price direction.
In his concluding remarks, Jay discusses the concept of “strong holders” and “weak holders” in the market. He emphasizes the importance of holding strong during market volatility and refraining from emotional decision-making. He ends by encouraging his audience to spend more time studying the market and carefully planning their trades.
The course, hosted by Jay, focused on debunking misconceptions about trendlines and moving averages. Jay mentioned that he doesn’t regularly use moving averages on his charts due to their tendency to create visual noise. Despite this, he noted that he uses a specific template occasionally.
He discussed the importance of long-term thinking in cryptocurrency trading and highlighted the danger of being swayed by emotions and short-term market fluctuations. Jay emphasized the need to understand and rectify one’s trading behavior, avoiding what he termed as ‘B and C decisions’—decisions made on the basis of emotion and short-term perceptions.
Jay cautioned that the increasing amount of capital in the cryptocurrency market would not always result in market growth. He alluded to the difficulty of converting large sums of money into cryptocurrency and suggested alternatives, such as investment in gold. He encouraged the participants to join a trading program, emphasizing that it should not necessarily be his own.
In the course, Jay also used various examples to illustrate potential cryptocurrency market trends, including possible bullish and bearish scenarios. He described how trendlines could be used to predict market movements and stressed the importance of recognizing and adhering to these lines. He then showed how volume indicators could be utilized in conjunction with trendlines to make more accurate predictions.
He stressed the importance of effective decision-making in trading, pointing out that a wrong trade can be costly and emphasized the need to cut losses and move on rather than waiting for a losing trade to turn around.
Towards the end, Jay demonstrated how to use moving averages on a trading chart, explaining their significance, and how they could indicate potential market movements. He concluded the session by presenting various examples of trendlines and moving averages in real-world scenarios, showing how they could have been used to make successful trades.
In this class of The Bitcoin Academy, Jay, the speaker, delves into the topic of indicators and how to integrate them into one’s Bitcoin trading strategy. He guides the students through various strategies, explaining how different indicators can predict price movements in Bitcoin and other cryptocurrencies. Jay focuses especially on the use of the Cloud Chart and the Relative Strength Index (RSI).
He begins by exploring the Cloud Chart, a type of charting technique developed in Japan, which Jay finds particularly useful for its built-in trend lines and Fibonacci retracements. He demonstrates the application of this chart on various cryptocurrencies, pointing out how the chart can provide valuable information about the market trend. However, Jay cautions that while the cloud chart can provide a general market direction, it is essential to consider other factors like volatility.
Jay also spends time discussing the potential of Litecoin, predicting its capability to follow a similar trajectory to Bitcoin. He further emphasizes the need to be ready to take advantage of price dips to buy cheaper, particularly if one doesn’t have a massive quantity of Litecoin.
Subsequently, Jay introduces the RSI, a momentum oscillator that measures the speed and change of price movements, as a valuable tool for spotting market divergences. He warns, though, that RSI, like other indicators such as the MACD, is a lagging indicator, meaning it relies on past data. Hence, it’s essential to pair it with real-time indicators such as volume for more accurate predictions.
Towards the end of the class, Jay underlines the significance of being cautious and taking profits when necessary. He recommends using trend lines, moving averages, volume, and the MACD to identify the best times to take profits. He reiterates that it’s crucial to utilize a variety of indicators in unison to make sound trading decisions, highlighting the complexity and the need for skill in navigating the cryptocurrency market.
In summary, Jay provides an in-depth overview of how to use different trading indicators, emphasizing that no single indicator should be used in isolation. He illustrates how a blend of these indicators can significantly improve one’s ability to make profitable trades.
Advanced Technical Analysis Bundle Course 1 thru 3 – $
Advanced Technical Analysis Bundle includes Trading On Volume & Price Action Course 1, Trendlines & Moving Averages Course 2 & Indicators & Tying It All Together Course 3
Course Discussion – 8 hours 13 mins: