Chart Reading for Investing

Junk, Memes, and Poop: it’s all in the coin

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    • #721
      Crypto Link
      Participant

      To begin, the common attitude towards assets – if you can even use the connotation- like Shiba coin or Doge coin are ones of disgust, irreverence, and belittlement. They are just meme coins after all. Right?

      Well, they are. In the same way that they are meme coins, the Forex pair AUD/USD is only a measurement – a ratio – of how many USD units one may buy for AUD units. In the same respect, SPX is merely an index weighing the 500 stocks; however, these are all common in many ways; one respect in which they all bear relation is that they contain a time axis and a price axis. They all contain ratios, constants, and other aspects related to proportion and harmony.

      One pertinent abstract example is as such; suppose the value of the SPX index moves from 2000 to 1000; that is a specific number drop in value; half of that number is 500, for 2000-1000 is 1000, and 1000 divided by two is 500: harmonics of two are very important values in symmetry. Let us say that at that specific harmonic of two, the value stalled for many months. It rose from 1000 then stalled at the value of 1500 for many months.

      Let us go to Shiba coin; using the data from the Poloniex exchange, in May of 2021 Shiba coin made a relative high price of 3500 – units in terms of the relative price of the asset- at the actual USD dollar equivalent of .000035. In October of 2021, Shiba coin made a high again; this high was 8845. Two point five times the price of 3500 is 8750. The actual ratio of the previous high to the next high is 2.52714286 – 8845/3500.

      That is the first concept, and that is the culmination of the lesson for today. Look at your own charts: on your exchanges or on charting services. Look at the ratios of the highs, lows, and congestion periods. That is the take home extension of this lesson.

      Inexhaustive Book list:
      Scott M. Carney – The Harmonic Trader
      Scott M. Carney – Harmonic Trading Volume 1
      Scott M. Carney – Harmonic Trading Volume 2
      Scott M. Carney – Harmonic Trading Volume 3
      Michael Jenkins – Geometry of Stock Market Profits
      Michael Jenkins – Chart Reading for Professional Traders
      Michael Jenkins – Complete Stock Market Forecasting Course
      Bill Williams – Trading Chaos
      Bill Williams – Trading Chaos – 2nd Edition
      Bill Williams – New Trading Dimensions

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