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  1. [00:16] == theoretical [65a24d0b@gateway/web/freenode/ip.101.162.77.11] has joined #theoretical
  2. [00:16] == mode/#theoretical [+ns] by herbert.freenode.net
  3. [00:17] == tcherkin [4dbba404@gateway/web/cgi-irc/kiwiirc.com/ip.77.187.164.4] has joined #theoretical
  4. [00:17] == YesYes [5ac3ad52@gateway/web/freenode/ip.90.195.173.82] has joined #theoretical
  5. [00:17] == wheatclove [~wheatclov@50-77-133-244-static.hfc.comcastbusiness.net] has joined #theoretical
  6. [00:17] == thebroseph [~AndChat69@186.188.236.42] has joined #theoretical
  7. [00:17] <thebroseph> Sup
  8. [00:18] <@theoretical> Hey there :-) how is everyone today
  9. [00:18] <@theoretical> I thought we would just have me and you broseph but some lurkers love to join yay!
  10. [00:19] <thebroseph> Awesome
  11. [00:19] <YesYes> very good
  12. [00:19] <YesYes> i dont mind some few tips
  13. [00:19] <wheatclove> Yeah im at work but i wanna read this later
  14. [00:20] == Danoded [520dcc51@gateway/web/freenode/ip.82.13.204.81] has joined #theoretical
  15. [00:20] <tcherkin> just curious to see what is TA :)
  16. [00:20] <@theoretical> Ok
  17. [00:20] <@theoretical> TA is technical analysis
  18. [00:21] <@theoretical> What coin would people like me to look at first so we can start by learning MA and EMA
  19. [00:21] <thebroseph> How about a slow moving currency ?
  20. [00:21] <@theoretical> perfect
  21. [00:22] == Valexus [~Valexus@gateway/tor-sasl/valexus] has joined #theoretical
  22. [00:22] <thebroseph> Then we can move to more volatile ones
  23. [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
  24. [00:23] <thebroseph> How bout the rise and death of dogecoin ?
  25. [00:23] <YesYes> lol
  26. [00:23] <thebroseph> A case study by theoretical
  27. [00:23] <@theoretical> Ooooooh I like i like
  28. [00:23] <@theoretical> Doge it is
  29. [00:24] <@theoretical> what markets trade doge
  30. [00:25] <@theoretical> https://bitcoinwisdom.com/markets/bter/dogebtc
  31. [00:25] <YesYes> mintpal
  32. [00:25] <@theoretical> This is the oldest history on wisdom
  33. [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
  34. [00:26] <@theoretical> MA is called a moving average
  35. [00:26] <@theoretical> EMA is called a exponential moving average
  36. [00:26] <@theoretical> The difference is that the EMA weighs the newest history heavier then the previous and is more up to date
  37. [00:26] <@theoretical> In Crypto i never use MA as Crypto moves to fast
  38. [00:26] <@theoretical> So i always stick with EMA
  39. [00:27] <@theoretical> Now going into bitcoin wisdom pull down the settings and hit indicator parramters
  40. [00:27] <@theoretical> There are a lot of magical numbers you can use for EMA / MA
  41. [00:27] <@theoretical> But the ones i find to be the best for trading on most time frames are
  42. [00:27] <@theoretical> 21 50 100 200
  43. [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
  44. [00:28] <@theoretical> 50 is the last 50 candles and so on so forth.
  45. [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
  46. [00:29] <@theoretical> So go on and plug those numbers into the graph
  47. [00:29] <@theoretical> then change your time frame to 1D candles
  48. [00:31] <YesYes> do i put the 21 50 100 or just one of those numbers?
  49. [00:31] <@theoretical> all of them
  50. [00:31] <@theoretical> as there are 4 spaces in indicator paramters
  51. [00:31] <@theoretical> next to MA/EMA
  52. [00:31] <YesYes> ok
  53. [00:31] <@theoretical> And imo keep them as the ones you use now will help whenever you look at wisdom :-)
  54. [00:31] <thebroseph> Awesome. All 4 show doge falling!
  55. [00:32] <@theoretical> yes they do indeed
  56. [00:32] <thebroseph> Much sadness
  57. [00:32] <@theoretical> much resistance
  58. [00:32] <Danoded> theo your amazing
  59. [00:32] <@theoretical> <3
  60. [00:32] <Danoded> I don't know many other people who would devote there time to teaching people about charts
  61. [00:32] <Danoded> You sir are amazing
  62. [00:32] <thebroseph> Indeed he is !
  63. [00:32] <@theoretical> So as we can see where we are now
  64. [00:33] <@theoretical> dodge is following that first line closely and constantly try's to push above it
  65. [00:33] <thebroseph> And each time it's being hammered down
  66. [00:34] <thebroseph> Like lol no you shall not pass
  67. [00:34] <Valexus> how do we know if a reversal is going to happen?
  68. [00:34] <@theoretical> http://awesomescreenshot.com/08f38vu273
  69. [00:35] <@theoretical> Just drew 2 things that drew my eyes and you can look at closely on your screens
  70. [00:35] <@theoretical> Now to know a reversal is going to happen
  71. [00:35] <@theoretical> This is possible using just EMA and MA/s
  72. [00:35] <@theoretical> Though hard
  73. [00:37] <@theoretical> http://awesomescreenshot.com/0bc38vuz96
  74. [00:38] <@theoretical> There is 2 ways you can see reversal ^^
  75. [00:38] <@theoretical> Looking for those magic Crosses or Death Crosses
  76. [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
  77. [00:39] <@theoretical> So perspective is everything!
  78. [00:39] <Danoded> so basically when the 21 line passes the 50,100 and 200 lines that's the end?
  79. [00:39] <Danoded> under
  80. [00:39] <@theoretical> Yup :-)
  81. [00:39] <@theoretical> Well at least the end of the uptrend!
  82. [00:39] <@theoretical> Doge may have another day
  83. [00:40] <Danoded> That's brilliant thanks so much!
  84. [00:40] <@theoretical> Now how else to tell reversal
  85. [00:40] <@theoretical> Using only EMA / MA
  86. [00:40] <Valexus> awesome!
  87. [00:40] <thebroseph> I feel like neo being explained what the matrix is
  88. [00:40] <Danoded> loool
  89. [00:41] <Danoded> So from the cloak chart it looks like it "should" be ready for an uptrend?
  90. [00:41] == Pico_de_amaya [~Pico_de_a@ip68-106-224-213.ph.ph.cox.net] has joined #theoretical
  91. [00:41] <Danoded> looking at the 30 min chart
  92. [00:41] <@theoretical> http://awesomescreenshot.com/02f38vvw12
  93. [00:41] <@theoretical> 30 minutes aren't great for EMA unless looking for short term trends.
  94. [00:42] <@theoretical> 1hr + are best
  95. [00:42] <Danoded> thanks
  96. [00:42] <@theoretical> now i will pull up drk chart to show you some awesome things with EMA
  97. [00:43] <@theoretical> https://bitcoinwisdom.com/markets/mintpal/drkbtc
  98. [00:43] <@theoretical> using the same paramters change it to 6 hour time frame
  99. [00:44] <Danoded> ok
  100. [00:44] == Cryptolover [~Cryptolov@207.Red-83-44-18.dynamicIP.rima-tde.net] has joined #theoretical
  101. [00:45] <thebroseph> Seems like one of the lines tried to cross while the others stayed put and so it bounce back down
  102. [00:45] <@theoretical> http://awesomescreenshot.com/0f538vwf1a
  103. [00:45] <@theoretical> Yes ^^ exactly
  104. [00:45] <@theoretical> I didn't see that till just then!
  105. [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
  106. [00:46] <thebroseph> Awesome !
  107. [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!
  108. [00:47] <@theoretical> https://bitcoinwisdom.com/markets/mintpal/cloakbtc look at cloak on 6hr time frame with those EMA
  109. [00:47] <@theoretical> You now just with this one tool have a brand new pair of eyes :-)
  110. [00:48] <thebroseph> Oh shit it's going up
  111. [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
  112. [00:48] <YesYes> man thats something new for me you sir are amazing
  113. [00:49] <Danoded> +∞
  114. [00:49] <YesYes> im gonna have to try this out alot
  115. [00:49] <Valexus> how do we predict what the 200 EMA will be as it is going up?
  116. [00:49] <thebroseph> Theo let's say the trend says one thing
  117. [00:49] <thebroseph> And then huge news drop
  118. [00:49] <Pico_de_amaya> ma'am
  119. [00:49] <thebroseph> What do
  120. [00:49] <Valexus> 200 EMA for support i mean
  121. [00:50] <Danoded> So it's mainly dependent on the 21 line staying above the rest of the lines?
  122. [00:51] <@theoretical> We watch the 200 EMA and change our orders when it changes every new candle
  123. [00:51] <@theoretical> Yes danoded and bounces are also very important
  124. [00:51] <@theoretical> As thebroseph saw in drk's 21 bounce off 50
  125. [00:51] <@theoretical> Well broseph it depends on the news
  126. [00:51] <@theoretical> If there was hype around the news already
  127. [00:51] <Danoded> Alright thanks
  128. [00:51] <@theoretical> I.E POSA open beta
  129. [00:52] <@theoretical> Then i would say its already priced into the graph to some degree
  130. [00:52] <@theoretical> Because it was already known about to the investors
  131. [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
  132. [00:52] <@theoretical> Where as hyped news / rumors is usually priced in, to some degree
  133. [00:53] <@theoretical> Does that explain thebroseph
  134. [00:53] <thebroseph> Yeah basically the graph can only work with the information already out there
  135. [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
  136. [00:53] <thebroseph> If new information exists that couldn't be known by most traders then we must read just
  137. [00:53] <thebroseph> Readjust
  138. [00:53] <@theoretical> Yup!
  139. [00:53] <@theoretical> Readjust
  140. [00:53] <@theoretical> http://awesomescreenshot.com/0dd38vxkd5
  141. [00:54] <@theoretical> Graphs move in patterns always
  142. [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
  143. [00:54] <Valexus> this is great theo..
  144. [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
  145. [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
  146. [00:55] <Danoded> this is truly amazing
  147. [00:55] <@theoretical> The best place to get a lot of information about this is investopedia.com i believe its called
  148. [00:55] <Valexus> i saw the 200 EMA on cloak hourly corelates well with the fib you mention earlier
  149. [00:55] <@theoretical> 1 sec il get the link
  150. [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
  151. [00:56] <Danoded> So you should never try and maximise
  152. [00:56] <Danoded> always be in the upper middle
  153. [00:56] <Danoded> or lower middle
  154. [00:56] <@theoretical> http://www.investopedia.com/university/charts/
  155. [00:56] <thebroseph> Awesome
  156. [00:56] <Danoded> to have guaranteed profits
  157. [00:56] <@theoretical> You should try to maximise but only when your sure!
  158. [00:56] <@theoretical> But yes thats the idea and the better you are at trading the earlier on you can be sure
  159. [00:56] <thebroseph> Oh danoded yeah because that would mean you are not operating on fringe possibilities
  160. [00:57] <Danoded> Thank you both :)
  161. [00:58] <thebroseph> Theo for press
  162. [00:58] <@theoretical> We ready to move on to Fib lines?
  163. [00:58] <thebroseph> Yes
  164. [00:58] <@theoretical> Fib lines are the best tool for swing trading (trading the movements) and also for calculating the next high
  165. [00:59] <@theoretical> https://bitcoinwisdom.com/markets/mintpal/cloakbtc
  166. [00:59] <@theoretical> 4 hour time frame
  167. [00:59] <Danoded> Yeah really need to know about fibs
  168. [01:00] <@theoretical> Ok il be 1 min need to do a few images to show you how to do this
  169. [01:01] <@theoretical> http://awesomescreenshot.com/0e438w0w62
  170. [01:03] <@theoretical> http://awesomescreenshot.com/03138w169c
  171. [01:03] <@theoretical> Draw fib lines starting from the top of the last move to the bottom of the last move
  172. [01:03] <@theoretical> And with that We could have calculated the Top of this bubble to within 3-5%
  173. [01:04] <thebroseph> Aw man can't do this cause I'm on my phone :(
  174. [01:04] <@theoretical> and also the true bottom!
  175. [01:04] <@theoretical> you can broseph but you just have to get it very right :-) i do it on my iphone sometimes lol
  176. [01:04] <@theoretical> Otherwise just watch my screenshots and learn for later :-)
  177. [01:05] <Danoded> can't zoom out on my laptop
  178. [01:05] <Danoded> is there a trick to doing it
  179. [01:05] <Danoded> ?
  180. [01:05] <@theoretical> mouse wheel
  181. [01:05] <@theoretical> or two fingers on mouse and push up / back
  182. [01:06] <@theoretical> mouse area thing lol
  183. [01:06] <Danoded> not doing anything:(
  184. [01:06] <Danoded> screw it I'll get a mouse
  185. [01:06] <@theoretical> :'(
  186. [01:06] <@theoretical> ok il wait :)
  187. [01:07] <Danoded> ok got it :)
  188. [01:07] <Danoded> just need to do the fib
  189. [01:08] <@theoretical> http://awesomescreenshot.com/01638w2be5
  190. [01:09] == Pysiek [~pysiek@unaffiliated/pysiek] has joined #theoretical
  191. [01:09] == cashmen [cashmen@gateway/shell/bnc4free/x-exqtcndzatygmddl] has joined #theoretical
  192. [01:09] <@theoretical> so those are fib lines. always use them to see where we are in terms of the movement.
  193. [01:10] <Danoded> how do I get the straight fib line before the extensions?
  194. [01:10] <@theoretical> Use it from the top of the move
  195. [01:10] <@theoretical> to the bottom of the move
  196. [01:10] <@theoretical> http://awesomescreenshot.com/03138w169c
  197. [01:10] <Danoded> ok thanks
  198. [01:10] <@theoretical> like that
  199. [01:10] <@theoretical> where the rectangles are the points i used
  200. [01:11] <Valexus> wait, what was the estimate trading used for?
  201. [01:11] == ChrisPR [7c7abc0b@gateway/web/freenode/ip.124.122.188.11] has joined #theoretical
  202. [01:11] <ChrisPR> hi
  203. [01:11] <@theoretical> Hey chris
  204. [01:11] <Danoded> I just can't seem to do it
  205. [01:11] == NSA360 [~NSA360___@93.102.168.82.rev.optimus.pt] has joined #theoretical
  206. [01:11] <ChrisPR> This will be about the right opening?
  207. [01:11] <@theoretical> We are just about to move on from Fib to Indicators so should be perfect
  208. [01:11] <Danoded> do I use the snap freelines?
  209. [01:12] <@theoretical> Are you using fib retracment? or fib extension
  210. [01:12] <@theoretical> Not the fib fan
  211. [01:12] == Mountaineer [~jam@unaffiliated/mountaineer] has joined #theoretical
  212. [01:12] <@theoretical> see here for the latest fib lines
  213. [01:12] <@theoretical> chrome-extension://alelhddbbhepgpmgidjdcjakblofbmce/edit.html
  214. [01:12] <@theoretical> whoops
  215. [01:12] <@theoretical> http://awesomescreenshot.com/01638w2be5
  216. [01:12] <Danoded> fib extensions
  217. [01:12] <@theoretical> I use the 346K top and the 160k bottom
  218. [01:13] <@theoretical> with extensions
  219. [01:13] <Danoded> but I used the snap free line to draw one diagonal line from the start of the pump to 160k
  220. [01:13] <@theoretical> go top first left click then bottom left click
  221. [01:13] == dasource [dasource@unaffiliated/dasource] has joined #theoretical
  222. [01:13] == alty [~alty@unaffiliated/alty] has joined #theoretical
  223. [01:13] <@theoretical> Are you usiing bitcoin wisdom?
  224. [01:13] <dasource> ^
  225. [01:13] <Danoded> yes
  226. [01:13] <@theoretical> Welcome welcome welcome!
  227. [01:13] <alty> hey
  228. [01:14] <thebroseph> Oh shit
  229. [01:14] <alty> always good to pick up some tips and ticks ;)
  230. [01:14] <dasource> im all ears theoretical
  231. [01:14] <@theoretical> Just keep practacing trying to get the tops and bottoms danoded. I think its about time we moved on to Indicators.
  232. [01:14] <thebroseph> Theoretical where in bitcoin wisdom do I click for "alty speaks"
  233. [01:15] <Danoded> yeah just move on to indicators
  234. [01:15] <@theoretical> As i only have 30 minutes left and indicators have a lot to go through
  235. [01:15] <thebroseph> Fibonacci Alty Indicator
  236. [01:15] <Danoded> we can talk about fibs later
  237. [01:15] <@theoretical> PM me your problems and i can help more later :-)
  238. [01:15] <Danoded> yeah
  239. [01:15] <@theoretical> sticking with cloak coin
  240. [01:15] <dasource> how do I make my bitcoinwisdom look like yours theoretical
  241. [01:15] <@theoretical> https://bitcoinwisdom.com/markets/mintpal/cloakbtc
  242. [01:16] <@theoretical> I am starting from a blank slate here :-) so it will other then the programed EMA
  243. [01:16] <@theoretical> go to 4 hour time frame
  244. [01:16] <@theoretical> and in settings click MACD indicator
  245. [01:16] <dasource> yuo
  246. [01:16] <thebroseph> K
  247. [01:17] <@theoretical> This stands for a Moving average Convergence / divergence
  248. [01:17] <Danoded> ok
  249. [01:17] <dasource> okay
  250. [01:17] <ChrisPR> k
  251. [01:17] == gatti_ [~BP@72.29.249.249] has joined #theoretical
  252. [01:17] <@theoretical> This indicator is used to find the momentum of the Security
  253. [01:17] <@theoretical> And it has 2 lines that are drawn on it as well as upwards spike's and downwards spikes
  254. [01:18] == welovetomine [~Worldcoin@unaffiliated/welovetomine] has joined #theoretical
  255. [01:18] <welovetomine> howdy
  256. [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
  257. [01:18] <@theoretical> Howdy!
  258. [01:18] <@theoretical> We are just doing MacD on https://bitcoinwisdom.com/markets/mintpal/cloakbtc
  259. [01:18] <@theoretical> 4 hour
  260. [01:18] <@theoretical> Or of course B) the downwards momentum is drying up and a reversal to the uptrend begins
  261. [01:19] == Googs84 [~Googs84@pool-98-113-198-91.nycmny.fios.verizon.net] has joined #theoretical
  262. [01:19] <gatti_> what are your thoughts on MACD vs RSI divergence
  263. [01:20] <thebroseph> Theo I see that the lines crossed with the dump
  264. [01:20] <@theoretical> http://awesomescreenshot.com/05d38w5b3b
  265. [01:20] <thebroseph> But the 21 50 100 200 didn't cross
  266. [01:21] <@theoretical> lets not bring EMA into this to much atm broseph as some missed out on that.
  267. [01:21] <thebroseph> K
  268. [01:21] <@theoretical> Gatti_ lets get through both indicators then we can talk about the vs of divergences
  269. [01:21] <@theoretical> Ok so i have just shown 2 things that you look for in momentum
  270. [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
  271. [01:22] <@theoretical> A roll is when it goes from green clear to solid
  272. [01:22] <Danoded> so whenever there is a lot of momentum there will always be a drop afterwards
  273. [01:22] <@theoretical> Or red Solid to clear
  274. [01:23] <Danoded> when you see it drying up?
  275. [01:23] <@theoretical> There has to be ^^
  276. [01:23] <Danoded> ok
  277. [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
  278. [01:23] <gatti_> ok :) ping me when you get to the advanced section
  279. [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.
  280. [01:23] <@theoretical> will do gatti)
  281. [01:23] == gatti_ [~BP@72.29.249.249] has left #theoretical []
  282. [01:24] <Danoded> ok I see
  283. [01:24] <Cryptolover> (hey guys, new to this, really cool that you’re explaining all this, thanks)
  284. [01:24] <NSA360> ^
  285. [01:24] <@theoretical> Yw :)
  286. [01:24] <YesYes> now i am understandin the charts better
  287. [01:25] <@theoretical> Now lets look at multiple time frames on say dark coin
  288. [01:25] <@theoretical> https://bitcoinwisdom.com/markets/mintpal/drkbtc
  289. [01:25] <@theoretical> I will show you divergence now across multiple flows which is where this tool really become's powerful
  290. [01:25] <@theoretical> Lets go to a 4 hour time frame
  291. [01:27] <@theoretical> http://awesomescreenshot.com/09938w6kbe
  292. [01:27] <@theoretical> Divergence is when its going down convergence is used when its going up
  293. [01:27] <thebroseph> Awesome
  294. [01:27] <@theoretical> So on drk at 4 hour we see mostly divergence because the momentum is constantly getting weaker and weaker upwards
  295. [01:27] <@theoretical> and stronger downwards
  296. [01:28] <thebroseph> So there should be an increase in trolls because dark is going down again
  297. [01:28] <welovetomine> lol
  298. [01:28] <Danoded> haha
  299. [01:29] <alty> hehe
  300. [01:29] <@theoretical> hehe
  301. [01:29] <@theoretical> Sorry to jump around i want to show you some convergence http://awesomescreenshot.com/08538w6x6d
  302. [01:29] <@theoretical> Thats the cloak chart just before we went up to 300k
  303. [01:29] <@theoretical> As you can see the green was getting larger or at least equal where as red was getting smaller
  304. [01:29] <@theoretical> So that means a bullish time is about to happen
  305. [01:30] <@theoretical> Now in terms of trading
  306. [01:30] <@theoretical> You want to be Buying when its red
  307. [01:30] <@theoretical> Selling when its green
  308. [01:30] <thebroseph> Damn the info was there all along
  309. [01:30] <@theoretical> As this will cause the least amount of damage to the market
  310. [01:30] <@theoretical> By damage i mean manipulation
  311. [01:30] <Danoded> bro yeah
  312. [01:31] <@theoretical> Now MACD is not useful on small time frames unless your trading really short term
  313. [01:31] <@theoretical> I only use MACD on 1 HR +
  314. [01:31] <@theoretical> And normaly only on 4 hour +
  315. [01:31] <ChrisPR> fuck if you take cloak the last 30 hours you are so right with this technical analysis
  316. [01:31] <@theoretical> 1 hour I use it to see convergence and divergence mostly
  317. [01:32] <@theoretical> hehe chris you missed the FIB and EMA which also showed exactly where the dump was going to end ;)
  318. [01:32] <@theoretical> I will paste bin the earlier things for all who missed it
  319. [01:32] <Valexus> what about the parameters for MACD?
  320. [01:32] <Cryptolover> yes please
  321. [01:32] <Danoded> so theoretically (lol) we can predict that cloak could do another run before falling again?
  322. [01:32] <YesYes> lucky i was around to see this
  323. [01:32] <@theoretical> Ummmm please dont change these paramters lol
  324. [01:32] <@theoretical> Unless your a pro!
  325. [01:32] <Valexus> lol ok then
  326. [01:33] <@theoretical> Even i don't change the paramters of MacD much ;-) just a tad
  327. [01:33] <thebroseph> Woh
  328. [01:33] <@theoretical> Now we will move on to in my opinion the most powerful indicator
  329. [01:33] <Danoded> ready
  330. [01:33] <@theoretical> Gatti_ swears by this indicator
  331. [01:33] <@theoretical> It is called the RSI
  332. [01:33] <@theoretical> Relative strength index or as i call it Hype and fear meter
  333. [01:34] <@theoretical> so go settings and change to RSI
  334. [01:34] <thebroseph> K
  335. [01:34] <@theoretical> the RSI is bounded within a range from 100 - 0
  336. [01:34] <@theoretical> 0 is when FEAR is off the charts
  337. [01:34] <@theoretical> 100 is when HYPE is off the charts
  338. [01:34] <@theoretical> normally this should not range outside of 30-70
  339. [01:34] <@theoretical> if its at any point above 70 This is a great indicator to SELL
  340. [01:34] <Danoded> but did lol
  341. [01:35] <@theoretical> and if we look at where the pump was it hit a high of https://bitcoinwisdom.com/markets/mintpal/cloakbtc
  342. [01:35] <@theoretical> 87.36 on 4 hour chart
  343. [01:36] <@theoretical> http://awesomescreenshot.com/0f138w8wd9
  344. [01:36] <thebroseph> Theo why is it called hype and fear meter?
  345. [01:36] <@theoretical> Because when its above 70 its OVER HYPED
  346. [01:36] <@theoretical> And when things are over hyped either a) SELL
  347. [01:36] <@theoretical> or b) DO NOT BUY
  348. [01:37] <thebroseph> K
  349. [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
  350. [01:37] <thebroseph> Oh ok because it is undervalued
  351. [01:37] <@theoretical> Yup :-)
  352. [01:37] <ChrisPR> ... ok can u exolain the mechanism behind it?
  353. [01:37] <@theoretical> The RSI
  354. [01:37] <ChrisPR> how does the 0 to 100 is coming?
  355. [01:37] <@theoretical> Yes
  356. [01:38] <@theoretical> this is a long winded explanation but il do my best
  357. [01:39] <alty> Interestingly looking at DRK RSI it's been under 70 since end of May
  358. [01:39] <Danoded> it's seen over 70
  359. [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
  360. [01:39] <Danoded> just by a bit
  361. [01:39] <welovetomine> if going by RSI, you have to react fast right?
  362. [01:40] <Danoded> not when buying
  363. [01:40] <@theoretical> No welovetomine change the time frame to say 1 day and the RSI changes as well
  364. [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.
  365. [01:40] <@theoretical> If using RSI on 4 hr - 1 day React in your own time
  366. [01:40] <welovetomine> ok, gotcha
  367. [01:40] <alty> ^^ yep
  368. [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.
  369. [01:40] <Danoded> ok
  370. [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?
  371. [01:41] <@theoretical> Yes
  372. [01:41] <Danoded> cool
  373. [01:41] <alty> should I drop 200K? :p
  374. [01:41] <alty> jk
  375. [01:41] <welovetomine> lol
  376. [01:41] <Pico_de_amaya> hahaha
  377. [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
  378. [01:41] <Danoded> O.O
  379. [01:41] <alty> btw theo, do you trade RSI on 4 hours?
  380. [01:41] <ChrisPR> lol or you all fool us by giving a second amazing news today and everyone here sold :D
  381. [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
  382. [01:42] <alty> ok
  383. [01:42] <alty> used to trade litcoin and bitcoin like this
  384. [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
  385. [01:43] <@theoretical> http://www.investopedia.com/university/charts/ here are the patterns for anyone
  386. [01:43] <Danoded> the second I look at btc's chart it starts pumping lool
  387. [01:43] <Danoded> to check the rsi
  388. [01:43] <Danoded> wtf?
  389. [01:44] <@theoretical> Check the RSI on multiple time levels always before you make a decision
  390. [01:44] <Danoded> ok thanks
  391. [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
  392. [01:44] <@theoretical> https://cryptrader.com/charts/bittrex/cloak/btc
  393. [01:44] <@theoretical> this is the graph il be using this is a much more advanced setup
  394. [01:44] <@theoretical> But feel free to use this one as well.
  395. [01:44] <@theoretical> Indicators are hidden away in the top left corner the picture of a arrow climbing up
  396. [01:45] <@theoretical> (there are lots of indicators here so don't say i didnt warn you)
  397. [01:46] <thebroseph> Oh shit. Focus broseph...
  398. [01:46] <@theoretical> Also you should be looking at your graphs In LOG SCALE
  399. [01:46] <@theoretical> never linear!
  400. [01:46] <Danoded> ok, but why is linear bad?
  401. [01:47] <Danoded> does it not follow the price?
  402. [01:47] <@theoretical> http://www.tradingview.com/x/haBjfGwi
  403. [01:47] <@theoretical> Go look at bitcoin on a 1 week graph on bitcoinwisdom using linear and then log scale
  404. [01:48] <@theoretical> That should answer your question :-)
  405. [01:48] <@theoretical> Log scale does the price changes as a %
  406. [01:48] <@theoretical> where as linear keeps the changes spaced apart evenly not on a log scale
  407. [01:48] <@theoretical> Looking at the RSI on that latest graph
  408. [01:48] <Danoded> I thought so
  409. [01:48] <Danoded> thanks
  410. [01:48] <@theoretical> http://www.investopedia.com/terms/h/head-shoulders.asp
  411. [01:49] <@theoretical> Had a typical head and shoulders pattern that says its going down big time
  412. [01:49] <@theoretical> and it went from over 80 down to 30!
  413. [01:49] == YesYes_ [5ac3ad52@gateway/web/freenode/ip.90.195.173.82] has joined #theoretical
  414. [01:49] == YesYes [5ac3ad52@gateway/web/freenode/ip.90.195.173.82] has quit [Ping timeout: 246 seconds]
  415. [01:49] <YesYes_> damn my browser crashed
  416. [01:49] <Danoded> can't find the indicators on cryptrader though
  417. [01:49] <thebroseph> And 30 meant buy!
  418. [01:50] <@theoretical> ok danoded
  419. [01:50] == p4n [ircap@unaffiliated/p4n] has joined #theoretical
  420. [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.
  421. [01:50] <@theoretical> go to the symbol in top left corner (the furtherst on the right symbol of a arrow climbing up a price)
  422. [01:51] <@theoretical> Yes chris
  423. [01:51] <p4n> hi!
  424. [01:51] <@theoretical> Hey p4n
  425. [01:51] <@theoretical> And it will open up a giant list of names
  426. [01:51] <@theoretical> Look for the Relative strength index
  427. [01:51] <Danoded> ok
  428. [01:51] <@theoretical> it will be 5th from the top on far right
  429. [01:52] <Danoded> Oh I'm such an idiot
  430. [01:52] <Danoded> thanks
  431. [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
  432. [01:52] <@theoretical> http://www.tradingview.com/x/n8lQFrMW
  433. [01:52] <@theoretical> So i could see where the next uptrend was going to start
  434. [01:52] <@theoretical> When the RSI managed to cross that line i drew
  435. [01:52] <@theoretical> I will do the same now for the 4 hr and show you guys :-)
  436. [01:54] <@theoretical> http://www.tradingview.com/x/YASSRr7q
  437. [01:54] <@theoretical> Now see my 4 hr RSI didn't predict this latest rise that we are seeing
  438. [01:54] <@theoretical> But my 1 Hr RSI DID
  439. [01:55] <@theoretical> this is why i use multiple time frames on the RSI to see what will happen
  440. [01:55] <@theoretical> in answer to alty question
  441. [01:56] <@theoretical> and once again we had a nice little chart pattern in there to tell us as well a double bottom
  442. [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
  443. [01:56] <@theoretical> so lets look at a new coin on rex thats doing well
  444. [01:57] <@theoretical> https://cryptrader.com/charts/bittrex/sdc/btc
  445. [01:57] <@theoretical> Shadow coin
  446. [01:58] <YesYes_> dont look like its a buy right now
  447. [01:59] <@theoretical> http://www.tradingview.com/x/eDm3GUK5
  448. [02:00] <@theoretical> http://www.tradingview.com/x/Ia8S4TVW
  449. [02:00] <@theoretical> agreed
  450. [02:00] <@theoretical> As most likely it will bounce off the RSI now and go down from here ^^
  451. [02:00] <Danoded> Ilike btc right now
  452. [02:00] <@theoretical> (newest chart)
  453. [02:00] <Danoded> *like
  454. [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
  455. [02:01] <@theoretical> But i think it will just be a weird time.
  456. [02:01] <Danoded> alright
  457. [02:01] <@theoretical> So i hope that shows you guys the power of the RSI
  458. [02:01] <thebroseph> My eyes have been opened
  459. [02:01] <Danoded> I feel like a god now with it
  460. [02:01] <@theoretical> now il teach you my Favorite indicator for spotting Resistance and also for support
  461. [02:01] <YesYes_> that was some excellent explanation
  462. [02:02] <thebroseph> I feel like a gambler
  463. [02:02] <Danoded> lool
  464. [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 .
  465. [02:02] <thebroseph> Cause I bought and sell without these tools
  466. [02:02] <@theoretical> exactly ^^
  467. [02:02] <@theoretical> to both chris and broseph
  468. [02:02] <Danoded> I would probably be a billionaire now
  469. [02:02] <@theoretical> Well without these tools thats all you are doing gambling...
  470. [02:02] <Danoded> if I used these tools
  471. [02:02] <@theoretical> And the whales sit there and use these tools and laugh at you
  472. [02:03] <thebroseph> Well danoded you are now in phase one of the dunning Krueger effect.
  473. [02:03] <@theoretical> I almost bought shadow earlier today then i check the RSI and went wait hell now
  474. [02:03] <ChrisPR> yeah
  475. [02:03] <ChrisPR> i mean I dont do daytrading with these tools you can check the prices first
  476. [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!
  477. [02:03] <thebroseph> So all whales use these things right
  478. [02:03] <YesYes_> yep thas true
  479. [02:03] <@theoretical> Yup and see which way it should be going ^^ even for long term investing this is the smart thing to do
  480. [02:04] <@theoretical> As long term investing you want to buy in at a bottom and sell much later.
  481. [02:04] <@theoretical> But the lower the bottom the more % gain
  482. [02:04] <thebroseph> So they use twitter and such and have an effect on rsi
  483. [02:04] <alty> good advice theo, the best trades always come after careful analysis and planning
  484. [02:04] <ChrisPR> yes
  485. [02:04] <@theoretical> Well most whales brosepth and worth there weight
  486. [02:04] <@theoretical> thanks alt :$
  487. [02:04] <@theoretical> I will now show you the easiest indicator to use
  488. [02:05] <@theoretical> Its called the ichimoku cloud
  489. [02:05] <@theoretical> You just have to set it up and it does everything for you!
  490. [02:05] <@theoretical> https://cryptrader.com/charts/bittrex/cloak/btc
  491. [02:05] <@theoretical> only on cryptrader hence why i use it so much
  492.  
  493. [02:07] == theoretical_ [65a24d0b@gateway/web/freenode/ip.101.162.77.11] has joined #theoretical
  494. [02:07] <theoretical_> hey
  495. [02:07] <theoretical_> Haha
  496. [02:07] <theoretical_> The cloud
  497. [02:07] == Xuthus [~X@unaffiliated/xuthus] has joined #theoretical
  498. [02:07] <theoretical_> its in the middle around 7 down from the top
  499. [02:07] <Xuthus> uh, is this a fan channel ?
  500. [02:08] == blast [~quassel@d47-69-112-203.try.wideopenwest.com] has joined #theoretical
  501. [02:08] <theoretical_> no
  502. [02:08] <ChrisPR> everyone just listen theo :) now we at the ichimoku cloud indicator!
  503. [02:08] <theoretical_> My Techincal analysis channel
  504. [02:08] <theoretical_> So once you choose the Cloud it will Look UGLY
  505. [02:08] <theoretical_> http://www.tradingview.com/x/cVPwivbp
  506. [02:08] <theoretical_> here is a unset up cloud
  507. [02:08] <thebroseph> She's taking us to school
  508. [02:09] <Valexus> I'm always a fan of lady theo
  509. [02:09] <theoretical_> You can't read any information off of this!
  510. [02:09] <theoretical_> so now il teach you how to set it up
  511. [02:09] == theoretical [65a24d0b@gateway/web/freenode/ip.101.162.77.11] has quit [Ping timeout: 246 seconds]
  512. [02:09] <thebroseph> Ah shit
  513. [02:10] <Xuthus> darkcoin assassins got her
  514. [02:10] == Uponone [62a0d3b5@gateway/web/cgi-irc/kiwiirc.com/ip.98.160.211.181] has joined #theoretical
  515. [02:10] <Danoded> damn
  516. [02:11] <Danoded> I want to eat
  517. [02:11] <thebroseph> "They know too much! Stop them!"
  518. [02:11] <Danoded> but I don't want to stop listening
  519. [02:11] <theoretical_> http://awesomescreenshot.com/09338wgfbd
  520. [02:11] <theoretical_> haha
  521. [02:11] <ChrisPR> Theo can you set this cloud up at bitcoinwisdom ? possible?
  522. [02:12] <theoretical_> http://awesomescreenshot.com/09038wgt3e
  523. [02:12] <theoretical_> Not possible
  524. [02:12] <theoretical_> Hence why i use cryptrader
  525. [02:12] <theoretical_> http://awesomescreenshot.com/09038wgt3e this is first screen shot
  526. [02:12] <theoretical_> Go to settings
  527. [02:12] <theoretical_> the little gear next to the cloud words
  528. [02:12] <theoretical_> then change all of these http://awesomescreenshot.com/09338wgfbd
  529. [02:12] <theoretical_> and it should look like this http://awesomescreenshot.com/02e38wgq88
  530. [02:13] <theoretical_> now we have one bad ass looking cloud http://www.tradingview.com/x/zv4gQYHc
  531. [02:13] <theoretical_> If the price is below the cloud then it acts as Resistance and needs to be broken through
  532. [02:13] <theoretical_> If its below the price it acts as support for the price
  533. [02:14] <theoretical_> Obviously you need to look at the cloud in multiple time frames
  534. [02:14] <theoretical_> The longer the time frame
  535. [02:14] <theoretical_> The stronger that Resitance or Support
  536. [02:14] <theoretical_> Il show you a 4 hour cloud
  537. [02:15] <Danoded> didn't realise you were back
  538. [02:15] <Danoded> need to catch up
  539. [02:15] <theoretical_> http://www.tradingview.com/x/IpAJpuTT
  540. [02:15] <theoretical_> hehe take your time
  541. [02:15] <theoretical_> So its a different story for where that cloud support is dependant on the time frame you choose to use
  542. [02:15] == voxelot [6bd7c950@gateway/web/freenode/ip.107.215.201.80] has joined #theoretical
  543. [02:15] <Danoded> thanks
  544. [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
  545. [02:16] <theoretical_> Then a 1 hour chart can tell you with correct Fib lines and EMA and indicators in place
  546. [02:16] <theoretical_> And 1 hour you get a bigger picture.
  547. [02:17] <thebroseph> So one should take a look at all these tools to form a properly informed decision
  548. [02:17] <thebroseph> Otherwise is guessing/gambling
  549. [02:17] <theoretical_> Yes
  550. [02:18] <theoretical_> And the more you practice
  551. [02:18] <theoretical_> The more you will know which indicator is relavent to look at
  552. [02:18] <theoretical_> Now as you are all learning
  553. [02:18] <theoretical_> I would check every indicator before you make a decision
  554. [02:18] <theoretical_> and see what could happen
  555. [02:18] == blast [~quassel@d47-69-112-203.try.wideopenwest.com] has quit [Ping timeout: 255 seconds]
  556. [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.
  557. [02:19] <theoretical_> And then its question time
  558. [02:19] <thebroseph> Damn yesterday I sold and bought and managed to accumulate more cloak now I realize I was absurdly lucky
  559. [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
  560. [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
  561. [02:20] <theoretical_> the more times it touches that trend line The more true it is!
  562. [02:21] <theoretical_> http://www.tradingview.com/x/jBfXv90v
  563. [02:21] <theoretical_> Those are the 100% true trend lines for Cloak right now
  564. [02:21] <ChrisPR> haha
  565. [02:22] <theoretical_> And sure enough at this last pump it went over that trend line and concequently had to drop below
  566. [02:22] <ChrisPR> everyone buy now!!!
  567. [02:22] <theoretical_> Make sure your graph is in log form if you draw lines
  568. [02:22] <theoretical_> This is especially important for Trend lines
  569. [02:22] <theoretical_> To change your graph to log on crypt trader
  570. [02:23] <theoretical_> the button to the left of where the indicators are
  571. [02:23] <theoretical_> the gear
  572. [02:23] <theoretical_> then click scales
  573. [02:23] <theoretical_> then click Log
  574. [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
  575. [02:26] <theoretical_> http://www.tradingview.com/x/C68i93xu
  576. [02:26] <theoretical_> So thats what i normally sit there with my graph looking like
  577. [02:26] <theoretical_> and just change the time intervals but i have all 3 of my indicators ready
  578. [02:26] <theoretical_> I have my fib retacment with extension ready
  579. [02:26] <theoretical_> And my trend lines showing
  580. [02:26] <theoretical_> The only thing missing from that graph is my 4 EMA
  581. [02:27] <theoretical_> if you want to add EMA to Cryptrader
  582. [02:27] <thebroseph> I'm gonna practice with tiny btc amounts on other coins
  583. [02:27] <theoretical_> Its called your double exponential moving average
  584. [02:27] == voxelot [6bd7c950@gateway/web/freenode/ip.107.215.201.80] has left #theoretical []
  585. [02:27] <theoretical_> And to edit the Paramaters
  586. [02:27] <theoretical_> you change the length of it in settings
  587. [02:27] <theoretical_> good idea broseph
  588. [02:28] <theoretical_> Now heres the fun part
  589. [02:28] <theoretical_> Questions
  590. [02:28] <theoretical_> Questions
  591. [02:28] <theoretical_> Questions
  592. [02:28] <thebroseph> Theo could you pastebin this so I can reference it during practice ??
  593. [02:28] <ChrisPR> Honestly I made all 3 indicators now for cloak and I am happy to try them tomorrow
  594. [02:29] <thebroseph> I'm gonna trade plankton food
  595. [02:29] <Danoded> Yeah broseph
  596. [02:29] <theoretical_> I am going to be doing that in a twitter with all of this lesson
  597. [02:29] <thebroseph> The cheapest coin of all
  598. [02:29] <p4n> wow, all this info is amazing
  599. [02:29] <theoretical_> if you guys want any advice then please feel free to PM me at any time
  600. [02:29] <theoretical_> when im online
  601. [02:30] <theoretical_> weather it be to check your graph. Do some TA on a coin or anything
  602. [02:30] <YesYes_> whats your twitter?
  603. [02:30] <theoretical_> Always happy to help
  604. [02:30] <p4n> i lost the fibo part of the lesson :(
  605. [02:30] <thebroseph> Thanks theoretical. What's your twitter ? Would like to add you to notify alerts
  606. [02:30] <theoretical_> 1 sec p4n i am pastebin it
  607. [02:30] <p4n> :D:D:D:D:D yay! thx!
  608. [02:30] <Danoded> I know thank you so much for this tutorial, your time and effort
  609. [02:31] <ChrisPR> Really Amazing! looking forward to the next one