Two overlooked indicators are warning traders of potentially large price increases.
Cointelegraph Pro Markets gives members access to multiple strategies to find weekly crypto winners.
This article describes how to use two ignored indicators, based on historical data, were able to warn traders of possible large price increases. These pointers can also be an essential tool for finding assets.
When these indicators are abnormally high, it is clear to take a closer look at the characteristic property to investigate the reasons behind the abnormal volume movement.
Before you dive in, it’s important to understand this point: Cointelegraph Markets Pro contains several, real-time, AI-driven indicators that give members multiple opportunities to access select assets before – or as – their prices rise. get up
These indicators can be used individually or together to make informed business decisions. And that’s why members can look forward to receiving winning notifications every week.
The trading strategy discussed below relies on these two often neglected calculations:
Below are eight easy steps to follow for this business strategy:
Step 1: Go to the scanner and sort the sentiment into positive Tweets.
Step 2: Look for properties with a positive tweet sentiment of 60% or higher.
Be sure to adjust the scan view first so that positive Tweets are viewed. Then click to add the sentiment column to the Positive Tweets view:
Positive Tweets sentiment, by the way, is the percentage of positive tweets about a cryptocurrency in the last 24 hours. The higher the better, but the goal is at least a 40%-60% increase.
Step 3: Search for assets with at least 200-400 tweets in the last 24 hours.
Ignore all high-sensitivity signs of very few tweets, because these properties are likely to give fakes. The higher the number of tweets, the more likely something good will happen to the asset price.
Step 4: Look for properties with a Tweet volume that is 50% or more of the average.
Tweet vs Avg measures how much tweet volume the asset has today compared to the 30-day moving average, so a value of 50% means that the asset’s tweet volume today is 50% higher than the day’s average.
This shows an unusually large increase in tweet volume. This type of increase tells us that something is going on with this property, which can lead members to the possibility of breaking the price.
To investigate these symptoms, one needs to confirm the warnings by following these steps:
Step 5: Look for price divergence (flat or downward movement on the chart).
Let’s look at an example of Gitcoin (GTC):
Positive Tweets sentiment above 60%? Check.
At least 200-400 tweets in the last 24 hours? Check.
Tweet volume at least 50% higher than average in the last 24 hours? Check.
Now let’s see where the property prices are going. It’s best if it’s flat, angled, or otherwise tapers down a bit.
Step 6: Make sure there is enough trading volume!
Gitcoin is a small-cap altcoin, so it can be difficult to find a liquid exchange to trade this asset. With few altcoins and many other illegitimate assets, trading volume is volatile and inconsistent – so be careful about finding and trading partners.
A minimum trading volume of around $200,000-$400,000 depending on the pair available on a particular exchange is recommended to get the best liquidity, but for smaller altcoins like GTC, the trading volume will be much smaller.
Step 7: See what the buzz is about on Twitter.
Go to Twitter and find out what’s in the treasure! Maybe there’s an update, maybe it’s a protocol change, or maybe the company behind the asset has completed fundraising.
Read the topics. Make it happen
Whatever happens, check without guessing. This is part of the due diligence process before taking the final step. This information is necessary to determine whether the transaction is made, secured and monitored, or forwarded.
Step 8: Set a limit order to take profit at a comfortable rate of around 5%-10%.
After checking the warnings by checking the steps above – and after -, do not forget to set up the business to make a profit. To hit the current inflation rate, an easy number to use is 10%, but that is up to each member to decide. By setting a restraining order in s