In chapter 1, I helped you identify your risk level and taught you about other market participants
and how they behave in the market. We also discussed a bit about cryptocurrencies and timeframes
and started reading a chart.
My goal was for you to get to know your risk level and to find out more about the entities that trade
alongside you.
In the next chapter, we’re going deep—right into technical analysis, talking about TradingView,
candle patterns, moving averages (MAs), the Relative Strength Index (RSI), and much, much
more
Exercises
1. After taking the risk assessment questionnaire, ask yourself (and write down) three things you’re doing to keep your emotions in
check in real life. I know a couple that say that when they want to fight, they speak in pirate English. Think: “Ye be mighty pushy!
Belay that!” ... or just use The Pirate Translator here: https://pirate.monkeyness.com/translate.
2. Identify 3 daily candles in TradingView, then go to the 4-hour and 1-hour timeframe and look at the candles that formed them. See
how the low of the bigger candle was formed using the low of the lowest candle in the group, how the high was formed, and so
on. How does the price move inside that big candle? Is it going directly to the close? Is it pushing toward the high, then dropping
to the low, then jumping to the close?
3. Identify a big news event in crypto (which happened at a specific hour, on a specific day). Tip: You can look for big Fed
announcements or a black swan event (such as the crash of FTX). Check on the chart how the price reacted to the news and for
how long. Imagine the market participants getting fueled by the news and trading during those times. Which market participants
were involved? What was their thought process?
4. Go to TradingView and open the daily chart for BTCUSD. First, try to identify the periods I’ve shown you in the screenshots
about the bear market and the bull market, and then, go to a lower timeframe (4 hours or 1 hour) and identify 2 bullish trends, 2
bearish trends, and 2 sideways trends