Key Points / Crypto Market Psychology
-
Market psychology is a term that describes the prevailing tendencies on a given market.
-
Market psychology is effectively an aggregate of trading decisions made by individual traders.
-
Tools for Crypto Market Psychology: #cryptowatch
Market Psychology vs Trading Psychology
Trading psychology and market psychology are two different, but related terms.
Read the ATNET Glossary on Trading Psychology with book recommendations.
As a trader, your individual mindset and decision making process contributed to the existence of the market and in one way or another becomes an influence of the market psychology.
- You may be in agreement with the prevailing market tendency, act on it and make this tendency even stronger.
- You may be in disagreement with the aggregate market tendency, act on it and in this way create the opposite side of the book that is required for the market to exist.
An indepth look at Crypto Market Psychology is here.
More on Crypto Market Psychology
Crypto Trading Scams: Most common scams in 2022 - While the decentralized system has its advantages, the fact that it is not regulated brings about certain issues.
What is grid trading? Where to run a grid bot to trade crypto? - Intro to grid trading strategies, the meaning behind the buzz word and best crypto grid bots. Also, how to run a grid bot on the cheap.
Wyckoff trading method for ranging markets - Fully reworked primer on ranging crypto markets. Includes Wyckoff method for market phases and recommended TradingView scripts.
Shadow System Scalping - Simplified Grid Trading: Does it work in crypto? - The Shadow system takes advantage of the small shadow that exists between the open price and the high or low of the day, and scalps a fixed amount of that movement every day.
Crypto DCA: Complete Crypto DCA Strategy & Tools Guide (Updated) - Why you want to DCA instead of HODL and where to do it best (incl. auto-DCA)