You can’t. It’s gambling.
Technical analysis is analysing the past to predict the future and there is extremely weak evidence to say that it’s possible to make money in the long term.
Prices of assets don’t move based on charts, they move based on fundamentals.
if you plot the price of ice cream on a graph you can establish ranges of values etc but it’s things like milk production and hot weather which affects the price, not what the chart is showing historically.
Sure you can. It's not always going to be 100% accurate but over the course of many months of studying and doing TA, I have not seen many instances where it fails. Plus using trading indicators such as Traders Reality help quite a bit as do things like MACD and RSI when used in conjunction with what you see.
There are two main instances when I short.
1) When a token has risen 15+% on the day. The next day is almost always red. Almost without fail. Confirmation is MACD gets ready to cross over negative and RSI is overbought. Also, typically the token peaks late morning (EST) and then falls in the afternoon/evening hours in these scenarios.
2) When you see multiple vectors on the 1HR or higher timeframe that don't progress and it prints a reversal candlestick. Those almost never fail.
Nothing goes up forever, nor down forever. What goes up, must come down...even if it is only for a short time.
You can also trade long vice versa...when vectors don't progress down further on multiple candlesticks and the MACD is trending positive and RSI is oversold.
I don't trade Willy Nilly, I look for very specific scenarios that are very high probability trades.
Sometimes I get stopped out, but it doesn't happen very often. I'm willing to lose a few hundred dollars to make many thousands of dollars especially when I am right 70+% of the time.
I'm not interested in what "evidence" suggests. I do what I know works for me.
