LotusXBT Trading | Crypto Trading Using Price Action | PDF

Traders will use price action and chart analysis to look for formations, trends, and patterns in market structure, from which they can create trade ideas. In fact, the core of technical analysis is price action itself, since it uses past prices to try and project future price movements.

Although fundamental data can play an important role in the valuation of assets, the price action of an asset is the final and most important consideration to be taken into account when making trading decisions. When all has been factored in and everything is taken into account, the price is the final barometer and most reliable guide to what’s really going on with an asset. Even when fundamentals override price action ‘expectations’, the price action itself will quickly adapt to the fundamental shift. The price of an asset is often ‘ahead’ of its fundamentals.

LOTUSXBT TRADING MODEL | CRYPTO TRADING USING PRICE ACTION

A guide to how I trade per the:

ICT Market Maker Buy/Sell Model

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ICT 2022 YT Mentorship Model

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Directional Bias & Trading Framework

Directional Bias is determined via the Draw on Liquidity (DOL)

The DOL will be either:

- An Liquidity Pool: Buy/Sell Side Liquidity

- An Imbalance

- The draw on liquidity for the most part is found on the Daily chart.

Cryptocurrency trading has grown in popularity in recent years, and traders are using a variety of strategies to profit from the volatile price movements of cryptocurrencies. One such strategy is price action trading, which involves analyzing an asset's price movements to identify potential trading opportunities. Price action trading is a popular method for trading cryptocurrencies because it allows traders to interpret an asset's price movement based on past price data. This approach is based on the belief that the movements of the cryptocurrency market reflect the underlying market sentiment, and by analyzing price data, traders can determine the direction of the market. 

One of the key aspects of price action trading is the use of charts, which allow traders to visualize an asset's price movements over time. Traders can use different chart types, such as candlestick charts or line charts, to analyze the price data and identify trends, support and resistance levels, and potential trading opportunities. Traders using price action trading often look for specific price patterns that signal a potential trading opportunity. These patterns can include bullish or bearish engulfing patterns, double tops or bottoms, or head and shoulders patterns. By identifying these patterns, traders can make informed decisions about whether to buy or sell an asset. 

Another key aspect of price action trading is the use of indicators. Although price action traders may use indicators, they rely primarily on price data to identify trading opportunities. Indicators can include moving averages, oscillators, or other technical indicators that may help traders identify potential entry and exit points. In conclusion, price action trading is a popular strategy that traders use to profit from the volatile price movements of cryptocurrencies. The use of charts, pattern recognition, and indicators allow traders to make informed decisions about trading. While it is not a foolproof strategy and there is no guarantee of profitability, price action trading can be an effective way to trade cryptocurrencies for traders who can dedicate the time and effort required to analyze price data and identify trading opportunities.