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Kc  · 09/01/22

Crab Market πŸ¦€ / AltcoinTrading.NET glossary

Crab market in ATNET Crypto glossary. What do crypto traders call Crab market?
Altcoin Trading Blog

Key Points / Crab Market πŸ¦€

  1. Crab is choppy sideways market

  2. Tools for Crab Market πŸ¦€: #tradingview 

In trading jargon, crab market stands for choppy sideways market, market that lacks direction and is not trending.

What is the best way to make use of a crab market?

If you are an active trader and want to keep trading, the best strategy would be a short term one. A short term strategy like scalping is the best choice because the market isn’t trending anyway.

One advantage of short term trading is that you can easily automate it.

Best Tools for Crab Markets

  • Trading Platform: Set up a scalping bot at Coinrule
  • Technical Analysis: Wyckoff, Support/Resistance, Boxes
  • Charting App: Tradingview

Crab market vs Bear market

Crypto traders distinguish between the crab market and the bear market.

The crab is taken to be milder, without drastic capitulations. Just a long stretch of crypto prices being suppressed, all local highs sold.

  • Bear market (in a crypto trader’s view) starts with a fall from the blow-off top and then drags on for 4 years.
  • Crab market is an anticlimax, months and months of meh.

Trading Techniques for Ranging Markets

One of the old but still well fitting descriptions of a typical ranging market can be found in the Wyckoff method. The Wyckoff method is focused on longer term trades and the crux of the range trading is the identification of the phase in which the market is.

A market can be ranging because there is an accumulation or reacummulation going on, after which a bull trend follows.

Alternatively, a market can be ranging because there is a distribution starting, after which a bear trend follows.

An indepth look at Crab Market πŸ¦€ is here.

Divergences in Crypto Trading (Divergence Cheat Sheet inside) - Divergence is a disagreement between price and an oscillating indicator such as MACD or RSI. It is not strong enough an indicator to enter a position, but it gives an idea of the state of the market.
Script Spotlight: Automatic Divergences - In this series we are picking scripts for technical analysis that recently popped up in the TradingView daily popular feed.
Multiple time frame analysis: Trading several timeframes at the same time - On why it's constructive to trade multiple time frames at the same time and how to manage the stack of your positions and orders.
Wyckoff trading method for ranging markets - Fully reworked primer on ranging crypto markets. Includes Wyckoff method for market phases and recommended TradingView scripts.
Strategy: Technical Analysis past ATH with Fibs - Now that we are past ATH levels again, let's reiterate how things *really* work around here.