[00:16] == theoretical [65a24d0b@gateway/web/freenode/ip.101.162.77.11] has joined #theoretical
[00:16] == mode/#theoretical [+ns] by herbert.freenode.net
[00:17] == tcherkin [4dbba404@gateway/web/cgi-irc/kiwiirc.com/ip.77.187.164.4] has joined #theoretical
[00:17] == YesYes [5ac3ad52@gateway/web/freenode/ip.90.195.173.82] has joined #theoretical
[00:17] == wheatclove [~wheatclov@50-77-133-244-static.hfc.comcastbusiness.net] has joined #theoretical
[00:17] == thebroseph [~AndChat69@186.188.236.42] has joined #theoretical
[00:17] <thebroseph> Sup
[00:18] <@theoretical> Hey there :-) how is everyone today
[00:18] <@theoretical> I thought we would just have me and you broseph but some lurkers love to join yay!
[00:19] <thebroseph> Awesome
[00:19] <YesYes> very good
[00:19] <YesYes> i dont mind some few tips
[00:19] <wheatclove> Yeah im at work but i wanna read this later
[00:20] == Danoded [520dcc51@gateway/web/freenode/ip.82.13.204.81] has joined #theoretical
[00:20] <tcherkin> just curious to see what is TA :)
[00:20] <@theoretical> Ok
[00:20] <@theoretical> TA is technical analysis
[00:21] <@theoretical> What coin would people like me to look at first so we can start by learning MA and EMA
[00:21] <thebroseph> How about a slow moving currency ?
[00:21] <@theoretical> perfect
[00:22] == Valexus [~Valexus@gateway/tor-sasl/valexus] has joined #theoretical
[00:22] <thebroseph> Then we can move to more volatile ones
[00:22] <@theoretical> I will keep this in crypto coins.  So i would say the least volotile of alt currencies are either dead ones or old ones
[00:23] <thebroseph> How bout the rise and death of dogecoin ?
[00:23] <YesYes> lol
[00:23] <thebroseph> A case study by theoretical
[00:23] <@theoretical> Ooooooh I like i like
[00:23] <@theoretical> Doge it is
[00:24] <@theoretical> what markets trade doge
[00:25] <@theoretical> https://bitcoinwisdom.com/markets/bter/dogebtc
[00:25] <YesYes> mintpal
[00:25] <@theoretical> This is the oldest history on wisdom
[00:25] <@theoretical> Now to start I will explain about EMA and MA these are lovely little analysis tools that help to look at the price over a range of candles and give us a possible point of support / resistance
[00:26] <@theoretical> MA is called a moving average
[00:26] <@theoretical> EMA is called a exponential moving average
[00:26] <@theoretical> The difference is that the EMA weighs the newest history heavier then the previous and is more up to date
[00:26] <@theoretical> In Crypto i never use MA as Crypto moves to fast
[00:26] <@theoretical> So i always stick with EMA
[00:27] <@theoretical> Now going into bitcoin wisdom pull down the settings and hit indicator parramters
[00:27] <@theoretical> There are a lot of magical numbers you can use for EMA / MA
[00:27] <@theoretical> But the ones i find to be the best for trading on most time frames are
[00:27] <@theoretical> 21 50 100 200
[00:28] <@theoretical> Now what these numbers stand for is the amount of candles it takes into consideration and it uses there last closing price and averages out the price.  so 21 is the last closing price of the 21 candles added together and then /21 with a heavier weighting towards the newer history
[00:28] <@theoretical> 50 is the last 50 candles and so on so forth.
[00:29] <@theoretical> This setup of 21 50 100 200.  Will help you find key levels of support and resistance.  There are other setups you can use.  say with 6 13 21 50  To find magic crosses.  But thats for another lesson
[00:29] <@theoretical> So go on and plug those numbers into the graph
[00:29] <@theoretical> then change your time frame to 1D candles
[00:31] <YesYes> do i put the 21 50 100   or just one of those numbers?
[00:31] <@theoretical> all of them
[00:31] <@theoretical> as there are 4 spaces in indicator paramters
[00:31] <@theoretical> next to MA/EMA
[00:31] <YesYes> ok
[00:31] <@theoretical> And imo keep them as the ones you use now will help whenever you look at wisdom :-)
[00:31] <thebroseph> Awesome. All 4 show doge falling!
[00:32] <@theoretical> yes they do indeed
[00:32] <thebroseph> Much sadness
[00:32] <@theoretical> much resistance
[00:32] <Danoded> theo your amazing
[00:32] <@theoretical> <3
[00:32] <Danoded> I don't know many other people who would devote there time to teaching people about charts
[00:32] <Danoded> You sir are amazing
[00:32] <thebroseph> Indeed he is !
[00:32] <@theoretical> So as we can see where we are now
[00:33] <@theoretical> dodge is following that first line closely and constantly try's to push above it
[00:33] <thebroseph> And each time it's being hammered down
[00:34] <thebroseph> Like lol no you shall not pass
[00:34] <Valexus> how do we know if a reversal is going to happen?
[00:34] <@theoretical> http://awesomescreenshot.com/08f38vu273
[00:35] <@theoretical> Just drew 2 things that drew my eyes and you can look at closely on your screens
[00:35] <@theoretical> Now to know a reversal is going to happen
[00:35] <@theoretical> This is possible using just EMA and MA/s
[00:35] <@theoretical> Though hard
[00:37] <@theoretical> http://awesomescreenshot.com/0bc38vuz96
[00:38] <@theoretical> There is 2 ways you can see reversal ^^
[00:38] <@theoretical> Looking for those magic Crosses or Death Crosses
[00:39] <@theoretical> obviously the longer the time frame the stronger the cross or support those lines offer.  So if we went into a 30 min graph.  All of the lines would be almost on top of each other because the price hasn't changed that much with 30 min candles
[00:39] <@theoretical> So perspective is everything!
[00:39] <Danoded> so basically when the 21 line passes the 50,100 and 200 lines that's the end?
[00:39] <Danoded> under
[00:39] <@theoretical> Yup :-)
[00:39] <@theoretical> Well at least the end of the uptrend!
[00:39] <@theoretical> Doge may have another day
[00:40] <Danoded> That's brilliant thanks so much!
[00:40] <@theoretical> Now how else to tell reversal
[00:40] <@theoretical> Using only EMA / MA
[00:40] <Valexus> awesome!
[00:40] <thebroseph> I feel like neo being explained what the matrix is
[00:40] <Danoded> loool
[00:41] <Danoded> So from the cloak chart it looks like it "should" be ready for an uptrend?
[00:41] == Pico_de_amaya [~Pico_de_a@ip68-106-224-213.ph.ph.cox.net] has joined #theoretical
[00:41] <Danoded> looking at the 30 min chart
[00:41] <@theoretical> http://awesomescreenshot.com/02f38vvw12
[00:41] <@theoretical> 30 minutes aren't great for EMA unless looking for short term trends.
[00:42] <@theoretical> 1hr + are best
[00:42] <Danoded> thanks
[00:42] <@theoretical> now i will pull up drk chart to show you some awesome things with EMA
[00:43] <@theoretical> https://bitcoinwisdom.com/markets/mintpal/drkbtc
[00:43] <@theoretical> using the same paramters change it to 6 hour time frame
[00:44] <Danoded> ok
[00:44] == Cryptolover [~Cryptolov@207.Red-83-44-18.dynamicIP.rima-tde.net] has joined #theoretical
[00:45] <thebroseph> Seems like one of the lines tried to cross while the others stayed put and so it bounce back down
[00:45] <@theoretical> http://awesomescreenshot.com/0f538vwf1a
[00:45] <@theoretical> Yes ^^ exactly
[00:45] <@theoretical> I didn't see that till just then!
[00:46] <@theoretical> So some people would have bought thinking there would be that cross instead it just bounced off of it! -doh- to any buyers
[00:46] <thebroseph> Awesome !
[00:46] <@theoretical> So there is a hint.  Wait for confirmation of the 21 crossing the 50 line instead of buying before it.  Its better to be in a smaller winning trade then a losing trade always!
[00:47] <@theoretical> https://bitcoinwisdom.com/markets/mintpal/cloakbtc look at cloak on 6hr time frame with those EMA
[00:47] <@theoretical> You now just with this one tool have a brand new pair of eyes :-)
[00:48] <thebroseph> Oh shit it's going up
[00:48] <@theoretical> So thats the EMA.  Honestly I depends on this tool so much to find my long term support lines and know where to buy
[00:48] <YesYes> man thats something new for me  you sir are amazing
[00:49] <Danoded> +∞
[00:49] <YesYes> im gonna have to try this out alot
[00:49] <Valexus> how do we predict what the 200 EMA will be as it is going up?
[00:49] <thebroseph> Theo let's say the trend says one thing
[00:49] <thebroseph> And then huge news drop
[00:49] <Pico_de_amaya> ma'am
[00:49] <thebroseph> What do
[00:49] <Valexus> 200 EMA for support i mean
[00:50] <Danoded> So it's mainly dependent on the 21 line staying above the rest of the lines?
[00:51] <@theoretical> We watch the 200 EMA and change our orders when it changes every new candle
[00:51] <@theoretical> Yes danoded and bounces are also very important
[00:51] <@theoretical> As thebroseph saw in drk's 21 bounce off 50
[00:51] <@theoretical> Well broseph it depends on the news
[00:51] <@theoretical> If there was hype around the news already
[00:51] <Danoded> Alright thanks
[00:51] <@theoretical> I.E POSA open beta
[00:52] <@theoretical> Then i would say its already priced into the graph to some degree
[00:52] <@theoretical> Because it was already known about to the investors
[00:52] <@theoretical> Where as say it was some news like OMG POSA WILL NEVER WORK.  That is new news and you have to adjust to NEW NEWS
[00:52] <@theoretical> Where as hyped news / rumors is usually priced in, to some degree
[00:53] <@theoretical> Does that explain thebroseph
[00:53] <thebroseph> Yeah basically the graph can only work with the information already out there
[00:53] <@theoretical> And even with the new news of say POSA beta in public,  We can still graph as we then use other tools to find a high or low
[00:53] <thebroseph> If new information exists that couldn't be known by most traders then we must read just
[00:53] <thebroseph> Readjust
[00:53] <@theoretical> Yup!
[00:53] <@theoretical> Readjust
[00:53] <@theoretical> http://awesomescreenshot.com/0dd38vxkd5
[00:54] <@theoretical> Graphs move in patterns always
[00:54] <@theoretical> There are a lot of patterns to learn, from double tops to tripple bottoms Head an shoulders, teacups.  Bull flags Bear pennants
[00:54] <Valexus> this is great theo..
[00:54] <@theoretical> Learn these in your own time as it takes way to long for me to find a example for all of them
[00:55] <@theoretical> But i am happy to work through any new patterns you see in another time (just PM me) and tell you what i see
[00:55] <Danoded> this is truly amazing
[00:55] <@theoretical> The best place to get a lot of information about this is investopedia.com i believe its called
[00:55] <Valexus> i saw the 200 EMA on cloak hourly corelates well with the fib you mention earlier
[00:55] <@theoretical> 1 sec il get the link
[00:55] <@theoretical> Hehe yes valexus ;) and if 2 or more of our tools say this area is important then you damn well better bet it is
[00:56] <Danoded> So you should never try and maximise
[00:56] <Danoded> always be in the upper middle
[00:56] <Danoded> or lower middle
[00:56] <@theoretical> http://www.investopedia.com/university/charts/
[00:56] <thebroseph> Awesome
[00:56] <Danoded> to have guaranteed profits
[00:56] <@theoretical> You should try to maximise but only when your sure!
[00:56] <@theoretical> But yes thats the idea and the better you are at trading the earlier on you can be sure
[00:56] <thebroseph> Oh danoded yeah because that would mean you are not operating on fringe possibilities
[00:57] <Danoded> Thank you both :)
[00:58] <thebroseph> Theo for press
[00:58] <@theoretical> We ready to move on to Fib lines?
[00:58] <thebroseph> Yes
[00:58] <@theoretical> Fib lines are the best tool for swing trading (trading the movements) and also for calculating the next high
[00:59] <@theoretical> https://bitcoinwisdom.com/markets/mintpal/cloakbtc
[00:59] <@theoretical> 4 hour time frame
[00:59] <Danoded> Yeah really need to know about fibs
[01:00] <@theoretical> Ok il be 1 min need to do a few images to show you how to do this
[01:01] <@theoretical> http://awesomescreenshot.com/0e438w0w62
[01:03] <@theoretical> http://awesomescreenshot.com/03138w169c
[01:03] <@theoretical> Draw fib lines starting from the top of the last move to the bottom of the last move
[01:03] <@theoretical> And with that We could have calculated the Top of this bubble to within 3-5%
[01:04] <thebroseph> Aw man can't do this cause I'm on my phone :(
[01:04] <@theoretical> and also the true bottom!
[01:04] <@theoretical> you can broseph but you just have to get it very right :-) i do it on my iphone sometimes lol
[01:04] <@theoretical> Otherwise just watch my screenshots and learn for later :-)
[01:05] <Danoded> can't zoom out on my laptop
[01:05] <Danoded> is there a trick to doing it
[01:05] <Danoded> ?
[01:05] <@theoretical> mouse wheel
[01:05] <@theoretical> or two fingers on mouse and push up / back
[01:06] <@theoretical> mouse area thing lol
[01:06] <Danoded> not doing anything:(
[01:06] <Danoded> screw it I'll get a mouse
[01:06] <@theoretical> :'(
[01:06] <@theoretical> ok il wait :)
[01:07] <Danoded> ok got it :)
[01:07] <Danoded> just need to do the fib
[01:08] <@theoretical> http://awesomescreenshot.com/01638w2be5
[01:09] == Pysiek [~pysiek@unaffiliated/pysiek] has joined #theoretical
[01:09] == cashmen [cashmen@gateway/shell/bnc4free/x-exqtcndzatygmddl] has joined #theoretical
[01:09] <@theoretical> so those are fib lines.  always use them to see where we are in terms of the movement.
[01:10] <Danoded> how do I get the straight fib line before the extensions?
[01:10] <@theoretical> Use it from the top of the move
[01:10] <@theoretical> to the bottom of the move
[01:10] <@theoretical> http://awesomescreenshot.com/03138w169c
[01:10] <Danoded> ok thanks
[01:10] <@theoretical> like that
[01:10] <@theoretical> where the rectangles are the points i used
[01:11] <Valexus> wait, what was the estimate trading used for?
[01:11] == ChrisPR [7c7abc0b@gateway/web/freenode/ip.124.122.188.11] has joined #theoretical
[01:11] <ChrisPR> hi
[01:11] <@theoretical> Hey chris
[01:11] <Danoded> I just can't seem to do it
[01:11] == NSA360 [~NSA360___@93.102.168.82.rev.optimus.pt] has joined #theoretical
[01:11] <ChrisPR> This will be about the right opening?
[01:11] <@theoretical> We are just about to move on from Fib to Indicators so should be perfect
[01:11] <Danoded> do I use the snap freelines?
[01:12] <@theoretical> Are you using fib retracment? or fib extension
[01:12] <@theoretical> Not the fib fan
[01:12] == Mountaineer [~jam@unaffiliated/mountaineer] has joined #theoretical
[01:12] <@theoretical> see here for the latest fib lines
[01:12] <@theoretical> chrome-extension://alelhddbbhepgpmgidjdcjakblofbmce/edit.html
[01:12] <@theoretical> whoops
[01:12] <@theoretical> http://awesomescreenshot.com/01638w2be5
[01:12] <Danoded> fib extensions
[01:12] <@theoretical> I use the 346K top and the 160k bottom
[01:13] <@theoretical> with extensions
[01:13] <Danoded> but I used the snap free line to draw one diagonal line from the start of the pump to 160k
[01:13] <@theoretical> go top first left click then bottom left click
[01:13] == dasource [dasource@unaffiliated/dasource] has joined #theoretical
[01:13] == alty [~alty@unaffiliated/alty] has joined #theoretical
[01:13] <@theoretical> Are you usiing bitcoin wisdom?
[01:13] <dasource> ^
[01:13] <Danoded> yes
[01:13] <@theoretical> Welcome welcome welcome!
[01:13] <alty> hey
[01:14] <thebroseph> Oh shit
[01:14] <alty> always good to pick up some tips and ticks ;)
[01:14] <dasource> im all ears theoretical
[01:14] <@theoretical> Just keep practacing trying to get the tops and bottoms danoded.  I think its about time we moved on to Indicators.
[01:14] <thebroseph> Theoretical where in bitcoin wisdom do I click for "alty speaks"
[01:15] <Danoded> yeah just move on to indicators
[01:15] <@theoretical> As i only have 30 minutes left and indicators have a lot to go through
[01:15] <thebroseph> Fibonacci Alty Indicator
[01:15] <Danoded> we can talk about fibs later
[01:15] <@theoretical> PM me your problems and i can help more later :-)
[01:15] <Danoded> yeah
[01:15] <@theoretical> sticking with cloak coin
[01:15] <dasource> how do I make my bitcoinwisdom look like yours theoretical
[01:15] <@theoretical> https://bitcoinwisdom.com/markets/mintpal/cloakbtc
[01:16] <@theoretical> I am starting from a blank slate here :-) so it will other then the programed EMA
[01:16] <@theoretical> go to 4 hour time frame
[01:16] <@theoretical> and in settings click MACD indicator
[01:16] <dasource> yuo
[01:16] <thebroseph> K
[01:17] <@theoretical> This stands for a Moving average Convergence / divergence
[01:17] <Danoded> ok
[01:17] <dasource> okay
[01:17] <ChrisPR> k
[01:17] == gatti_ [~BP@72.29.249.249] has joined #theoretical
[01:17] <@theoretical> This indicator is used to find the momentum of the Security
[01:17] <@theoretical> And it has 2 lines that are drawn on it as well as upwards spike's and downwards spikes
[01:18] == welovetomine [~Worldcoin@unaffiliated/welovetomine] has joined #theoretical
[01:18] <welovetomine> howdy
[01:18] <@theoretical> Using this indicator we can try and look for possible reversal points because either A) the upwards momentum is dying so a reversal downwards
[01:18] <@theoretical> Howdy!
[01:18] <@theoretical> We are just doing MacD on https://bitcoinwisdom.com/markets/mintpal/cloakbtc
[01:18] <@theoretical> 4 hour
[01:18] <@theoretical> Or of course B) the downwards momentum is drying up and a reversal to the uptrend begins
[01:19] == Googs84 [~Googs84@pool-98-113-198-91.nycmny.fios.verizon.net] has joined #theoretical
[01:19] <gatti_> what are your thoughts on MACD vs RSI divergence
[01:20] <thebroseph> Theo I see that the lines crossed with the dump
[01:20] <@theoretical> http://awesomescreenshot.com/05d38w5b3b
[01:20] <thebroseph> But the 21 50 100 200 didn't cross
[01:21] <@theoretical> lets not bring EMA into this to much atm broseph as some missed out on that.
[01:21] <thebroseph> K
[01:21] <@theoretical> Gatti_ lets get through both indicators then we can talk about the vs of divergences
[01:21] <@theoretical> Ok so i have just shown 2 things that you look for in momentum
[01:22] <@theoretical> Even though the price was still increasing the MACD 4 hour, started to show a roll over.  This would have been a Huge indicator to sell at that point
[01:22] <@theoretical> A roll is when it goes from green clear to solid
[01:22] <Danoded> so whenever there is a lot of momentum there will always be a drop afterwards
[01:22] <@theoretical> Or red Solid to clear
[01:23] <Danoded> when you see it drying up?
[01:23] <@theoretical> There has to be ^^
[01:23] <Danoded> ok
[01:23] <@theoretical> Its a natural reaction imagine a slingshot is shot.  The further back you pull it the more it flings back towards you after
[01:23] <gatti_> ok :) ping me when you get to the advanced section
[01:23] <@theoretical> Same as a market.  Though in a bullish scenario the dump that happens should never go lower then where the pump started.
[01:23] <@theoretical> will do gatti)
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[01:24] <Danoded> ok I see
[01:24] <Cryptolover> (hey guys, new to this, really cool that you’re explaining all this, thanks)
[01:24] <NSA360> ^
[01:24] <@theoretical> Yw :)
[01:24] <YesYes> now i am understandin the charts better
[01:25] <@theoretical> Now lets look at multiple time frames on say dark coin
[01:25] <@theoretical> https://bitcoinwisdom.com/markets/mintpal/drkbtc
[01:25] <@theoretical> I will show you divergence now across multiple flows which is where this tool really become's powerful
[01:25] <@theoretical> Lets go to a 4 hour time frame
[01:27] <@theoretical> http://awesomescreenshot.com/09938w6kbe
[01:27] <@theoretical> Divergence is when its going down convergence is used when its going up
[01:27] <thebroseph> Awesome
[01:27] <@theoretical> So on drk at 4 hour we see mostly divergence because the momentum is constantly getting weaker and weaker upwards
[01:27] <@theoretical> and stronger downwards
[01:28] <thebroseph> So there should be an increase in trolls because dark is going down again
[01:28] <welovetomine> lol
[01:28] <Danoded> haha
[01:29] <alty> hehe
[01:29] <@theoretical> hehe
[01:29] <@theoretical> Sorry to jump around i want to show you some convergence http://awesomescreenshot.com/08538w6x6d
[01:29] <@theoretical> Thats the cloak chart just before we went up to 300k
[01:29] <@theoretical> As you can see the green was getting larger or at least equal where as red was getting smaller
[01:29] <@theoretical> So that means a bullish time is about to happen
[01:30] <@theoretical> Now in terms of trading
[01:30] <@theoretical> You want to be Buying when its red
[01:30] <@theoretical> Selling when its green
[01:30] <thebroseph> Damn the info was there all along
[01:30] <@theoretical> As this will cause the least amount of damage to the market
[01:30] <@theoretical> By damage i mean manipulation
[01:30] <Danoded> bro yeah
[01:31] <@theoretical> Now MACD is not useful on small time frames unless your trading really short term
[01:31] <@theoretical> I only use MACD on 1 HR +
[01:31] <@theoretical> And normaly only on 4 hour +
[01:31] <ChrisPR> fuck if you take cloak the last 30 hours you are so right with this technical analysis
[01:31] <@theoretical> 1 hour I use it to see convergence and divergence mostly
[01:32] <@theoretical> hehe chris you missed the FIB and EMA which also showed exactly where the dump was going to end ;)
[01:32] <@theoretical> I will paste bin the earlier things for all who missed it
[01:32] <Valexus> what about the parameters for MACD?
[01:32] <Cryptolover> yes please
[01:32] <Danoded> so theoretically (lol) we can predict that cloak could do another run before falling again?
[01:32] <YesYes> lucky i was around to see this
[01:32] <@theoretical> Ummmm please dont change these paramters lol
[01:32] <@theoretical> Unless your a pro!
[01:32] <Valexus> lol ok then
[01:33] <@theoretical> Even i don't change the paramters of MacD much ;-) just a tad
[01:33] <thebroseph> Woh
[01:33] <@theoretical> Now we will move on to in my opinion the most powerful indicator
[01:33] <Danoded> ready
[01:33] <@theoretical> Gatti_ swears by this indicator
[01:33] <@theoretical> It is called the RSI
[01:33] <@theoretical> Relative strength index or as i call it Hype and fear meter
[01:34] <@theoretical> so go settings and change to RSI
[01:34] <thebroseph> K
[01:34] <@theoretical> the RSI is bounded within a range from 100 - 0
[01:34] <@theoretical> 0 is when FEAR is off the charts
[01:34] <@theoretical> 100 is when HYPE is off the charts
[01:34] <@theoretical> normally this should not range outside of 30-70
[01:34] <@theoretical> if its at any point above 70 This is a great indicator to SELL
[01:34] <Danoded> but did lol
[01:35] <@theoretical> and if we look at where the pump was it hit a high of https://bitcoinwisdom.com/markets/mintpal/cloakbtc
[01:35] <@theoretical> 87.36 on 4 hour chart
[01:36] <@theoretical> http://awesomescreenshot.com/0f138w8wd9
[01:36] <thebroseph> Theo why is it called hype and fear meter?
[01:36] <@theoretical> Because when its above 70 its OVER HYPED
[01:36] <@theoretical> And when things are over hyped either a) SELL
[01:36] <@theoretical> or b) DO NOT BUY
[01:37] <thebroseph> K
[01:37] <@theoretical> Fear meter because when there is some serious FUD going on and people start dumping, if it gets around 30 either a) BUY or b) DO NOT SELL
[01:37] <thebroseph> Oh ok because it is undervalued
[01:37] <@theoretical> Yup :-)
[01:37] <ChrisPR> ... ok can u exolain the mechanism behind it?
[01:37] <@theoretical> The RSI
[01:37] <ChrisPR> how does the 0 to 100 is coming?
[01:37] <@theoretical> Yes
[01:38] <@theoretical> this is a long winded explanation but il do my best
[01:39] <alty> Interestingly looking at DRK RSI it's been under 70 since end of May
[01:39] <Danoded> it's seen over 70
[01:39] <@theoretical> it runs through a algorithm that tells it its range bounded between there.  Then it takes in bitcoin wisdoms case 14 price candles.  It then runs there last Closing price of the 14 candles through the algorithm
[01:39] <Danoded> just by a bit
[01:39] <welovetomine> if going by RSI, you have to react fast right?
[01:40] <Danoded> not when buying
[01:40] <@theoretical> No welovetomine change the time frame to say 1 day and the RSI changes as well
[01:40] <@theoretical> It depends on the time frame.  If you are using RSI on say 1 hour then yes you have to react fast.
[01:40] <@theoretical> If using RSI on 4 hr - 1 day React in your own time
[01:40] <welovetomine> ok, gotcha
[01:40] <alty> ^^ yep
[01:40] <@theoretical> I am a long term trader as in I don't day trade much.  Id rather take a position in something then sell next week.  Rather then worrying every hour for 48 hours lol.
[01:40] <Danoded> ok
[01:41] <ChrisPR> So understanding right..  If the Cloakpay news is out by alty today :D :P ,  and the chart hits over 70 .. maybe 80.. its a good time to sell?
[01:41] <@theoretical> Yes
[01:41] <Danoded> cool
[01:41] <alty> should I drop 200K? :p
[01:41] <alty> jk
[01:41] <welovetomine> lol
[01:41] <Pico_de_amaya> hahaha
[01:41] <@theoretical> When it runs it through the algorithm it takes into account the difference in price in a % and this helps to center the RSI on a point between the 30-70
[01:41] <Danoded> O.O
[01:41] <alty> btw theo, do you trade RSI on 4 hours?
[01:41] <ChrisPR> lol or you all fool us by giving a second amazing news today and everyone here sold :D
[01:42] <@theoretical> I trade RSI on 4 HR and 1 Hour especially.  Both equal to see patterns il show you why in a second
[01:42] <alty> ok
[01:42] <alty> used to trade litcoin and bitcoin like this
[01:43] <@theoretical> Now why RSI is such a powerful tool is you can litteraly see and draw patterns in the RSI, same as you would price and it normally stays to this exactly (even more then price i find :O) il show you what i mean
[01:43] <@theoretical> http://www.investopedia.com/university/charts/ here are the patterns for anyone
[01:43] <Danoded> the second I look at btc's chart it starts pumping lool
[01:43] <Danoded> to check the rsi
[01:43] <Danoded> wtf?
[01:44] <@theoretical> Check the RSI on multiple time levels always before you make a decision
[01:44] <Danoded> ok thanks
[01:44] <@theoretical> So if you see it over bought (Hyped) on 1 hour check the 4 hour to see if it says so as well
[01:44] <@theoretical> https://cryptrader.com/charts/bittrex/cloak/btc
[01:44] <@theoretical> this is the graph il be using this is a much more advanced setup
[01:44] <@theoretical> But feel free to use this one as well.
[01:44] <@theoretical> Indicators are hidden away in the top left corner the picture of a arrow climbing up
[01:45] <@theoretical> (there are lots of indicators here so don't say i didnt warn you)
[01:46] <thebroseph> Oh shit. Focus broseph...
[01:46] <@theoretical> Also you should be looking at your graphs In LOG SCALE
[01:46] <@theoretical> never linear!
[01:46] <Danoded> ok, but why is linear bad?
[01:47] <Danoded> does it not follow the price?
[01:47] <@theoretical> http://www.tradingview.com/x/haBjfGwi
[01:47] <@theoretical> Go look at bitcoin on a 1 week graph on bitcoinwisdom using linear and then log scale
[01:48] <@theoretical> That should answer your question :-)
[01:48] <@theoretical> Log scale does the price changes as a %
[01:48] <@theoretical> where as linear keeps the changes spaced apart evenly not on a log scale
[01:48] <@theoretical> Looking at the RSI on that latest graph
[01:48] <Danoded> I thought so
[01:48] <Danoded> thanks
[01:48] <@theoretical> http://www.investopedia.com/terms/h/head-shoulders.asp
[01:49] <@theoretical> Had a typical head and shoulders pattern that says its going down big time
[01:49] <@theoretical> and it went from over 80 down to 30!
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[01:49] <YesYes_> damn my browser crashed
[01:49] <Danoded> can't find the indicators on cryptrader though
[01:49] <thebroseph> And 30 meant buy!
[01:50] <@theoretical> ok danoded
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[01:50] <ChrisPR> I mean for beginners when I start with these two indicators using them right to buy and also sell then it is a good step in the technical trading i am right? Just for the first week e.g.
[01:50] <@theoretical> go to the symbol in top left corner (the furtherst on the right symbol of a arrow climbing up a price)
[01:51] <@theoretical> Yes chris
[01:51] <p4n> hi!
[01:51] <@theoretical> Hey p4n
[01:51] <@theoretical> And it will open up a giant list of names
[01:51] <@theoretical> Look for the Relative strength index
[01:51] <Danoded> ok
[01:51] <@theoretical> it will be 5th from the top on far right
[01:52] <Danoded> Oh I'm such an idiot
[01:52] <Danoded> thanks
[01:52] <@theoretical> The other major reason i use the RSI and this here graph is it lets me draw lines down on the actual indicator
[01:52] <@theoretical> http://www.tradingview.com/x/n8lQFrMW
[01:52] <@theoretical> So i could see where the next uptrend was going to start
[01:52] <@theoretical> When the RSI managed to cross that line i drew
[01:52] <@theoretical> I will do the same now for the 4 hr and show you guys :-)
[01:54] <@theoretical> http://www.tradingview.com/x/YASSRr7q
[01:54] <@theoretical> Now see my 4 hr RSI didn't predict this latest rise that we are seeing
[01:54] <@theoretical> But my 1 Hr RSI DID
[01:55] <@theoretical> this is why i use multiple time frames on the RSI to see what will happen
[01:55] <@theoretical> in answer to alty question
[01:56] <@theoretical> and once again we had a nice little chart pattern in there to tell us as well a double bottom
[01:56] <@theoretical> So the RSI can be your most powerful indicator because you can draw these lines all over it and play with them to see the next breakout.  and also even just as a Check before you enter the market
[01:56] <@theoretical> so lets look at a new coin on rex thats doing well
[01:57] <@theoretical> https://cryptrader.com/charts/bittrex/sdc/btc
[01:57] <@theoretical> Shadow coin
[01:58] <YesYes_> dont look like its a buy right now
[01:59] <@theoretical> http://www.tradingview.com/x/eDm3GUK5
[02:00] <@theoretical> http://www.tradingview.com/x/Ia8S4TVW
[02:00] <@theoretical> agreed
[02:00] <@theoretical> As most likely it will bounce off the RSI now and go down from here ^^
[02:00] <Danoded> Ilike btc right now
[02:00] <@theoretical> (newest chart)
[02:00] <Danoded> *like
[02:01] <@theoretical> Bitcoin is in a odd spot as it broke its Mid term trend line.  and needs to get above that to go much higher
[02:01] <@theoretical> But i think it will just be a weird time.
[02:01] <Danoded> alright
[02:01] <@theoretical> So i hope that shows you guys the power of the RSI
[02:01] <thebroseph> My eyes have been opened
[02:01] <Danoded> I feel like a god now with it
[02:01] <@theoretical> now il teach you my Favorite indicator for spotting Resistance and also for support
[02:01] <YesYes_> that was some excellent explanation
[02:02] <thebroseph> I feel like a gambler
[02:02] <Danoded> lool
[02:02] <ChrisPR> If I see that chart Theo i would not have invested in Shadow Coin till now because not one time under 30 .
[02:02] <thebroseph> Cause I bought and sell without these tools
[02:02] <@theoretical> exactly ^^
[02:02] <@theoretical> to both chris and broseph
[02:02] <Danoded> I would probably be a billionaire now
[02:02] <@theoretical> Well without these tools thats all you are doing gambling...
[02:02] <Danoded> if I used these tools
[02:02] <@theoretical> And the whales sit there and use these tools and laugh at you
[02:03] <thebroseph> Well danoded you are now in phase one of the dunning Krueger effect.
[02:03] <@theoretical> I almost bought shadow earlier today then i check the RSI and went wait hell now
[02:03] <ChrisPR> yeah
[02:03] <ChrisPR> i mean I dont do daytrading with these tools you can check the prices first
[02:03] <@theoretical> Here is the best investment advice ever.  Don't rush into a trade.  There will always be another one that is better later!
[02:03] <thebroseph> So all whales use these things right
[02:03] <YesYes_> yep thas true
[02:03] <@theoretical> Yup and see which way it should be going ^^ even for long term investing this is the smart thing to do
[02:04] <@theoretical> As long term investing you want to buy in at a bottom and sell much later.
[02:04] <@theoretical> But the lower the bottom the more % gain
[02:04] <thebroseph> So they use twitter and such  and have an effect on rsi
[02:04] <alty> good advice theo, the best trades always come after careful analysis and planning
[02:04] <ChrisPR> yes
[02:04] <@theoretical> Well most whales brosepth and worth there weight
[02:04] <@theoretical> thanks alt :$
[02:04] <@theoretical> I will now show you the easiest indicator to use
[02:05] <@theoretical> Its called the ichimoku cloud
[02:05] <@theoretical> You just have to set it up and it does everything for you!
[02:05] <@theoretical> https://cryptrader.com/charts/bittrex/cloak/btc
[02:05] <@theoretical> only on cryptrader hence why i use it so much

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[02:07] <theoretical_> hey
[02:07] <theoretical_> Haha
[02:07] <theoretical_> The cloud
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[02:07] <theoretical_> its in the middle around 7 down from the top
[02:07] <Xuthus> uh, is this a fan channel ?
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[02:08] <theoretical_> no
[02:08] <ChrisPR> everyone just listen theo :) now we at the ichimoku cloud indicator!
[02:08] <theoretical_> My Techincal analysis channel
[02:08] <theoretical_> So once you choose the Cloud it will Look UGLY
[02:08] <theoretical_> http://www.tradingview.com/x/cVPwivbp
[02:08] <theoretical_> here is a unset up cloud
[02:08] <thebroseph> She's taking us to school
[02:09] <Valexus> I'm always a fan of lady theo
[02:09] <theoretical_> You can't read any information off of this!
[02:09] <theoretical_> so now il teach you how to set it up
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[02:09] <thebroseph> Ah shit
[02:10] <Xuthus> darkcoin assassins got her
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[02:10] <Danoded> damn
[02:11] <Danoded> I want to eat
[02:11] <thebroseph> "They know too much! Stop them!"
[02:11] <Danoded> but I don't want to stop listening
[02:11] <theoretical_> http://awesomescreenshot.com/09338wgfbd
[02:11] <theoretical_> haha
[02:11] <ChrisPR> Theo can you set this cloud up at bitcoinwisdom ? possible?
[02:12] <theoretical_> http://awesomescreenshot.com/09038wgt3e
[02:12] <theoretical_> Not possible
[02:12] <theoretical_> Hence why i use cryptrader
[02:12] <theoretical_> http://awesomescreenshot.com/09038wgt3e this is first screen shot
[02:12] <theoretical_> Go to settings
[02:12] <theoretical_> the little gear next to the cloud words
[02:12] <theoretical_> then change all of these http://awesomescreenshot.com/09338wgfbd
[02:12] <theoretical_> and it should look like this http://awesomescreenshot.com/02e38wgq88
[02:13] <theoretical_> now we have one bad ass looking cloud http://www.tradingview.com/x/zv4gQYHc
[02:13] <theoretical_> If the price is below the cloud then it acts as Resistance and needs to be broken through
[02:13] <theoretical_> If its below the price it acts as support for the price
[02:14] <theoretical_> Obviously you need to look at the cloud in multiple time frames
[02:14] <theoretical_> The longer the time frame
[02:14] <theoretical_> The stronger that Resitance or Support
[02:14] <theoretical_> Il show you a 4 hour cloud
[02:15] <Danoded> didn't realise you were back
[02:15] <Danoded> need to catch up
[02:15] <theoretical_> http://www.tradingview.com/x/IpAJpuTT
[02:15] <theoretical_> hehe take your time
[02:15] <theoretical_> So its a different story for where that cloud support is dependant on the time frame you choose to use
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[02:15] <Danoded> thanks
[02:16] <theoretical_> Hence why once again i like to jump around in my time frames from 1 hour to - 4 hour.  Sometimes checking the daily (not often in alt coin market as they move to fast)  I never look at a chart below 30 min honestly.  As it won't tell you anything more
[02:16] <theoretical_> Then a 1 hour chart can tell you with correct Fib lines and EMA and indicators in place
[02:16] <theoretical_> And 1 hour you get a bigger picture.
[02:17] <thebroseph> So one should take a look at all these tools to form a properly informed decision
[02:17] <thebroseph> Otherwise is guessing/gambling
[02:17] <theoretical_> Yes
[02:18] <theoretical_> And the more you practice
[02:18] <theoretical_> The more you will know which indicator is relavent to look at
[02:18] <theoretical_> Now as you are all learning
[02:18] <theoretical_> I would check every indicator before you make a decision
[02:18] <theoretical_> and see what could happen
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[02:19] <theoretical_> Wow this has gone way over time been teaching for 90 minutes.  I will also show you guys 1 other thing which is called the trend lines.
[02:19] <theoretical_> And then its question time
[02:19] <thebroseph> Damn yesterday I sold and bought and managed to accumulate more cloak now I realize I was absurdly lucky
[02:19] <theoretical_> Trend lines are lines that you draw that touch the price at a minimum of 3 times.  Weather its a Support line or a resistance line
[02:20] <theoretical_> You can not say its a trend line if it touches twice.  At most you can say its a UnConfirmed Trend LINE
[02:20] <theoretical_> the more times it touches that trend line The more true it is!
[02:21] <theoretical_> http://www.tradingview.com/x/jBfXv90v
[02:21] <theoretical_> Those are the 100% true trend lines for Cloak right now
[02:21] <ChrisPR> haha
[02:22] <theoretical_> And sure enough at this last pump it went over that trend line and concequently had to drop below
[02:22] <ChrisPR> everyone buy now!!!
[02:22] <theoretical_> Make sure your graph is in log form if you draw lines
[02:22] <theoretical_> This is especially important for Trend lines
[02:22] <theoretical_> To change your graph to log on crypt trader
[02:23] <theoretical_> the button to the left of where the indicators are
[02:23] <theoretical_> the gear
[02:23] <theoretical_> then click scales
[02:23] <theoretical_> then click Log
[02:23] <theoretical_> Now i will draw a full on graph with all indicators and trend lines and fib's so you can see what a full graph my look like
[02:26] <theoretical_> http://www.tradingview.com/x/C68i93xu
[02:26] <theoretical_> So thats what i normally sit there with my graph looking like
[02:26] <theoretical_> and just change the time intervals but i have all 3 of my indicators ready
[02:26] <theoretical_> I have my fib retacment with extension ready
[02:26] <theoretical_> And my trend lines showing
[02:26] <theoretical_> The only thing missing from that graph is my 4 EMA
[02:27] <theoretical_> if you want to add EMA to Cryptrader
[02:27] <thebroseph> I'm gonna practice with tiny btc amounts on other coins
[02:27] <theoretical_> Its called your double exponential moving average
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[02:27] <theoretical_> And to edit the Paramaters
[02:27] <theoretical_> you change the length of it in settings
[02:27] <theoretical_> good idea broseph
[02:28] <theoretical_> Now heres the fun part
[02:28] <theoretical_> Questions
[02:28] <theoretical_> Questions
[02:28] <theoretical_> Questions
[02:28] <thebroseph> Theo could you pastebin this so I can reference it during practice ??
[02:28] <ChrisPR> Honestly I made all 3 indicators now for cloak and I am happy to try them tomorrow
[02:29] <thebroseph> I'm gonna trade plankton food
[02:29] <Danoded> Yeah broseph
[02:29] <theoretical_> I am going to be doing that in a twitter with all of this lesson
[02:29] <thebroseph> The cheapest coin of all
[02:29] <p4n> wow, all this info is amazing
[02:29] <theoretical_> if you guys want any advice then please feel free to PM me at any time
[02:29] <theoretical_> when im online
[02:30] <theoretical_> weather it be to check your graph.  Do some TA on a coin or anything
[02:30] <YesYes_> whats your twitter?
[02:30] <theoretical_> Always happy to help
[02:30] <p4n> i lost the fibo part of the lesson :(
[02:30] <thebroseph> Thanks theoretical. What's your twitter ? Would like to add you to notify alerts
[02:30] <theoretical_> 1 sec p4n i am pastebin it
[02:30] <p4n> :D:D:D:D:D yay! thx!
[02:30] <Danoded> I know thank you so much for this tutorial, your time and effort
[02:31] <ChrisPR> Really Amazing! looking forward to the next one