the price goes to a top--->ok, when to sell? where to buy-back in ?

lucacrebbe

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Jun 26, 2017
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Those are the greatest questions of all.
Let's account for the btc example:
https://i.ibb.co/qyC979t/btcstopdump.png
it pumped to 19k. Ok. When to sell?
Then it dumped. How to know where to buy back in? In the link there's the chart showing where it dumped to.
My idea is that in a flash sell off (after a shor-term FOMO) the price dumps to the nearest buy-accumulation zone, which is the price in which the most of the ''early'' buyers in the first palce before the pump (so they will hold the lines).
These are my questions
  1. Is this theory correct?
  2. How to identify those buy-accumulation zones?
  3. How to know ''when to sell' ?
 

Enivid

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1. Your theory can definitely explain a part of movement in BTC/USD, but believing that at any point in time there is just a single reason for some price movements would be rather dogmatic. There are always many factors at play - lots of traders participate in this market and each of them is driven by their own motivations.
2. Why not to look at the chart + volume? Peaking green volume - that's where there was a lot of buying - or more accurately, the bulls were willing to buy at an increasing price. It doesn't necessarily mean that those same price levels will induce the same buying behavior next time, but for some of the traders, they probably will.
3. There is no universal answer to this. This time, the previous ATH served as the strong resistance level, which pushed the price down. Next time, it could be some news (even something stupid like China banning Bitcoin for Nth time). Who knows?
 

danielbro

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There is no proper knowing when to sell, because in financial market, everything is volatile, the chance of expecting bull can be easily reversed and vice a versa. Maybe it can help if there is daily report or particular news (like what Enivid said) influencing them.