Hello,
For momentum trading a coin like Fartcoin, the momentum is extremely difficult to measure on the small scale time frames. For example, the 1 minute, 5 minute, 10 minute, and even 30minute time frames are all undependable since the momentum of the price could go any other direction at any moment.
However, don’t be discouraged to trade in these time frames, my suggestion here is to increase the probability of successful momentum trading through confident, reliable, and emotionally detached trading. By analyzing larger timeframes such as the 4 hourly timeframe, the MACD and other indicators such as RSI, the VWAP, we could be more sure the overall price is heading in the direction we’d like. Taking this crucial step avoids the panic selling of a coin in the short-term when in the big picture, things are looking more than terrific.
The MACD indicates when a momentum is positive, slowing down, and negative. By looking at the 4 hourly timeframe, we could be sure that once a negative momentum starts slowing down, chances are higher that it will switch to a positive momentum. I have changed the colouring of my MACD so it represents the colours of a traffic light. Red — don’t trade (lowest probability of making profit). Yellow — the momentum could change (if from red to yellow then price is going up; if green to yellow, price is going down). Green — trade here (greatest probability to make profits).
Once confirming that the 4hourly is in a good place, you could be rest assured that when whiplash and sudden price dumps occur, you could hold more conviction to continue on holding, rather than panic selling and then an hour later, you have FOMO because the price moved incredibly higher.
In order to enhance the prediction of memecoins, look into the total market and analyze it at the greater time-frames as well. I recommend higher time-frames the the 4hourly since the total market has a lot more data than the life of Fartcoin which is only a few months old. If the momentum is looking good, you could be more confident with your trades.
This concludes my ideas on momentum trading memecoins and how we could leverage the best case use of these coins through a grounded trading technique such as momentum trading. Momentum trading doesn’t try to predict the price, it at the current probability of momentum.
Cheers!
-RanMcdon
For momentum trading a coin like Fartcoin, the momentum is extremely difficult to measure on the small scale time frames. For example, the 1 minute, 5 minute, 10 minute, and even 30minute time frames are all undependable since the momentum of the price could go any other direction at any moment.
However, don’t be discouraged to trade in these time frames, my suggestion here is to increase the probability of successful momentum trading through confident, reliable, and emotionally detached trading. By analyzing larger timeframes such as the 4 hourly timeframe, the MACD and other indicators such as RSI, the VWAP, we could be more sure the overall price is heading in the direction we’d like. Taking this crucial step avoids the panic selling of a coin in the short-term when in the big picture, things are looking more than terrific.
The MACD indicates when a momentum is positive, slowing down, and negative. By looking at the 4 hourly timeframe, we could be sure that once a negative momentum starts slowing down, chances are higher that it will switch to a positive momentum. I have changed the colouring of my MACD so it represents the colours of a traffic light. Red — don’t trade (lowest probability of making profit). Yellow — the momentum could change (if from red to yellow then price is going up; if green to yellow, price is going down). Green — trade here (greatest probability to make profits).
Once confirming that the 4hourly is in a good place, you could be rest assured that when whiplash and sudden price dumps occur, you could hold more conviction to continue on holding, rather than panic selling and then an hour later, you have FOMO because the price moved incredibly higher.
In order to enhance the prediction of memecoins, look into the total market and analyze it at the greater time-frames as well. I recommend higher time-frames the the 4hourly since the total market has a lot more data than the life of Fartcoin which is only a few months old. If the momentum is looking good, you could be more confident with your trades.
This concludes my ideas on momentum trading memecoins and how we could leverage the best case use of these coins through a grounded trading technique such as momentum trading. Momentum trading doesn’t try to predict the price, it at the current probability of momentum.
Cheers!
-RanMcdon
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.