## [Where the trading session starts](#start)

### [Market Stat Analysis](#market-stat)

>Time frame: intraday
>Main search engine: Speed Print

Any trading session begins with a global, brief market review.\
\
Open the <a href="https://resonanceholding.com/blog/tools/market-stat" target="_blank">Market Stat</a> tool, and set the range of 144 or 288 days on the timeframe 1D –1 Day.\
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Our task is to understand what is happening in the market globally and to understand the dynamics. That is why we evaluate the largest money indices:

-	ALT/STB (or ALT/MONEY)
-	BTC/STB (or BTC/MONEY)

We look at the delta histogram and the dynamics of its change. In this case, we see that both indices are dominated by sales (the histogram is red). But on BTC/STB the sales are decreasing over time, as well as on ALT/STB. 

![market-stat-histogram](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/market-stat-histogram/public)

Tight long sales or purchases on large timeframes define big trends. On smaller timeframes, the trends are smaller.\
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Periodic spikes of sales or purchases on big sales are either position fixes or local minor trends.\
\
The same spikes will occur on smaller timeframes. In this strategy, they are exactly the ones you should pay attention to. If there is a spike, it means that the participants have made efforts (have spent money) and satisfied their needs, and therefore, potentially, they will not do it again.\
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Pay attention to the volume ratio, as participants always pull the market to where there is more money. In more cases, ALT/STB is higher in volume. But more often is not always the case. You must also remember that the market doesn't always follow BTC/STB, as Bitcoin doesn't always involve more money.\
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Therefore, the group with the largest amount of money dominates the market now and will pull the other assets to itself. 

![market-stat-volume-area](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/market-stat-volume-area/public)

### [Balance indices](#index-balance)

The market is most often in balance when supply and demand do not deviate too much. But if one of the parties makes a big effort to buy or sell, it affects the balance. Most often, if the balance changes, the price also changes. The balance sheet helps us to understand the general trend of the volume movement, because there is more and more liquidity in the market and it takes more and more money to move the price by a decent amount of interest.

> The balance line is the blue on the delta histogram.
> Balance is the ratio of purchases to sales. The market always tends to balance, towards 50%. 

So when an asset is far off balance, it means that a lot of money has been spent to shift the balance. And even though money is printed, it runs out in the moment and the opposite party takes over.\
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If the balance shifts upwards, it means that buyers are spending money to purchases (by market orders). When the balance reaches extreme values - it means that market sales will change the cycle of market purchases.\
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Our next task is to decrease the timeframe and estimate delta and volume.\
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Analyzing the delta histogram can be difficult, so you need to switch the histogram to cumulative delta mode. 

![market-stat-cumulative-histogram](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/market-stat-cumulative-histogram/public)

> Cumulative delta is a mode in which past values are added to the current value, so it looks like a wave. This mode allows you to understand the dynamics of the delta indicator change. The difficulty of analysis is due to the fact that it is not easy to calculate the total sum in your head, and not everyone will be able to understand the general dynamics by numbers or multidirectional bars of the histogram. 

### [RTT Analysis](#rtt-analysis)

Set up a preset that is convenient for you. We believe that the best option is to use three cluster charts simultaneously on three different timeframes. 
-	1m 
-	5m 
-	30m

Each of the timeframes must have a data type:
-	1m - delta by number of trades
-	5m – delta by volume
-	30m – delta by volume

You can open additional charts in the header of the main cluster chart:

![cluster-chart-settings](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/cluster-chart-settings/public)

You can change the data type in the cluster chart in the cluster chart settings:

![cluster-chart-data-type](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/cluster-chart-data-type/public)

You also need to open the order book. This tool is called "Market Depth" on the platform.

![settings-window](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/settings-window/public)

I set the range slider to 15.97. This range shows the depth of the order book, sufficient for any asset when trading this strategy.

 ![depth-density](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/depth-density/public)

Additionally, I also have the FTT index open in the "Delta, BTC" mode on the 5m timeframe and the BAS on the 5m timeframe.

![ftt-and-bas](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/ftt-and-bas/public)

It would help if you had these tools as additional markers.\
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According to the FTT index, we estimate whether there are a lot of assets in the market now, where accumulations have been formed. If there are a lot of assets, it means that there have been synchronized purchases and sales in the whole market. This sign will be an additional argument for opening a position. In this strategy we will be interested in the red bars in the histogram. And the bigger they are, the better they are.\
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The BAS graph shows the change dynamics of the limit order amounts. In this strategy, the BAS is a rather "slow" indicator. But if the red line is higher than the green one, it means that there are more sellers, which is also a good argument for opening a short position.\
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The primary search tool for this strategy is **Speed Print**.\
\
To set it up, we need to filter the pairs we want by entering in the filters:
-	"Unified ticker" – */USDT 
-	"Exchange" – Binance
-	"Price change, in %, From" -0.3.
-	"Coefficient by deals, From" – 2-3

This means that the table will filter out unnecessary pairs, leaving only those that are on the futures and those that have relatively high volatility. And the parameter "Ratio by deals" will help us filter out those tickers, where there is an excessive and abnormal number of deals.

![speed-print-table](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/speed-print-table/public)

Then simply review each result that appears in the table.\
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The Speed Print tool also has a graph. It is also important for us. Initially, it will open in the "Number of deals" display mode.

> Number of deals per minute. 

![speed-print-chart](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/speed-print-chart/public) 

We are interested in the increase in activity (growth of the histogram), because it is active participants who will push the price with their market orders.

>It is important to note that market analysis according to this strategy does not end at the beginning. It lasts throughout the entire trading session. 

## [Basic principles of asset selection and filtering](#main-principles)

We are interested in shorting assets that have been actively bought, pushing the price up, and then the buyers were replaced by sellers.\
\
Let's analyze this example on the FILUSDT pair. This is the picture we saw in RTT:

![cluster-chart](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/cluster-chart/public)

**The first condition: growth on all three timeframes.**

![cluster-chart-growth](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/cluster-chart-growth/public)

**The second condition: formation of accumulations at the peak of growth**: either one or several large clusters. It is desirable that accumulations are on the delta types in quantity and in volume.

![cluster-chart-area](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/cluster-chart-area/public)

**The third condition: we have a decrease in purchases and a decrease in sales in Market Stat**.

![market-stat](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/market-stat/public)

In general, you need to see that shoppers "get exhausted ". So pay attention to the size of the new batch of purchases. If there are fewer purchases, it is a good sign.\
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In the screenshot below, you can clearly see that the purchases around 18:00 07/10/2023 are larger in volume than the ones further out. 

 ![market-stat-area](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/market-stat-area/public)

## [How to ultimately select assets](#assets)

There is no grail. Therefore, our task is simply to open positions on those assets that pass the checklist. If the condition is not passed, then the position shall not be opened.\
\
We must remember that such deals occur in the market every day. 
Not once a year, not when the market rises or falls, but EVERY DAY.  
Even on weekends 😁

## [How and when to enter a position](#open)

There can be no perfect entry into a position because we are at least limited by the asset's liquidity. It is recommended to enter the market.\
\
But within this strategy, you can also use limit orders to enter a position. Sometimes the price is pushed quickly, so you may not even have time to enter the market, and sometimes balance between supply and demand may be at a local maximum for a relatively long time.\
\
The best moment is to enter a position near the local maximum: when buyers' purchases no longer lead to the growth and sellers' sales have not yet had time to significantly affect the price decline.

### [How to set stops and takes](#stop-and-take)

The logic of the strategy implies that:
1. Either those who bought lower before the move start selling their volume.
2. Or those who bought very early, saw the right price, and also decide to sell.
3. Or those who borrowed on margin also sell.

As they all sell to those who keep buying, large clusters are formed on the chart. And it is implied that new purchases will not lead to further price growth.\
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Therefore, stop-loss can be placed slightly above the price of large clusters. 
The distance from the entry point to the stop loss is our risk.\
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Our target is 1.5-5 times larger than the stop loss size.\
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Why isn't there a clear size, like 1 to 2? This is because the market is about liquidity. Sometimes the market runs very well and directionally, and we can take more than we originally planned. And sometimes it happens that 1 to 1 is all we managed to take. So you can determine the amount of profit along the line.\
\
This approach does not also imply moving the stop loss. It is better not to use trailing stop. Otherwise, it will kill the entire risk/profit ratio at the distance. Moving the stop to breakeven is also not a suitable option.\
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Can I move a stop after I have opened a position and placed a stop? No, you can’t.

> You should identify the stop immediately. Learn to solve these things immediately and quickly. 

Remember: the stop is our friend. Even if more than half of the deals have been knocked out by the stop, it does not mean that the deposit will be in the minus. Remember about the ratio.\
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Below is an example of limiting losses and using the ratio. Even if 7 out of 10 deals will be by the stop, with a ratio of 1 to 3 at the distance will be a profit.

![risk-management](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/risk-management/public) 

> Limiting losses is important. If you don't, you will pay with your entire deposit.

### [How to hold a position](#hold)

The rubric: "easier said than done" 😁\
\
The answer to this question is simple and yet complex. The simplest recommendation is to learn not to obsess about the coin and to follow a strategy. \
\
Strategy means a constant search for entry points. Therefore: **have found a position => open => look for the next coin**.

### [Whether and how to take volume](#gain)

The rubric: "easier said than done" 😁\
\
It is necessary to divide it into two approaches at once:
1. We take up, because initially we entered with a part of volume and limit.
2. Wwe take up as the price drops (on pullbacks or stops).

If it's a surplus because we initially took a smaller volume, that's fine. This way we stay within our risk. But there is a chance to fall short or fail to execute at all.\
\
If you take up as the price goes down:
- there is a risk of taking up and increasing the potential loss one coin at a time
- if we take up the volume as we go down without stopping, we reduce our potential profit, because in case of price reversal we will fix losses on the lower take-ups.\
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A take-up on a decline is acceptable only if we see that sales increase at stops or small pullbacks.

## [How and when to exit a position](#close)

The best way to exit a position is when the sellers have stopped selling actively and market buyers have stepped in. This way it may be possible to get as much profit as possible. But with this approach, there is a risk of growing (imposing) the desire to be greedy and bargain with the market for a hundredth of a percent of price movement, which at the distance will only lead to the ratio deterioration and increase the number of stops.\
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You should also keep in mind that when the deposit size increases, the deal itself can influence the price, which makes it impossible to exit at the very bottom, because closing a short position is a purchase market, and purchases push the price upward.\
\
The best exit is to exit at take-profit plus a ratio of 1 to 1.5 to 5

### [Risk management](#risk-management)

Adherence to risk management is the most important thing in any strategy. 

>Transaction risk up to 2%
>Coin risk up to 3%
>Day risk up to 4-5%

After exceeding the risks, you should immediately end the trading session.\
\
This item is the shortest as it contains only 3 digits.\
\
However, observing this very point will bring the desired profit at a distance.\
\
Since a trading session during which the buying potential has not been objectively determined can bring many stops in a row, and even the loss of all capital.\
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And once again: there will be statistically losing sessions all the time. But it is precisely the risk limits that will help the deposit continue to grow.  

![risk-management](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/risk-management/public)

If you have any questions about strategies, we are happy to answer them in <a href="https://t.me/resonanceholding_com" target="_blank">Telegram chat</a>.

Link to free interactive training: https://resonanceholding.com/ru/edu/mycourse

<a href="https://resonanceholding.com/ru/edu/mycourse" target="_blank">Free interactive education</a>.
<a href="https://youtube.com/@resonancehldg" target="_blank">YouTube platform</a>.

Step-by-step strategy for intraday trading, as well as shorts using the Speed Print tool, as well as additional analytical tools of the Resonance platform.

Speed Print: an intraday short trading strategy

## [What is the BAS search engine](#bas-search-engine)

Resonance offers a range of tools for intraday, middle-term traders, and portfolio investors. In this article, we will examine the BAS tool, which is useful for any type of trader as it allows you to analyze both scalping and more long-term ideas without limitation.\
\
BAS (an acronym for Bid Ask Summary) is a search algorithm that allows you to analyze the dynamics of order book data for any asset on the available exchanges.

## [How to set up the BAS](#bas-setup)

The tool consists of:
1.	A table with filtering
2.	A line chart;
3.	Bar chart (delta).

### [Table settings](#table-settings)

You can add or hide columns in the Settings window. The following data is available for analysis:

-	Sum of 100 Bids and 100 Asks for an asset 
-	Sum of 500 Bids and 500 Asks for an asset
-	Difference between 100 Bids and 100 Asks
-	Difference between 500 Bids and 500 Asks
-	Bid-Ask average difference between 100 assets and 500 assets
-	Delta difference (difference in differences) and Delta average difference for 100 assets and 500 assets

![BAS_table](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/BAS_table/public)

The table has a ticker filter by group and from and to filters for numerical values. You can also sort any column by simply clicking on the column name.\
\
There is a Common Ticker Mode icon in the table header. This allows the selected pair in any instrument to be displayed in all other instruments. 

### [How to set up the charts](#chart-settings)

The line chart display is required to estimate the sum of the volume on bids and the sum of the volume on asks. To open the line chart, click on the Unified Ticker button in the asset table.\
\
In a line chart of sums: 
-	The green line is the sum of buyers' limit order volumes.
-	The red line is the sum of sellers' limit order volumes.

 ![BAS_linear_chart](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/BAS_linear_chart/public)

These sum charts are also available as line charts:
-	Bid Ask 100 – the sum of 100 buy and sell limit orders
-	Bid Ask 500 – the sum of 500 buy and sell limit orders

To select the desired chart type, click on the Line button.

![BAS_linear_chart_of_difference](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/BAS_linear_chart_of_difference/public)
 
To change the chart to a bar chart, click on the Delta by volume button.

![BAS_histogramm](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/BAS_histogramm/public)

Meaning of the colors: 

-	Green – delta is positive. The volume of limit orders from buyers is greater than the volume of limit orders from sellers.
-	Red – delta is negative. The volume of limit orders from buyers is smaller than the volume of limit orders from sellers.

General Scale Mode and Single Scale Mode are also available in the chart settings. 

1.	General Scale Mode displays the Bid and Ask charts between the minimum and maximum values of both charts. If the difference in values is large, changes in the sum of limit orders may not be visible.
2.	Single Scale mode details changes in the values and overlays the Bid and Ask charts. This makes it easier to see changes in the sum of limit orders. The right coordinate scale is hidden for easier viewing.

##[How to use BAS in trading](#bas-how-to-use)

Once you understand the tool's settings, it's time to find out how exactly BAS helps you trade and, more importantly, **gives you additional arguments for entering a trade**.\
\
Below we look at real market situations for short and long trades. The cluster chart for MKR/USDT asset on the Binance exchange shows a decrease in buying during the rally. Have the buyers run out of steam and you need to look for a short entry? Nothing of the kind, let's take a look at the dynamics of limit orders using BAS.

![Анализ_по_БАС_1](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Анализ_по_БАС_1/public)
 
The dynamics show a sharp change in the buy limit orders (green line, which represents the sum of bids), which means that buyers are interested in this price. And we expect it continues to move in long.

![Анализ_по_БАС_2](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Анализ_по_БАС_2/public) 

What is the result of entering the trade?

![Кластерный_график_3](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Кластерный_график_3/public)

Almost 10% of the entry point, and that's intraday. Now let's figure out whether this approach works for middle-term trading.\
\
Below is a daily cluster chart of the LPT coin to USDT on the Binance exchange. It shows large Delta selling, so does this mean further declines? Possibly, but let's take another look at the dynamics of limit orders in BAS.

![Кластерный_график_4](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Кластерный_график_4/public) 

There is a sharp increase in buy limit orders in the search engine. A buyer is interested in the price range – so, we open a long position.

![Кластеры_и_БАС_5](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Кластеры_и_БАС_5/public)
 
And let's take a look at the result: 150% growth.

![Рост_по_БАС_6](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Рост_по_БАС_6/public)

Certainly, we cannot predict how much of a percentage increase % a particular asset will give, but we can see the imbalance of limit orders in time and make money from it.\
\
If you just look at the cluster, you can see what is happening with the market orders, but if you look at the BAS, you can see the limit orders and their activity. This is why BAS is an essential part of the analysis.\
\
You can find more information in the [online university](https://resonanceholding.com/edu) or you can use the [mentorship](https://resonanceholding.com/account/prices?tab=mentorship) and make out the material individually with our trusted author Resonance.

In this article, we analyze the BAS tool, which will be useful for any type of trader, because it allows you to analyze both scalping and longer-term ideas without restrictions.

BAS: how to apply it in practice and what is it for?

Until now, crypto trading has been a privilege for experienced traders knowledgeable about the crypto market. Bidsbee, our new partner, is changing it!\
\
This crypto social trading platform is a perfect entry point in the world of crypto trading for beginners and a wonderful opportunity for experienced traders to generate new sources of income and benefit from the most extensive set for trading crypto.

## [What Is Bidsbee?](#what-is)

<a href="https://www.app.bidsbee.com/sign-up?refId=Resonance&utm_source=newsletter&utm_medium=paid_adv&utm_campaign=resonance" target="_blank">Bidsbee</a> is an ultimate crypto social trading platform that moves crypto trading to a qualitatively new level. Along with an extensive set of functionalities that allow not only experts but also complete newbies to benefit from a highly volatile crypto market, Bidsbee ensures a safe crypto trading environment with an option to test the platform before delving into trading with real money.

### [Bidsbee Offers Traders All the Functionality They Need](#functionality)

Bidsbee aims to embrace all traders independently of their experience. Therefore, it has developed an extensive set of functionalities to ensure everybody can find something for themselves.

### [Trading Terminal](#trading-terminal)

An advanced crypto trading terminal expands the standard functionality of a centralized exchange and allows you to manage all your CEX trading accounts in a single place.\
\
There, you can place all types of orders, set up trailing, and benefit from using crypto trading algorithms. This functionality is perfect for experienced traders who know how to seize all the available market opportunities.

### [Copy Trading](#copy-trading)

The copy trading functionality is created for beginners and those who don’t have time to monitor the market. To start copying the orders of a trader, you need to:

- Register an account on Bidsbee
- Connect your CEX accounts by using API keys
- Pick a trader to copy
- Subscribe to them 
- Set up limits for copying and limits for losses

![copy-trading-Bidsbee](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Entry-point-in-crypto-Bidsbee/public)

After that, the orders of the selected expert will be copied to your profile. You can unsubscribe from a trader whenever you want.\
\
If you are an experienced trader, you can benefit from the copy trading functionality, too. Create a Public Trader profile, set up a subscription fee (as much or as little as you want), and trade like you usually do to collect some statistical data. Once the needed data is collected, the profile becomes visible to users, and they can start subscribing to you by allowing you to benefit from each user. 

### [Trading Signals](#trading-signals)

Timely and reliable trading signals delivered to the right channel allow you to capture all the opportunities of the constantly changing crypto environment. Bidsbee allows you to pick from an extensive range of crypto signals, and as soon as a buy or a sell signal is generated, it is sent directly to the Telegram channel.\
\
With them, you can be sure that you won’t miss a single opportunity to earn.

### [Trading Bots](#trading-bots)

If you prefer to automate your crypto trading experience, we recommend paying attention to the extensive set of Bidsbee’s bots. Pick one of several bots, purchase them, set them up, and benefit from whatever opportunity comes.

![Come-trade-with-Bidsbee](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Come-trade-with-Bidsbee/public)

## [Additional Perks](#perks)

**Trading with a virtual balance**\
\
Those who want to test the platform or brush up their trading skills can trade with a virtual balance without risking real assets. In such a case, you don’t risk real money (but you aren’t earning real money, either).\
\
**No charges on your revenue**\
\
Bidsbee doesn’t charge a share of your revenue no matter how much you earn. You pay only for purchasing a Pro package and a subscription fee for an experienced trader if you choose copy trading.\
\
Traders who have a Public Trader profile are charged 15% of their income earned through subscription fees.

## [Trading in a Safe Non-Custodial Environment](#non-custodial-environment)

Bidsbee offers non-custodial services. It means that it doesn’t collect nor store users’ funds. Neither does it require a (Know-Your-Customer) KYC or any other verification process. If you have a CEX account, it means that you’ve already completed all the verification steps and complied with all the requirements.\
\
The platform offers a safe trading environment proofed by Hacken expertise. Thus, traders can focus on increasing their earnings while Bidsbee takes care of the rest.

## [Disclaimer and Risk Warning](#disclaimer-and-risk)

Crypto trading is a risky activity and thus, Bidsbee doesn’t guarantee any profit even in the best market conditions. Even when copying a professional trader, you can experience losses if the trader makes a mistake. This is why it is recommended to do your own research and assign only those funds for trading that you can afford to lose. Bidsbee, from its side, offers all the tools to minimize risks and maximize all existing trading opportunities.

## [Plans for the Future](#plans)

The Bidsbee team claims that future platform development will be determined by the demands rising in the market and the needs of users. With the team’s ambitious plans and their potential, we are sure that the platform will continue delivering top-quality services to its users.


Great news! Bidsbee, a social trading platform with a copy trading functionality, is LIVE now! Its trading experience is truly exceptional, offering advanced tools that most CEXs can't match. Copy trading is a great way to grow a trading community and monetize trader's skills.

Bidsbee, Our Crypto Social Trading Partner, Is Live!

## [Now official partners](#partners)
 
Trader, we have great news for you!\
\
The Resonance analytical platform and the <a href="https://goodcrypto.app?utm_source=resonanceholding.com&utm_medium=referral&utm_campaign=collaboration_ann" target="_blank">GoodCrypto</a> app have become official partners!\
\
**What does this mean?**
 
Now, analyzing volumes with Resonance and making sound financial decisions you can trade with the GoodCrypto app, which not only supports 35+ exchanges but also offers a number of advanced features. By using the best tools from both platforms, including GoodCrypto's crypto trading bots, you have the chance to increase your income by improving your existing trading strategy.

## [What is GoodCrypto?](#what-is-goodcrypto)

<a href="https://goodcrypto.app?utm_source=resonanceholding.com&utm_medium=referral&utm_campaign=collaboration_ann" target="_blank">GoodCrypto</a> is a powerful multi-exchange trading and portfolio management app for crypto traders, offering a range of trading tools for more than 35 top-tier spot and derivatives exchanges.\
\
The app takes pride in delivering even the most advanced features within an intuitive and easy-to-set-up interface, ensuring a fully-featured and seamless user experience.\
\
GoodCrypto enables real-time portfolio tracking and provides a professional-grade trading terminal equipped with a comprehensive suite of advanced trading tools to empower traders in executing trades and making informed decisions based on real-time data. You can trade spot and futures markets in a single interface with the best trading tools such as:

- <a href="https://goodcrypto.app/binance-trailing-stop-order/?" target="_blank">Trailing stop orders</a> utm_source=resonanceholding.com&utm_medium=referral&utm_campaign=collaboration_ann
- Stop Loss and Take Profit combinations
- Advanced charts and technical indicators
- Smart alerts, etc.

One of the standout features of GoodCrypto is its **<a href="https://goodcrypto.app/binance-trading-bot/?utm_source=resonanceholding.com&utm_medium=referral&utm_campaign=collaboration_ann" target="_blank">algo trading functionality</a>**. It allows users to automatically run proven trading strategies without the need to know or use code. The app offers three different bot trading strategies:

- **Infinity Trailing Bot**, which turns any market trend into a profit by automatically juggling trailing stop orders to capture strong up or down market movements.
- **Grid Bot**, which is most effective in a flat market and helps to profit from price volatility within a range.
- **DCA Bot**, which works in any trend market and allows you to accumulate assets over a long period of time.

Each bot is designed to profit in different market conditions and can help you grow your crypto portfolio, reduce trading stress and take advantage of price changes in any market cycle.

## [What is Resonance?](#what-is-resonance)

Resonance is an analytical platform renowned among traders for its advanced set of volume analysis tools. Resonance tools are suitable for both day traders, medium-term traders, and portfolio investors.\
\
The platform offers traders:
- Automated volume search
- Automated limit order search
- Trade aggregation for all currencies
- Free cluster chart
- Unique crypto indexes similar to the S&P500
- Ten advanced search engines

No less cool – Resonance has created its own <a href="https://resonanceholding.com/edu" target="_blank">University</a> with free access to 37 interactive lessons on trading and financial market analysis. Students will learn how to find liquidity and assess risk and objective demand for an asset. And hands-on exercises based on real market examples will help you create or update your trading strategy.

![Resonance_GoodCrypto_Partnership](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Resonance_GoodCrypto_mail/public)

## [Bonus from GoodCrypto](#bonus)

The partnership between Resonance and GoodCrypto is a great opportunity for traders to improve their performance. GoodCrypto offers you an **exclusive 30% discount on an annual PRO subscription when you sign up** via the web application using the promo code: **<span style='color:#017dfb'>RESONANCE30</span>**.\
\
**Terms:**
1. Go to the GoodCrypto <a href="https://click.goodcrypto.app/b9EC/8b9e3iny" target="_blank">web app</a>.
2. Subscribe for an annual PRO package using the promo code: **RESONANCE30**. 
3. Enjoy your trading with the most sophisticated tools and features through the web app, iOS, and Android.

The discount also applies to the Algo 2x add-on if it was added to the subscription during the purchase with the applied promo code.\
\
The clock is ticking, and the offer will expire on December 31, 2023. Don’t miss this fantastic opportunity to access GoodCrypto's PRO functionality at the best price possible.\
\
**! Important notes:**

**1. The discount is valid for subscriptions made through the web app only.**
2. The deal is available for the first 100 users who use the promo code or until December 31, 2023.
**3. The offer applies only to new GoodCrypto users.**
4. The discount will be lost if you subscribe, then cancel the subscription, and subsequently subscribe again. Do not cancel your subscription as you will lose the discount.

Please register <a href="https://click.goodcrypto.app/b9EC/8b9e3iny" target="_blank">via the link</a> and improve your crypto trading experience with GoodCrypto.

### [Summary](#summary)

With this partnership, we hope to provide you with the best opportunities to analyze the market and execute trades. Volume analysis will help you make educated decisions and avoid mistakes in the trading process while trading on a modern technological terminal will help you better manage risks and improve your trading strategy. Good luck!

Meet the official partner of Resonance – GoodCrypto's crypto trading app. Find your bonus in the article.

Opportunities for traders with Good Crypto – official partner of Resonance

FTT is so useful in the market that a trader might call it a Holy Grail. But remember, a hammer is perfect for hammering nails and it's completely useless for tightening nuts. That's why we recommend that you explore the tool and understand its usefulness so that you can use the FTT for its intended purpose.

## [The nature and settings of FTT](#ftt)

The FTT (short for Full Tail Turn) is a tool for quickly finding reversal accumulations throughout the market.\
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A reversal accumulation (or reversal formation) is an accumulation at an extremum (at the bottom or top of a bar). The extremum is the maximum. If the price has been rising, the extremum is at the top; if it has been falling, it is at the bottom.\
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The tool consists of a table with settings, the accumulation zones on the cluster chart, and the chart of the FTT Index.\
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The table of accumulations found for the assets is updated every 5 minutes.\
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In the table settings you can add or hide columns to be displayed in the table:
- Exchange
- Unified ticker
- Direction (where accumulation was found: bottom or top)
- Data type
- Timeframes
- Index group
- 24h volume (in BTC)

The data in the table can be filtered using the Filter button. There are “From” and “To” filters for the numerical values.

![FTT_window_structure](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/FTT_Window_Structure_en/public)

To view **the accumulation zones** in the cluster chart, click on the Unified ticker button in the table. The cluster chart will show lines highlighting the bars where the accumulation has been detected. If the bar is red, the accumulation has been detected at the top of the bar; if the bar is green, the accumulation has been detected at the bottom of the bar.

> Important! >The algorithm is not only interested in the accumulation, but also in the accumulation after which the participants were not able to push the price far.

## [FTT Index](#ftt-index)

The FTT index is a supplement to the FTT tool, which shows aggregated data for the entire market. It is presented as a histogram chart.\
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A red histogram indicates that there is a lot of accumulation at the top of the bars. It may indicate pressure from the sell limits.\
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The green histogram indicates that there is a lot of accumulation at the bottom of the entire market. Many assets are holding the price from the bottom, suggesting that buyers are active.

![FTT_index_en](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/FTT_index_en/public)
 
## [Using the tool](#how-to-use)

Let's analyze the example of the application of the tool. On the chart below, you can see that FTT has shown three times that there is an accumulation of orders at the top of the cluster bars and that the price cannot go further. As a result, the price dropped.

![FTT_price_decrease](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/FTT_price_decrease/public)

Below is an example of the reverse situation where the FTT shows an accumulation of orders on the bottom. This is followed by a rise in the asset.

![FTT_price_increase](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/FTT_price_increase/public)

>When the overall market is rising or falling, the FTT becomes a powerful tool for identifying ideas for long or short positions.

## [How to use FTT in Screener](#ftt-screener)

In order to quickly and efficiently evaluate the ideas from the FTT, we suggest using the FTT in the Screener. To use it, go to the tab Platform – Screener – FTT.

![ftt-screener](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/ftt-screener-en/public)

Let's talk about the settings:

- Indexes – selection of a group of tickers by which the search will be done
- Exchanges – selection of one or more exchanges for analysis
- Ticker – any ticker or pair
- Volume from – the value from which the search will be done
- Volume to – the value to which the search will be done
- Price change from – price change in % for 24 hours, from which the search will be done 
- Price change before – price change in % for 24 hours, before which the search will be
- Direction – shows in which part of the bar there is an accumulation of volume
- TF – timeframe, where an accumulation of volume is
- Sorting from A to Z – sorting assets alphabetically

Let's look at examples of search results. Parameters: Binance and Bybit exchanges, timeframe –1 hour, direction – accumulations at the top.

![search-example-ru](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/search-example-ru/public)

The accumulation at the top of the ACH asset is immediately noticeable. If there are sales on the market, such an asset can be considered for trade.\
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One more example. Parameters: ALT/STB index, OKEX, and Huobi exchanges, timeframe – 15 minutes, direction – accumulations at the bottom.

![search-example-2-ru](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/search-example-2-ru/public)

In this case, the LUNC/USDT asset stands out very firmly. These coins are best for selecting in the growing market, and the more accumulation of volumes at the bottom – the better.\
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Thanks to the FTT in Screener, you can quickly and efficiently select long and short assets for the middle term and intraday.\
\
You can learn more in the second level of our <a href="https://resonanceholding.com/edu" target="_blank">online university</a> or you can use our <a href="https://resonanceholding.com/account/prices?tab=mentorship" target="_blank">mentoring service</a> and have the FTT tool explained to you individually by our trusted author Resonance.

FTT is so useful for working in the market that at some point a trader may call it the grail. We recommend that you study the tool and understand its usefulness in order to use the FTT for its intended purpose.

FTT – a tool for finding reversal accumulations

## [What is volatility in simple words](#volatility)

>Volatility is the distance an asset moves in a certain timeframe.

Currency volatility is when the price has broken out of a flat movement and is moving in one direction or the other. Volatility can be a specific bar or a selection of several bars.\
\
High market volatility is not necessarily associated with high volume. Sometimes, on the contrary, a decrease in liquidity in the order book can cause a strong volatile movement even on low volumes.

### [An example of the volatility of cryptocurrencies](#example)

![Volatility-example](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Volatility-example/public)

Let's take a look at the last bar and try to assess whether it is volatile or not. You don't need a ruler to calculate the length of each bar in mm.
Even visually, you can see that the price movement in the last bar differs from the previous ones by a factor of 2 in 2 weeks.\
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This is accompanied by a sharp increase in volume, which tells us that this instrument has become of interest to a large number of participants.\
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The volume is concentrated in the upper part of the bar, and the selling is predominant It is risky to go long because even if you hide the stop behind this volume candlestick, the distance to it turns out to be quite large (more than 10%).

> The volatility analysis allows you to assess whether an entry is justified, the optimal distance to the stop, and to estimate the possible targets. 

For beginners, we do not recommend opening a trade during high market volatility. Especially in the lower timeframes, because abrupt and sudden price movements are ALWAYS followed by rash actions by a large number of participants. When trading in high volatility level, it is more difficult to find the ideal entry point and stop distance. A short stop can easily be knocked out, while a long stop may not be appropriate due to a poor <a href="https://resonanceholding.com/dictionary?id=riskReward" target="_blank">risk/reward</a> ratio.

## [Recommendations for using volatility in your trading](#advice)

![volatility-reccomendations](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Volatility-reccomendations-en/public)

### [1. Evaluate different timeframes](#timeframe)

When considering a market idea, you should evaluate not only your working timeframe but also the neighboring timeframes. Where volatility may seem high to you in a 5-minute timeframe, it may be almost imperceptible in a 4-hour timeframe.

### [2. Consider sideways movement](#side-move)

In the case of a volatile exit from a prolonged sideways movement, consider how the price behaved in that sideways movement. If it was already rising before the volatility cluster appeared, it means that the buyers have already made an effort to push the strength. Will they still have enough motivation to continue to do so?

### [3. Evaluate the correlation](#correlation)

Evaluate how the anomaly found correlates with other assets. When considering whether or not to open a trade when a volume volatility cluster appears, it is worth looking at other assets. If the situation is similar in most of the assets included in the top volume it may be a good factor to open a trade.

### [4. The ability to wait out of the market](#out-of-market)

On the one hand high volatility in trading after the release of news or economic indicators is an opportunity to buy an asset at a lower price. Or to open a short at a higher price. However, given the imbalance in the stack when the volatility index fluctuates, it is almost impossible to predict further price movements at such times. Therefore, on important news release dates it makes sense to wait out the market or tighten stops on open trades.

### [5. Calculate entry and stop points](#take-stop)

Remember that scalping with volatility indicators on one-minute timeframes requires a fast reaction and almost perfectly calibrated entry and stop points. This, in my opinion, cannot be taught. It is something that only comes with practice and experience. And it's not even about opening a position at the right time and quickly calculating the risks. Above all, you have to be mentally prepared for trading in high volatility, when the situation can turn upside down in a matter of seconds. Also, keep in mind that during sudden changes in the market, the price may be executed far away from your stop order.

### [6. Lock in profits](#lock-in-profit)

In a volatile instrument, potential profits can quickly turn into losses. Therefore, you should consider locking in at least some of your profits if the price has moved a significant distance from the entry point.

## [Conclusion](#conclusion)

Volatile assets will always attract traders with the possibility of higher profits. But not everyone can get used to such rapid price changes especially when it goes in a completely different direction. Even when it happens, you shouldn't change tactics on the fly. ANY decisions you make should be based on facts and analysis, not emotion and panic.\
\
If you are not sure which side is winning, sitting on the sidelines is a good decision. Periods of volatility don't last forever and you may feel more comfortable analyzing and trading in a calmer market.

In the article, we analyze the concept of volatility analysis and its use in trading. Volatility allows you to evaluate how justified the entry is, the optimal distance to the stop, and also estimate possible targets.

Market volatility: how to take advantage of it

In this article, we will talk about what is margin trading, which is a very common type of trading.\
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Sure, this instrument has slightly lost its importance and popularity due to the introduction of futures. Nonetheless, margin trading remains popular among regular traders and professional market participants alike.\
\
To begin, let us define what is margin.

>Margin is an amount of funds in a trader’s account balance, used as collateral to open a position.

## [Specifics of margin trading](#specifics)

In spot trading, you can buy an asset and hold it for however long. No holding fee is charged. On the other hand, in trading on margin, you borrow assets (e.g., stablecoin or a certain amount of coins) from the exchange. Naturally, the exchange is interested in receiving a fee for the loan. Not that exchanges are greedy or something. They just have to, say, pay interest to those who put their coins in staking. And to be able to pay something, they have to earn something. Now, let us get back on track.\
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The difference between spot and margin trading is more or less obvious. But what about futures trading? At first glance, they hardly differ at all. In both cases, it is common to trade with leverage in both directions. Except, perhaps, the margin leverage for futures is usually higher. Yet, that is not the main difference. Whichever way you look at them, futures are derivative instruments; even if they affect spot prices, their influence is always indirect.

>Meanwhile, in margin trading the influence is as direct as it gets!

For margin traders, there are no separate order books, charts, and volumes. Their orders are in the same book as spot traders’ orders. This means that their stops and takes directly affect the price.

## [Features of margin trading](features)

1. Fee charging interval. For instance, on Binance, margin traders are charged a loan fee hourly, while in the case of futures, the time is usually 8 hours. Moreover, the fee mechanism for futures (called funding) just works differently. While in the trading margin, a loan fee is always charged to the trader, futures traders can actually get paid in case of a position imbalance.
2. The amounts of fees can also substantially differ. They constantly change depending on market events. More about these, as well as about the loan limits, can be learned at the websites of exchanges. Note that even in the case of a good movement in your direction, long-term retention of a position (i.e., over the course of a few months) can sometimes greatly affect your final profit due to the fees charged. 

Just as with futures, there are two types of margin in margin accounts:
1) Cross-margin, also known as spread margin, is a type where the entire margin account acts as collateral. This means that assets that can be used as collateral are not confined to USDT, but instead include every kind of asset held in the account (BTC, ETH, BUSD, etc.)
2) An isolated margin means that you have a separate mini-account for each coin you trade. This option limits the risk to assets within a single trading pair.

### [Benefits of margin trading](#benefits)

- The leverage allows you to enter trades for amounts greater than you would otherwise be willing to.

>Leverage is capital borrowed from the exchange in order to open trades for larger amounts and increase the potential profit.

- You can trade with the ALT/BTC pair leverage, both long and short. This can benefit those who intentionally accumulate BTC and seek to increase its amount.
- You can open short or long leveraged positions without having to actually sell the asset (e.g. when using BTC or ETH that you have in your portfolio as collateral for the loan). This only applies to cross-margin.

![margin-trading-advantages-en](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/margin-trading-advantages-en/public)

### [Drawbacks of margin trading](#drawbacks)

- Those who fail to observe trading discipline and increase their potential losses risk facing a margin call or, even worse, liquidation of a position (for isolated margin) or of an entire margin account (for cross-margin). Always remember that nobody is immune to mishaps and never put more than 1% of your total capital on the risk for any single margin trade.
- With isolated margin, trading can sometimes get very tiresome: you have to invest in a chosen pair, get a loan, open a trade, close it, and then calculate the amount to be paid back, including fees. All these operations are time-consuming and can be quite challenging to do from your phone.
- In some cases, loan fees for long-term retention of positions on a margin account can significantly exceed those charged for similar futures positions.

## [Leveraged tokens](#leveraged-tokens)

This innovative instrument has to do with margin trading, so we cannot leave it aside.\
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Leveraged tokens are a type of spot-traded assets that allow you to gain leverage exposure without having to provide collateral and deal with a loan account.\
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Looking at leveraged token charts in PTT (in the pair tree, they are shown in the ETF/STB group), you could have observed that such assets are often subject to huge pricing anomalies. Nonetheless, you should not think that purchase of a token for 5-10 BTC can cause a U-turn in the price of BTC in all pairs and exchanges.

![cluster-chart-bybit](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/cluster-chart-bybit/public)

>Did you know that on Binance, the underlying asset for leveraged tokens is a futures pair, rather than a spot pair?

This means that what we can see above is a chart for a derivative, and its underlying asset is another derivative calculated based on a spot price.\
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For this reason, basing your analysis on leveraged token charts it just as wrong as basing it on futures charts and the volumes shown in them.

## [Conclusion](#conclusion)

Margin trading has its benefits and drawbacks. This type of trading is definitely not advisable for beginners who cannot properly assess their risks. Even though in this case the leverage is smaller compared with that in futures trading, the strong volatile movement against your direction puts you at the risk of losing the entire margin deposit. Thus, any potential loss must be limited with stops.\
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Always remember the basic rule of margin trading:\
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**Leverage in trading is not used to increase gains; it allows you to decrease the amount of your own funds involved in a trade!**

With the advent of futures, the popularity of margin trading has somewhat declined. However, this type of trading still remains interesting for both casual and professional traders.

Margin Trading: risks and benefits 

Volumes are an essential part of market analysis. It is very good if you can analyze the volume of one exchange, but it is even better if you can look at data from all exchanges. To do this, we have created a Market Stat tool that allows you to see aggregated volumes, delta, market balance and assess liquidity.

## [Description and use of the tool](#description)

The Market Stat tool consists of three blocks:
1. Delta and average balance
2. Comparison of volumes
3. Volume and average balance

The indicators in each block are aggregated. Their values include data from many exchanges. The following types of data are visualized:
- Volume – the amount of buying and selling for the selected timeframe, in BTC.
- Delta – the difference between buying and selling, in BTC.
- Balance – the ratio between buying and selling, in %.

The following index groups are available for analysis: 
- BTC/STB
- BTC/FIAT
- BTC/MONEY
- ALT/MONEY
- ALT/STB
- ALT/FIAT
- ALT/BTC
- ALT/ALT
- STB/STB
- STB/FIAT
- FIAT/FIAT

Now let's take a closer look at what useful information we can get from each block. 

### [Delta and average balance](#delta-balance)

These charts are used to assess the overall market picture. The average balance shows which asset group is currently in demand among active participants. The balance can be used to determine the capital flow from group to group. The delta shows in more detail the size of the overshoot and the direction of the capital flow.\
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The indicator is calculated in % of the index groups based on the balance between buys and sales.
-	If the blue line rises, market buying predominates, if it falls, market selling predominates.
-	If the histogram bar is red, there are more market sales than buys. If the bar is green, there are more market buys than sales.
-	The cumulative delta shows the delta data accumulated over the maximum visible range.

Market Stat charts have a scale with left and right markings. Marking to the left shows the histogram values and the marking to the right shows the average balance values.

![delta-and-average-balance](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/delta-and-average-balance-en/public)

### [Comparison of volumes](#volume-comparison)

This block helps you visually determine the level of interest in a particular group in comparison. The multiline chart and pie chart show the total volume of all asset groups.\
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All the same, indexes are available for analysis, as well as data types by volume and quantity.

 ![comparison-of-volumes](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/comparison-of-volumes-en/public)

### [Volume and average balance](#volume-balance)

This block helps you visually determine the level of interest in a particular group in comparison.\
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The chart visualizes the total volume of transactions. The line chart (blue line) shows the average balance. The scale marking to the left shows the volume values, and the marking to the right shows the average balance values. 

![volume-and-average-balance](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/volume-and-average-balance-en/public)

## [How to use Market Stat in trading](#how-to-use)

The chart shows the Delta and the average balance:
1. There were large sales during the night, followed by no significant buys during the day, but there were clearly large sales.
2. On the morning of the 21st, the delta of both buying and selling fell sharply.

![market-star-areas](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/market-star-areas/public)

The fact that selling clearly dominates buying suggests that selling will continue.\
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Let's look for arguments in the cluster chart as well. As we can see, the main Binance exchange is experiencing heavy overnight selling. That's two arguments in favor of continuing the decline. Let's see the result.

![cluster-chart-areas](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/cluster-chart-areas/public)

The decline was more than 3% in a short period.

 ![cluster-chart-result](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/cluster-chart-result/public)

And also look at the block of Comparison of volumes and how the volume dynamics have changed.

1.	Before entering the trade, volumes, and volatility were very low. 
2.	When the move started, volatility and volumes started to increase.

This again suggests that you should always enter when volatility is low and exit when volatility is high. 

![market-stat-volumes](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/market-stat-volumes/public)

If you have aggregated data, you can quickly assess the current market situation. This is exactly what the Market Stat helps us with! You can learn more about how to use the tool in the 13th lesson of <a href="https://resonanceholding.com/edu/mycourse" target="_blank">the second level of training</a>.

For the successful work of a trader, it is necessary to evaluate volumes. We have created a Market Stat tool that aggregates data from all exchanges and visualizes volumes, delta, and market balance to assess liquidity.

Market Stat for estimating market volumes

The basic functions of any trading platform include: selling and buying cryptocurrencies, depositing and withdrawing funds, as well as storing finances on the account. But professional and quality crypto exchanges also offer additional features, such as analytical tools, portfolio management, and others. Together they improve the interaction between the trader and the market.

## [A short checklist on choosing a platform](#short-checklist)

**1. Determine your needs.**

First, define what you expect from the trading platform. Would you rather work in an application on your computer or have access to the web? What is your trading style and what are your goals? Do you only want cryptocurrency trading tools or would you like them for analysis as well?

**2. Explore existing platforms.**

Make research among the top cryptocurrency exchanges. Study the functionality, trading conditions, commissions, and security of each platform.

**3. Assess the reputation.**

Study user reviews and exchange reviews to get a general idea of the quality of services.

**4. Check safety.**

Make sure the platform uses two-factor authentication and other security measures to protect your account.

**5. Make sure you have support.**

Make sure that the crypto exchange provides proper support to its users. Pay attention to the communication methods with technical support, response time, and quality of service.

**6. Test the platform.**

Before choosing a platform, try it out for yourself. Open a demo account and try trading through the platform. Remember to evaluate its functionality and usability.

**7. Make a choice.**

After doing some research and testing the platform, make the choice that is most appropriate for your needs.

![Checklist-on-choosing-a-trading-platform](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Checklist-on-choosing-a-trading-platform-en/public)

## [How can you check the reputation of a platform](#check-reputation)

Checking the reputation of online exchanges is an important step in choosing one. Here are some tips to help you:

- Explore the platform: Explore the platform site and its functionality. Review the terms of use, privacy policy, and other relevant documents.
- Make sure the platform is properly licensed and regulated by the appropriate organizations.
- Study the reviews of users who have already used the platform. Search for reviews on independent resources such as forums, blogs, and social networks. Be careful with the reviews on the platform's website, as they might be biased.
- Check the historical background of the platform, including its creation period, management, and investors. Find out if the platform has had problems in the past, such as data leaks or security breaches.
- Examine how the platform ensures the security of its users, including the protection of personal data. Make sure the platform uses state-of-the-art encryption and multi-factor authentication.
- Contact support and ask them questions about their work, services, and safety. Pay attention to the speed and quality of answers, as well as the professionalism and friendliness of the support staff.

![How-can-you-check-the-reputation-of-a-platform](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/How-can-you-check-the-reputation-of-a-platform-en/public)

In general, one of the most important steps when choosing a trading platform is to check the reputation of the platform, since you entrust it with your assets.

## [What are the functions you should pay attention to](#what-pay-attention-to)

A cryptocurrency trading platform can help you access the cryptocurrency market and analyze particular assets in real time. Here are a few aspects to focus on when choosing a platform:

### [Access to a variety of cryptocurrencies](#access)

The majority of cryptocurrency trading platforms offer access to a variety of cryptocurrencies, including the most popular ones such as Bitcoin, Ethereum, and Litecoin, as well as lesser-known altcoins. All these platforms provide information about cryptocurrency rates as well as historical data on them. Pay attention to the availability of liquid assets.

### [Tools for analyzing cryptocurrencies](#tools)

There are many platforms offering different analysis tools that can help you make trading decisions based on the analysis of certain data, depending on the functionality of the tools on the platform. Take a look at the contents of the article [‘’What is wrong with technical analysis?’’](https://resonanceholding.com/ru/blog/trading/low-technical-analysis-efficiency). Your task is not to look for a grail but to find instruments allowing you to analyze objectively. Resonance provides a set of 10 such tools. You can a href="https://resonanceholding.com/rtt" target="_blank">read more about them here</a>.

### [Risk management systems](#risk-management)

Most platforms offer risk management systems, such as stop loss and take profit, all of which have the potential to help you with protecting your capital.

### [Traders community](#community)

An active online community of traders who discuss crypto, and their trading ideas and share their experiences can help you improve your skills and knowledge of cryptocurrencies and trading in general.\
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Summarizing, cryptocurrency trading platforms will help you access the cryptocurrency market and trade in real-time, as well as provide tools and features that can help you make informed trading decisions and protect your capital.

## [The role of a community platform](#community-role)

The community plays an essential role in the development and success of cryptocurrency exchanges. The community is a group of people who actively use the platform, exchange experience, information, and ideas, and also provide input into the development of the exchange.\
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How exactly can a community be useful?

- Feedback from users to help it improve its services and functionality. The community can report any problems, shortcomings, or ideas.
- The community can help the platform evolve by contributing to the development of new features and tools. In addition, it can offer some new ideas, help test new features, and give feedback regarding its performance.
- Support: the community can help other users of the platform by answering their questions, and sharing experience and advice. This helps create a friendly and supportive atmosphere on the platform, with the potential to attract new users.
- Advertising and attracting new users by talking about your experience using the platform and recommending it to others. This can be one of the most efficient methods of promotion because recommendations from satisfied users are considered to be those of the most reliable.

## [Conclusion](#conclusion)

There are many crucial factors you should focus on when choosing a platform: functionality, community, and support. After researching and testing the platform, make your choice according to the parameters that are most suitable for your needs.

In the article, you will learn what aspects to consider when choosing a trading platform, what to look for and how to be sure of the reliability of the platform for work.

What is the best way to choose a platform for trading cryptocurrencies

The history of technical analysis dates back to the 19th century. It was first mentioned by Charles Dow in an article in the Wall Street Journal. The development in the field of technical analysis of financial markets was the time of the Great Depression, when there were many researchers of price charts, such as Elliott, Gunn, Wyckoff and others. Some of them even wrote their own books, such as "Technical Analysis of the Future Markets: Theory and Practice" by John Murphy or Schwager "Technical Analysis". A new wave of popularization of this approach started with the advent of computers in the 70s, when the first indicators for trading and other mathematical methods of price analysis were invented.

## [What is technical analysis?](#what-is)

Technical analysis is a method of analyzing financial markets based on the use of price charts and mathematical formulas. TA does not involve fundamental analysis, since theoretically the price already takes into account all economic, financial and news factors.

>Technical analysis is used in online trading to predict future prices of stocks, currencies, commodities and other assets based only on the analysis of their past price action.

The TA is based on three postulates:
1. Price takes everything into account.
2. Price movements are subject to trends.
3. History repeats itself.

Let's go into a little more detail about each of them. 

## [The basic principles of technical analysis](#main-principles)

### [History repeats itself](#history-repeats)

Technical analysis is based on the assumption that past prices in the market repeat their movements in the future. Therefore, traders use data from the past to predict future changes. In the example below the price has repeatedly "pushed back" from the given price range, which, in turn, allows us to make an assumption that the same thing will happen next time.

![price-movements](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/price-movements-ta/public)

"Experts" of TA are sure that price fluctuations are not accidental and eventually become trends and formations (patterns, regularities).\
\
And here it is worth mentioning, the price indicators work! Sometimes 😉 Just like a broken clock that is right twice a day.\
\
For this reason, ironically, the price chart can actually give "signals" as well. And chart patterns work, too. This is called a self-fulfilling prophecy.

>Prediction that indirectly affects reality in a way that ends up being true. In other words: a prediction that appears to be true but is in fact not, can greatly influence people's behavior in such a way that their subsequent actions themselves lead to the fulfillment of the prediction.

So how is it expressed in TA? People notice that a certain indicator becomes oversold and decide to buy. The price goes up. They begin to believe even more in their theory and gain more volume because they think that the price will keep going up. As they buy, they keep pushing the price up until the indicator shows that it is overbought. Then people start to sell and the price goes down.

### [The price reflects everything](#price-reflects)

A popular theory you might have come across is the Dow Theory. It is the basis for TA, based on the writings of Charles Dow and his theory of market behavior. The main rule of Dow theory is that price takes into account EVERYTHING that happens in the market: past, current and expected events.\
\
There is no arguing; indeed, there is a lot put into the price, especially into the overall price of the whole market. However, there is always a but.\
\
Remember, the market is about three parameters:
1. Time
2. Price 
3. Volume

And the price is the consequence of a conventional battle of volumes. Price is meaningful when there is supply and demand. Price is also meaningful when you have enough volume to think about the price difference. But the primary thing that matters is **the volume of supply and demand**. Because if there is none, it does not matter what the last price in the market is. All the same, the volume cannot be realized.

### [The trend has a tendency to continue](#trend)

Technical analysis of markets is based on the assumption that the trend will continue. According to this principle, crypto traders try to enter the market if they see a certain trend: upward or downward due to price changes. 

![trends_en](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/trends_en/public)

But the reality is that trends exist only in history, only as a trace of former imbalances:

- With a strong preponderance of buyers pushing the price upward, we can see traces in the form of an upward price trend.
- If buyers and sellers are on an equal footing, the price fluctuates at the same level.
- A strong preponderance of sellers pushing the price down forms a downward price trend.

Therefore, it is more correct to say that your friend is not a trend, but an imbalance. And the trend is the shadow of your friend. Using trend indicators that follow the shadow of the friend is a little strange, admit it. 

### [Using graphs](#using-graphs)

In technical analysis, online traders mainly use price charts to analyze the market. The trader searches for different formations on these charts: trends, patterns, support and resistance levels, reversal patterns, etc.

![charts-using](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/charts-using/public)

Why do trader's price movements become similar to some geometric figures? Why does the trader fit the chart into geometric shapes?\
\
This is apophenia!

>Apophenia is an experience consisting of the ability to see structure or connections in random or meaningless data. The term was introduced in 1958 by the German neurologist and psychiatrist Klaus Conrad, who defined it as an "unmotivated vision of connections" accompanied by a "characteristic sense of inadequate importance.

Read more about this definition in <a href="https://resonanceholding.com/edu/mycourse" target="_blank">Lesson 3 of the course</a>, and think about what you see on the graphs :)

### [Using the indicators](#using-indicators)

There are many different indicators in TA and even more variations: moving averages, indices, oscillators, and others. They are used to confirm the trend direction and determine entry and exit points for trades.

![indicators-using](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/indicators-using/public)

## [Conclusion](#conclusion)

What could be easier than setting up a couple of indicators and working on the trend? At each price approach the trend line to open and close transactions according to the signals of the indicators, close after a few percent and repeat until the trend is over, or trade beautiful figures from textbooks on technical analysis.\
\
In fact, everything described above refers only to trading in probabilities. Knowing only the price, it is impossible to conclude about supply and demand. Trend lines are just fantasies, just like patterns and TA figures. Indicators are based on the price history, they will always be late and do not give the necessary information to the trader.\
\
It is "good" to explain the past with the help of technical analysis, but it is of no use. Most people do exactly "drawing" because TA is very common and people think that having learned all the figures and having adjusted the indicators they will earn. But only a few are eager to understand supply and demand, the only law that works in the market.\
\
Learn more about why technical analysis does not work and how to learn to analyze the market with the help of objective volume analysis in the 3rd lesson of the intermediate level.

Let's analyze the basics of technical analysis to understand whether it is really so effective in trading?

The basics of technical analysis

If there was a way for newcomers to the stock or crypto market to take a survey and ask a single question, I would ask this:

>"What should I do to close a trade successfully?"

I am convinced that the vast majority would answer that in order to have a positive result in a trade you need to choose a good trade entry and exit point.\
\
The so-called "near-marketers” have always known this and tried to use it to their advantage. Technical analysis only described patterns and levels but did not always give answers to the question of when to open the trade, how to accompany it, when to close it, and how to manage the portfolio. As a result, new indicators were invented all the time, and, of course, those that showed entry and exit points directly on the chart were particularly popular with beginners. By the way, I've already told you why indicators don't work in my article ["Use of charts and Indicators in trading"](https://resonanceholding.com/ru/blog/trading/charts-and-indicators).

## [Why is the entry and exit point not so important?](#what-important)

Opening trades based on indicator data or trader signals from VIP channels makes you a one-track mind. Your only responsibility comes down to only pressing two buttons: BUY and SELL.\
\
And if trading were that simple, we'd all be sailing our own yachts on warm seas, sipping expensive champagne. But the reality, and more importantly the statistics of beginners' success is inexorable:

>Most beginners lose more than they make in the exchange.

### [Important factors in trading](#significant-factors)

In addition to entry and exit points, the following factors are much more important for a trader:
- Risk management (more details in the article ["Risk management in trading: how to protect your finances"](https://resonanceholding.com/ru/blog/trading/risk-management))
- Choosing a comfortable timeframe for trading
- Context or background assessment: an analysis of what happened to the price before it approached the intended entry point; is there really an imbalance between supply and demand?
- Emotional stability. If you cannot explain your actions in terms of supply and demand, it means that they were made under the influence of emotions and unsupported expectations.

![valuable-factors-en](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/valuable-factors-en/public)
 
Based on these factors, the main key to a successful trading strategy is to have the right mindset. More specifically, to have the answers to the following questions:
1.	How much can I afford to lose in a trade?
2.	Won't something distract me from trading in my chosen timeframe?
3.	Have I gathered enough information, are all the conditions within my strategy for opening a trade met?
4.	Am I able to follow the rules of my trading strategy with discipline?

## [How can Resonance help beginners develop their trading strategies?](#how-resonance-helps)

There are several different tools on the Resonance platform that allow new traders to get a deeper insight into what's going on in the market. Besides, they are constantly being improved and new tools are being developed all the time.\
\
You can find out more about them and read a detailed description in the <a href="https://resonanceholding.com/blog/tools" target="_blank">"Tool section"</a>.\
\
What these tools have in common is that they each contain some actual values, and numbers that can be twisted, compared, and contrasted in various ways. They cannot tell us with 100% probability where the price is going. But we try to squeeze as much information as we can out of the data that exchanges can provide to ordinary participants.\
\
But it is also a mistake to focus only on the actual values (e.g. Market Stat and Market Delta values). The same figures can be interpreted differently if the price behaviour is different or if volumes are increasing or decreasing.\
\
So, our goal as a community is not only to give beginners some trading strategies, but also to teach them how to build a logical chain. After all, sometimes the market situation changes very quickly. Sometimes iron-clad arguments, for example to go long, can be met with the strongest counteraction 15-30 minutes after opening a position, causing the trade to be closed completely or even to turn in the reverse direction. Without the ability to adapt, without understanding when to raise a stop or fix part of the profit, you will always take a loss that could have been avoided.

### [Tips for beginners](#advice-for-new-traders)

![tips-for-beginners](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Tips-for-beginners-ph/public)
 
- ***Be sure to complete <a href="https://resonanceholding.com/edu" target="_blank"> the course</a>***. The Basic and Middle levels are currently available.
- ***Follow the posts of our trusted authors***. Try to absorb what they see and describe. What tools they use. Feel free to ask questions in our chats if something is not clear.
- ***Create your own private channel on Telegram***. For your personal use. Send there your findings that seem interesting and try to describe in detail what is happening in terms of supply and demand. You will then be able to assess how accurate your way of thinking usually is and what trader’s style you relate to.
- ***Trade safely***. If you are a complete beginner, use capital that will not affect your family or personal budget in any way. Start trading with as little as possible. Do not risk more than 1% of your deposit on a single trade. Remember, if you don't have enough money, no strategy will allow you to multiply it in a short period of time. On the contrary, it will only add to the psychological pressure of fear of losing everything.

Beginners in trading need to learn the basic rules before starting to open trades. In the article, we give advice from professional traders.

Trading strategies for beginners 

## [Tool description and setup](#description)

Hippo is a search algorithm for large limit orders in the order book. Such orders are of great interest when they have enough volume for holding the price or for psychological intimidation.\
\
By the way, "large" is a subjective concept, so we are not looking for a "large" limit, but the one that is the largest relative to what usually happens on that asset.

>The challenge for Hippo is to identify not just a large limit, but an abnormal limit.

So how is it possible to find a larger-than-usual limit among hundreds or thousands of pairs? It is physically impossible for a human to do that because you cannot keep track of thousands of pairs and memorize the size of the limits at the same time. That is why we have created an algorithm that makes it possible since it has "all the moves written down".\
\
The tool consists of a table with assets and lines on a cluster chart indicating places with abnormal limits.\
\
In the picture below you can see the structure of the table.

![hippo_window_structure](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/hippo_window_structure/public)

In the settings, you can add or hide columns that will be displayed in the table:

- Exchange where the limit was detected 
- Uniform ticker
- Zone where the limit order appeared
- Distance in percents to the best price
- Price of the best Bid/Ask order
- Volume of the limit order in coins
- Time of data detection in the current line

The data in the table can be filtered through the Filter button. There are filters "From" and "To" for numerical indicators.\
\
When you click the Unif. ticker button in the table in the cluster chart window, the data for the selected pair will be displayed. The lines that appear symbolize limit orders. Red lines are Asks, and green lines are Bids.

## [Hippo using](#how-to-use)

Here's an example from our trading experience.\
\
In the cluster chart below, we can see how the price was moving in a narrow range, and after its slight decline, sellers began to place large limit sell orders. Afterward, the price continued a more active decline.
 
![hippo_ask_limit_orders](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/hippo_ask_limit_orders/public)

Now let's look at an example of using Hippo for long trades.

![hippo_bid_limits](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/hippo_bid_limits/public)

The green zones on the chart are not clusters, they are so close to the buy limits. By the way, in the [BAS](https://resonanceholding.com/ua/blog/tools/bas) search engine you can also notice it.\
\
This was followed by sharp market buying.
 
![hippo_price_growth](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/hippo_price_growth/public)

>Hippo can be used in any market. In case of active growth – we are looking for limit orders to buy, in case of decline – to sell.

You can find more information in the <a href="https://resonanceholding.com/edu" target="_blank">online university</a> or use our <a href="https://resonanceholding.com/account/prices?tab=mentorship" target="_blank">mentoring service</a> and better understand the Hippo search on your own with our trusted author Resonance.

How is it possible to find a larger-than-usual limit among hundreds or thousands of pairs? It is physically impossible for a human to do that. That is why we have created an algorithm that makes it possible since it has "all the moves written down".

Hippo: working with limit orders 

## [What is Speed Print useful for](#speed-print)

The mission of the Speed Print tool is to track the increase in the rate of market orders across all feeds and report who is now exceeding the averages. It monitors all pairs and reports the exceeding average number of orders.\
\
Tics or prints are deals. They end up in the feed. You can determine the participants' general interest in an asset by the speed of the ribbon. The Speed Print search tool counts the tape speed (number of ticks per minute) and displays these values in the form of a table.\
\
Now let's get acquainted with the description of the windows and the tool settings.

### [Table settings](#table-setting)

Speed Print consists of a table and a bar graph. You can see the structure of the window in the following picture.  

![speed-print-window-structure-en](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/speed-print-window-structure-en/public)

In the tool settings, you can add or hide columns to be displayed in the table:

- Exchange where the accumulation was found
- Unified ticker 
- Speed – number of deals in the last closed bar 
- Average speed – the average number of orders per minute within the average range
- The coefficient indicates how great the difference between the current number of deals per minute and the average number of orders per minute is
- Last quote price
- Time when the speed exceeding was detected

The data in the table can be filtered through the Filter button. There are filters "From" and "To" for numerical indicators.

### [Graph settings](#chart-setting)

Clicking on the Unified ticker name in the table additionally opens a graph. By default, the speed histogram will be opened.
 
![speed-histogram-speed-print-en](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/speed-histogram-speed-print-en/public)

The following histograms are available for change:
1.	Speed
2.	Average Speed
3.	Coefficient
4.	Average ratio

Alternatively, you can also see the delta chart by volume by clicking on the appropriate button in the chart header.

![delta-speed-print-en](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/delta-speed-print-en/public)

## [How to use the tool](#how-to-use)

Speed Print notifies us when an asset with an abnormal transaction rate is found. Let's see how to analyze this in real life.\
\
The cluster chart below shows sellers starting to shed volume and take apart the buyer limit (red histograms).\
\
At this time Speed Print shows a sharp increase in the number of overspeed transactions. This indicates abnormal activity appearing. 
 
![speed-print-example-1](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/спид-принт-пример-1/public)

There was a 1.5% drop after sellers broke the buy limit bid.\
\
Considering that Speed Print is a scalper tool, therefore, this percentage is a good result for a scalp.

![cluster-chart-growth](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/кластерныйграфик-рост/public)

>Speed Print can be used in any market because it shows whenever there is an abnormal activity for a coin, whether the market is rising or falling.

You can find more information in the second level of our <a href="https://resonanceholding.com/edu" target="_blank">online university</a> or take advantage of our <a href="https://resonanceholding.com/account/prices?tab=mentorship" target="_blank">mentoring service</a>and better understand the Speed Print tool on your own with our trusted author Resonance.

The task of the Speed Print tool is to track the increase in the speed of market orders across all tapes and report who is currently above average. It monitors all pairs and reports when the average value of the number of orders is exceeded.

Speed Print – a tool for finding speed limits

I'm sure you've often heard that trading is a pretty aggressive environment, where few can make consistent profits. It's hard to argue with that. And to get on the same level as successful traders, all you need to do is learn their trading strategy. As a rule, the key to success is not only to follow the trading rules unconditionally but also to use some special techniques of successful traders that will help you manage your emotions, follow discipline in trading and avoid unexpected losses.\
\
Trading is not about finding a good entry and exit point. Success comes from the way we think, the level of emotional intelligence we possess, and how seriously we take money management.

> Do you trade for business or just for fun?

After watching many interviews with famous traders and reading many articles, I decided to make a small TOP 10 list of tricks (or tips) of successful traders that should help you change your mindset. Whatever your trading strategy, these rules will work the same way.

## [TOP 10 Tips](#top-advice)

### [1. Trading at a loss is never a loss](#breakeven-trading)

The biggest fear of beginners is making a loss. This fear prevents us from placing stops in the hope that the price will turn around and go where we want it to go. Beginners do not understand that a series of losing trades closed with stop losses can be compensated by a successful trade with a good [risk/reward](https://resonanceholding.com/dictionary?id=riskReward) ratio within the framework of risk management. For some people 5 stops in a row is a disaster, for others, it's just an experience. It all depends on your perception of loss. Try to treat losses as something unavoidable, but at the same time so that they do not become a psychological burden.

### [2. Control your emotions](#emotions)

Before every trade, ask yourself: does it follow your rules for entering the financial market? It is better to skip the trade if:

- The arguments are weak or "far-fetched".
- The entry conditions have not been tested over a long distance.
- The entry conditions meet the criteria, but the entry point has already been missed.

### [3. Reduce risk when you hit an unfavorable market phase](#reduce-risk)

I think that more than once, after a series of losing trades, you have found yourself thinking that such a losing streak cannot last forever and that you can therefore enter with a larger amount of money than usual and thus make up for all your previous losses in one trade. But the problem is that the principles of planning do not work here, and none of the trades has anything to do with the previous one. And a series of 5 bad trades can just as easily turn into a series of 10 or more. But the losses from overestimating risk will be much greater.\
\
So, paradoxically, when the market is going badly, you should reduce the number of trades and the size of your position. Ideally, it is better not to trade at all and wait for the market situation to become clear to you.

>If you don't know what to do - do nothing!

### [4. Trading should not be your only source of income](#income)

This rule follows from the previous point. If you have solid capital and even a small profit of around 5%-10% per month, you can live comfortably. But what if you have lost money for 3 months in a row? You will either have to cut your expenses significantly or "pinch" your capital.\
\
Ideally, the most favorable conditions for trading are closed life needs, and stable additional sources of income (investments, business, or hired employment). Personally, I have admired the revelations of some traders who traded and had accounts of hundreds of thousands of dollars, but kept their jobs, even if their salary was modest.

### [5. Use your brain](#think)

Do not stupidly try to repeat trades after someone else. For the creator of the signal, the amount of the trade may be small, but for you, this risk will cause the strongest emotions, which in the end may have a negative impact on your decisions. I explained how to deal with the risks earlier in this article ["Risk Management in Trading: How to Protect Your Finances"](https://resonanceholding.com/blog/trading/risk-management).

### [6. The news is already history](#news)

Public news becomes obsolete the second it is published. News that everyone knows will not give you a personal advantage. Traders who know the news in advance have already analyzed it and taken a position. And it is quite possible that there is already a "giveaway" to the happy crowd as volatility increases. So, avoid trading based on the news. And remember that market analysis may not work well in times of high volatility.

![volatility](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/volatility/public)

### [7. Scalping is profitable but difficult!](#scalping)

No matter how mentally tough a person is, it's hard to stay focused on something day in and day out. Add to this the "emotional swings" that a scalper is exposed to due to the ever-changing situation in the financial markets, and it becomes clear that long-term trading at such a pace can seriously undermine one's health and even worsen relationships with close people.\
\
However, no one is saying that short-term trading is bad. You can trade 5-minute charts and even 1-minute charts. But you should try to organize your work so that you don't spend all your free time in front of the screen. In the article ["How to trade intraday. Scalping"](https://resonanceholding.com/blog/trading/scalping) you can find some tips and tools for intraday trading.

### [8. Strive to make the most of a profitable trade](#maximum)

Fight your greed. Overly high expectations can lead to significant losses. To avoid this, use partial limiting and move stop losses to breakeven or guaranteed profits. Of course, such decisions should not be based on intuition, but on market logic.

### [9. "When the ship is sinking, jump off first"](#jump-off)

If the price is rising with high volume and not going in your direction, it may be better not to wait for a full stop, but to exit earlier with a smaller loss. Of course, the price may turn around, but this tip can still save your finances in the long run.

### [10. One trade will not make you rich](#be-rich)

Sooner or later in a trader's career, there will come a time when an asset you have bought will go through the roof and make you ten times more money than you expected. But don't be under the illusion that this is the result of your analysis. You should treat it with the understanding that life is a series of coincidences, and this time luck is smiling on you. But this is no reason to change your strategy immediately, to overestimate the risks. It is just a nice bonus, a "premium" and nothing more.  

## [Conclusion](#conclusion)

When we look at experienced traders, we expect to find a secret that will allow us to make a stable profit from the market. But there are no such secrets, and there cannot be. Instead, there are basic principles that must be followed in order to, at a minimum, not lose your deposit and, at a maximum, gradually increase it.

The key to the success of a trader is not only unquestioning adherence to the rules of trading but also using some special techniques of successful traders that will help you manage your emotions, follow discipline in trading and avoid unexpected losses.

10 tricks of successful traders 

"How do you manage your risks?" - is a question that puzzles 9 out of 10 traders. Not so important is market analysis, not so important is strategy and tactics, and not so important is what is happening in the market. But the most important things are financial protection and risk management. The market is a fairly chaotic environment. It is chaotic because each of its participants does not know the motives of the others and the trading psychology that drive them to buy or sell. Therefore, even with a good trading strategy, you can end up with a series of losing trades.\
\
It is impossible to be right on every trade. There will always be losses and you should be prepared for this. Risk management and accepting potential losses are the solid foundation on which a trader's development begins. In this article, we deal with the basics of risk management and give practical advice on how to manage risks.

## [The basic rules of money management](#basic-rules)

In trading, risk management boils down to simple rules:

1. Develop a plan to limit losses in the event of an unfavorable outcome by placing stop orders (market stop losses, stop limit orders to reduce positions).
2. Control the overall risk of open positions, monitor risks, and follow your mitigation strategies.
3. The potential risk should be many times smaller than the potential profit. 
For example:

![Risk-management](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Risk-management/public)

4. Diversification, which we talked about in the article ["How to diversify a trader's portfolio?](https://resonanceholding.com/blog/trading/portfolio-diversification).

A trader is not a positioning investor. A trader cannot wait for years for an asset to rise. He identifies when it is more likely to go up and takes his take profit.\
\
What to do if an asset falls after buying? Some will say to wait, it will go up again. But a professional trader knows that it is better to make up for the loss and come up with another trade idea where you can potentially make more money and the probability of an upward movement is higher. After all, an asset can fall for a very long time and very hard.

>There are traders who bought BTC at 19,000 USD in December 2017. During 2018, BTC fell to 3,500 USD. What do you think: if they had been told in 2017 that BTC would be at 3,500 in a year, what do you think they would have done? Most likely even the riskiest would have sold out and limited a small loss on their finances.

In our [online university](https://resonanceholding.com/edu) we deal with more risk management cases and offer interactive risk assessment exercises for entering a trade.

## [Stop loss as an important part of loss limitation](#stop-loss)

Stop loss orders are an acceptance of risk. Unfortunately, many people ignore stops. This is usually backed up by the following arguments:
- My stop will be knockout anyway and the price will move without me!
- I only trade on the spot, there is no liquidation, so why would I need a stop?
- I use cross margin, which covers potential losses in trading. 

Let's look at each of these points in more detail:\
\
*** My stop will still be knockout and the price will go without me ***\
\
Yes, it is quite possible. But if it happens within the framework of your trading plan with clear rules, is it possible to say that you have done something wrong? The only thing we can advise you to do is to limit the risks of your trades so that even a few losing trades do not cause you too much emotion.\
\
*** I only trade on the spot, there is no liquidation, why would I need a stop? ***\
\
You'd think it would be a big deal if the spot price went down instead of up as expected. You could just **become an investor** and wait it out, a month, six months, or a couple of years. But you are essentially throwing yourself into the unknown. Your investment will be frozen and eventually, it will end up in one of the scenarios:

1. You will have to accept the loss and close the deal having lost a significant portion of your invested funds.
2. Continue to watch the price slide into the abyss, which in turn will erode your emotional resilience.
3. Your asset will be delisted from the major exchanges and you will lose all your investment.

Of course, one cannot rule out the possibility that the asset could eventually recover the entire drawdown and even grow nicely thereafter. But do such trading risks outweigh the growth of losses on other assets that never grew?\
\
***I use a cross-margin to cover potential losses. ***\
\
And are you sure that there won't be a severe squeeze due to a technical error or low liquidity that wipes out your investment? I think those who have been in the market for more than a year have seen such squeezes many times before. Just think, just one trade, just one stop not placed can TOTALLY wipe out your deposit. The chance of this happening is of course not high, but it is there. Is it worth the risk?

![вход_в_сделку_без_риска](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/вход_в_сделку_без_риска/public)

## [Adequate risk](#adequate-risk)

We have accepted that losses are inevitable in trading and recognized the importance of the mandatory use of stops. Now it is time to focus on the amount of risk that needs to be built into each new trade.\
\
In my trading, I (*noted – author of the article*) follow the following rules in terms of risk assessment:
- The risk per trade will not exceed 1%.
- If there are not enough arguments for an entry, a trade is opened with half the risk or not opened at all.
- If a new approach is being tested, the risk must be even less than 0.1-0.2% per trade. At this stage it is important to understand that the system works and not to start making money immediately.
- The total risk of open positions should not exceed 10% of the deposit.
- If 20-25% of the deposit is lost, trading stops and the trading strategy is reviewed. Trading will then be resumed with as little risk as possible, so that within a few months at least we would understand that the new approach is profitable.

## [Easy money in trading](#easy-money)

>As much as we would like it, there is no easy money in trading. You can only lose it easily. One accident, one event, or one mistake can ruin your hopes, multiply all your experience and time spent on trading by 0.

The worst thing that can happen in trading is when a beginner, after repeatedly increasing his risk, accidentally makes a significant profit. For example, a month's income from a single trade. This strengthens his confidence that he is doing everything right and therefore it is possible to open new trades with more risk. But sooner or later, the financial market will get its own way. And not just their own.\
\
If your deposit grows smoothly and gradually, without any sudden drops or growth spurts, and you limit the possible losses, it means that you are doing everything right. This is the only way of preservation your funds and at most increasing your capital. A momentary profit on a random news, signal, or participation in a pump-and-dump group will never make you rich in the long run. Always remember that!

Data analysis is not so important, strategy and tactics are not so important, what is happening in the market is not so important. But the most important thing is to competently manage risks. In this article, we explain the basics of risk management, as well as give practical advice on managing your risks in trading.

Before dealing with the topic, please read the observation and tell me if you have come across this scenario in real life? You see an advertisement for another cryptoanalysis or trading channel, click on the link and get into a Klondike of clickbait headlines: "+250% on one trade", "Made $20,000 profit", "200% on one trade" etc. All of this is backed up by screenshots of wallets with green pluses. That’s what happens, you get lost in a mass of colorful images and lines, covered with a veil of mystery (secret stocks indicators, oscillators, patterns), and you start to believe that someone "has understood the market" and you blindly follow them.\
\
But after a while you notice that your deposit has become “thinner”, and you start looking for other approaches to market analysis and/or other authors of channels. And you find Resonance. If you are here, it means you are in the right place and you will have a different view of the market. Let's start with the basics.

## [Types of stocks charts of price](#price-charts)

All stock market charts have two axes. The horizontal X-axis is the time value and the vertical Y-axis is the price value.\
\
There are several ways to display price changes on a trading chart. The simplest is the tick or line stock market graphs. It is not formed by time but by trades: one trade made – a tick has been formed. But the most common is the candlestick chart in the stock market, which collects ticks in candlesticks for certain periods of time. Based on the combination of Japanese candlesticks in trading, we make suggestions for where the price can go next. And it is only recently that the cluster chart has appeared in the arsenal of traders. We don't want to repeat ourselves, so you can learn more about each of them in the second lesson of the first level of our [online university](https://resonanceholding.com/edu/mycourse). But often it seems to many traders that "naked" charts do not give enough information about the possible future trajectory, so something more is needed. And that "something more" has been found.

## [Technical indicators for stocks](#indicators)

In the article ["What's wrong with technical analysis"]( https://resonanceholding.com/blog/trading/low-technical-analysis-efficiency) you can read about what technical analysis is and why it is low efficient. Perhaps adding indicators for stocks to your trading strategy can help increase its efficiency.\
\
Price level indicators are very popular among all types of traders, but especially among beginners. Even after studying many technical analysis courses and books, a beginner still has many questions about how to read a stock chart, how to interpret different market situations, how to draw levels, patterns, trend lines, etc. Not to mention the importance of determining the exact entry and exit point.\
\
That's where these indicators come to the rescue, including indicators for scalping or medium-term trading. And if you are disappointed with a particular indicator, you can always choose from hundreds of similar indicators. Combined with the exchange candlestick patterns, and drawn lines, it seems that crypto indicators are the Holy Grail that everyone is looking for. Traders seem to need a little tweaking and just the right combination of them.

## [Objectivity of indicators](#objectivity-of-indicators)

Why is the objectivity of trading indicators questionable? First of all, each indicator works according to a specific formula.

>The formula itself is a figment of the author's imagination. It is the author who defines the values to be chosen as defaults in the formulas.

Has anyone ever asked themselves:
- Why were these values are chosen and not others?
- For what timeframe was, for example, this forex indicator designed?
- At what risk does it work better?

Maybe the author invented it for himself, not to share it with anyone, or maybe on the contrary, to distribute it and make money from its sale.\
\
The diversity of indicators, e.g. best day trading indicators, is fascinating. At the moment you can find thousands of different indicators on some marketplaces. After all, anyone can create their own indicator with a minimum of programming and mathematical knowledge. And, of course, we are sure to find indicators that work almost perfectly. But only for a short time. In the event of a losing streak, beginners usually "tweak" the indicator settings by adapting them to different stock live charts. The [Texas Sharpshooter Fallacy](https://resonanceholding.com/dictionary?id=texasSharpshooterFallacy) is at its best.\
\
Many experienced traders, who have collected statistics, in their interviews are virtually unanimous in saying that the processing of the most popular basic indicators shows at best a 50/50 performance over longer distances. 

### [Why indicators don't work](#indicators-do-not-work)

The main problem with “best trading indicators”  is not their variety and the possibility of "fitting" almost any indicator to a liquid chart of any asset, not in the logic of their authors, but in what they show us. Indicators are usually based on a formula that takes into account certain indicators of price changes. From this we can conclude that no matter how simple or complex the indicators are, they only interpret price changes on the basis of history.

>Indicators will ALWAYS catch up with the price and are a priori incapable of predicting the future.

Does this have something to do with the mechanics of the market? Supply and demand? **It does not! And it never will**.

The market does not care at all about overbought levels, moving averages, and Fibonacci levels. These stock charts indicators:

1.  Do not take into account how liquidity is distributed.
2.  Do not consider which side is creating an imbalance by placing limits on the order book.
3. Cannot predict when a major player will enter the market, which can easily and at any time turn the market situation 180 degrees.
 
Think about what he will be more interested in: MACD divergence or the availability of liquidity in the order book to execute at the best possible price?

### [Robots based on indicators](#indicators-robots)

Imagine that you have tried trading based on indicators and the result has been disappointing, to say the least. And then, especially with the endless advertising of trading bots, you might be tempted to try algorithmic trading. For a fee of tens or even thousands of dollars, this soulless machine is ready to do all the work without any emotions or feelings, strictly according to the algorithm. And it is good if the seller of the trading robot at least gives you a manual explaining which indicators it is based on.\
\
Emotions, risks, and the choice of stop and entry points are no longer your concern. And... failure again.\
\
Of course, the result may be slightly better than manual trading, but that does not mean that the indicator-based trading robot has any special understanding of the market. Nothing fundamentally changes. Indicator-based trading decisions made by a robot, are just put in a nicer wrapper and still have nothing to do with supply and demand.

### [OK, no need for indicators, so let’s trade the “naked” chart?](#simple-chart)

Of course, there are many traders who will be foaming at the mouth to prove that you don't need indicators. The price takes everything into account and nothing else is needed. Not even a volume is required.

![Rooster-ph](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Rooster-ph/public)

Yes, people like to go to extremes. And deliberately deprive themselves of the benefits of cluster-volume analysis. To make an analogy, it's like trying to guess the contents of a picture from 1-2 puzzle pieces, although no one forbids you to open more puzzles to increase your chances. It seems a bit illogical, don't you think?

### [Are there any useful indicators at all?](#what-about-useful-indicators)

To be completely objective, there are. Some people call them "volume indicators", while we use the term "horizontal or vertical volume". These are also a type of indicator that shows us the volume traded for a fixed period of time or for a given price range. At least we can compare this volume with the previous one and draw some conclusions. But again, simply increasing the volume cannot be the reason for opening a trade. With the tools of the Resonance platform, you can get much more objective information to help you make a decision about opening a deal.\
\
We have seen time and time again that people who come to our community habitually refer to the BAS, Market Stat, and Market Delta as indicators. And they try to use the readings of the instruments as indicators, e.g. if the Balance Index deviates to a specific value from where there was a price reversal earlier, there is a great temptation to open a trade in the opposite direction. In this case, we try to explain why Resonance tools are so misnamed. And how exactly they should be used.\
\
In my opinion, if we really want to somehow call the Resonance tools, it would be more correct to call them metrics rather than indicators. Once again, I would like to emphasize that when using Resonance tools, we should not get hung up on specific Bid and Ask values in the order book or the Balance/Delta Index. Much more information can be obtained by monitoring the dynamics of the indicators in conjunction with price and volume changes.

## [Conclusion](#conclusion)

Indicators always attract attention because of their simplicity and affordability (although looking at the price of some paid indicators, one could argue otherwise 😊). But the more the trader gains experience, the more he learns about the market mechanics, the laws of supply and demand, and the faster his "evolution" happens. At first, the first seeds of doubt appear in your mind – is the analysis, various indicators and stock trading signals that effective? It is at this point that you must make the greatest effort to clear your mind of useless knowledge that is of no practical use. By entering into this not-so-easy way of analyzing supply and demand, you will open yourself up to new knowledge. And we hope there will be more and more of such people.

No matter how easy or complex indicators are, they only interpret price changes in history. Indicators are a priori unable to predict the future. In the article, we understand whether it is possible to trade using indicators.

Use of charts and indicators in trading

It is good to have a strategy to trade, but it is also important to select the right asset at the right time. Resonance stores the price, time, and volume of each trade, aggregates them and visualizes them as a cluster chart. This visualization allows large amounts of data to be evaluated quickly. 

>But a single chart on a screen is not very fast, so we have combined several charts in the Screener tool.

## [Setting up the tool](#screener-setup)

At first glance, our [Screener](https://resonanceholding.com/screener) doesn't look much different from other market screeners, but let's go through it one by one.\
\
The Screener interface is quite simple. There is a filter window at the top, a chart grid in the middle, and page navigation at the bottom.

![screener_setup](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/screener_setup/public)

In the filter window, you can select:

- grid (the number and position of the graphs on the page)
- ticker groups for analysis
- exchange
- ticker
- volume
- detailing 
- timeframe 
- a type of data to be analyzed (volume, quantity, delta)

## [Tips for effective use](#how-to-use)

The Screener allows you to quickly find an asset with an anomaly *(number 1 on the chart)* where you can make money. And by switching the chart type from volume to quantity or delta *(number 2 on the chart)*, you can instantly assess the position of the asset from multiple angles.

![how-to-use-screener](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/how-to-use-screener/public)

Sometimes you need to find an asset and still have as much insight as possible into what is happening. We recommend using a 1x8 or 2x4 Grid for this purpose. Anomalies are easier to see in this larger picture of what is happening.

![grid_screener](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/grid_screener/public)

Do you need to narrow your search?
1. Click on “Exchange” and select the exchange you are interested in.
2. Specify the ticker. For example, /USDT will show all USDT pairs on the selected exchange.
3. Select a timeframe in which you would like to start taking ideas. This will depend on your trading type: scalping, intraday, medium or long-term.

![settings-screener](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/settings-screener/public)

Screener is the first step in selecting assets. You can then move on to more in-depth analysis in RTT using the BAS, Speed Print, and other search engines.

## [What to look for in the Screener?](#what-to-look-for)

As we wrote earlier, the Screener is needed to look for anomalies.

>An anomaly (https://resonanceholding.com/dictionary?id=anomaly) is something that differs from the overall market picture. In terms of an asset, it is an increase in volume, a preponderance of buyers or sellers, and the breaking of buy or sell limits.

In the Screener, we look for abnormal volume peaks in the clusters and histograms.\
\
See the charts below and the areas highlighted on them. 

![Скринер_аномалия_1](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Скринер_аномалия_1/public)

![Скринер_аномалия_2](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Скринер_аномалия_2/public)

![Скринер_аномалия_3](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Скринер_аномалия_3/public)

![Скринер_аномалия_4](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Скринер_аномалия_4/public)

![Скринер_аномалия_5](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Скринер_аномалия_5/public)

![Скринер_аномалия_6](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Скринер_аномалия_6/public)

You can learn more about how to use the Screener in [the second level of the course](https://resonanceholding.com/edu) or use [the mentorship service](https://resonanceholding.com/account/prices?tab=mentorship) to make out the material individually with our trusted Resonance author.

A manual search for assets is very important for trading. We have created a unique market Screener that helps you quickly visually assess the balance of supply and demand in the market and find abnormal situations where you can make money.

Screener is the best tool for selecting assets to trade

We believe this is one of the most important tools in a trader's arsenal. Why is that? In order to sell something, you need someone to buy it from you. If an average trader with average equity sells or buys, it will have no effect on the balance of the market. But if there is more than average selling/buying, and not just in one asset, but in the whole group, then it is noticeable.\
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Market Delta shows the flow of capital between groups and helps the trader identify where there is an opportunity to make a profit while the market is out of balance.

## [Tool description and configuration](#tool-description)

Market Delta is composed of two blocks:
1. Chart block 
2. Table block

By default, all the index groups available for analysis are displayed on the chart, namely 
- BTC/STB
- ALT/STB
- ALT/BTC
- ALT/ALT
- STB/STB

You can add and remove index groups from the chart. Simply click on the check box next to the index name. The index color corresponds to the line color on the chart.\
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The chart settings also include switching data between volume and quantity, the timeframe, and enabling the Balance or Delta mode for visual assessment of the correlation.\
\
You can toggle the common axis mode on and off for easier analysis. It allows you to change the minimum and maximum values on the charts. When the common axis mode is on, the scale is the same for all charts and the most volatile asset is the most prominent. If the mode is deactivated, the charts are "stretched" in height and it is possible to study the volatility of the indicator in detail.

![Chart_Market_Delta](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Chart_Market_Delta/public)

You can also analyze the assets of each index group separately by clicking on the tab with the group name.

![Assets_Market_Delta](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Assets_Market_Delta/public)

The calculated Delta and Balance values are displayed in the table below the chart and can be visualized on the chart. To add an asset to the chart, click on the Ticker name in the table.

![Table_Market_Delta](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Table_Market_Delta/public)

We have had a quick look at what the tool consists of. Now let's take a closer look at what happens to the balance of an individual asset when there are more buy/sell transactions than usual.

## [Example of Market Delta use](#how-to-use)

Let's take a look at the chart and explain in simple terms what it means: visualising the Delta and Balance of a market or a single asset. 

The chart below shows that:

1.	The price is at 50, i.e. there is an equilibrium between buyers and sellers. 
2.	A rise in the index tells us that buyers are becoming active, and as the index rises, so does the price. But what happens if the index is going aside and there is too much buying? That's right, there will be an imbalance between buyers and sellers. If the index is high enough, it means that buyers need more money to push the price up (see point 3).

![Маркет_Дельта_Индекс_BTCSTB](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Маркет_Дельта_Индекс_BTCSTB/public)

3.	Let's take a real example.

The index is high and buyers need more money to push the price up. But since Market Delta is an auxiliary tool, let's look at what happened on the cluster chart in RTT.

![BTC-USDT_Кластерный_график](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/BTC-USDT_Кластерный_график/public)

Buyers are noticeable at the moment by Delta, but as we remember: they need more money to move up and we also see sales following. We, therefore, expect a shift in the balance of forces and prepare to open a short (see below).

![Сделка_в_шорт_BTC-USDT](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Сделка_в_шорт_BTC-USDT/public)

After our analysis, the price was down 3.5%. So, what happened to the index?

![Индекс_Маркет_Дельта](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Индекс_Маркет_Дельта/public)

The index began to fall, as did the price. Sellers started to discount volumes.\
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This example of using Market Delta on the BTC/STB group shows that this tool is a very powerful addition to your analysis. You can use it to determine the most profitable time to enter a trade.

>But remember that you can analyze not only BTC but the entire market of altcoins to the stables or any ticker separately.

Read more at [the online university](https://resonanceholding.com/edu) or you can use [the mentorship service](https://resonanceholding.com/account/prices?tab=mentorship) and make out the material individually with our trusted author Resonance. 

Market Delta is one of the most important tools in a trader's work. Why? It shows the flow of capital between index groups and helps traders to identify places where there is an opportunity to earn money while the market is out of balance.

Market Delta: how to use the tool

The methodology of evaluating a company based on different micro- and macroeconomic conditions originated in the stock market. Any public project in which people invest is a business, and it has a lot of indicators that need to be evaluated. The way to evaluate these indicators is called "fundamental analysis" (hereafter the FA). You can find “fundamental” meaning in our [trader's dictionary](https://resonanceholding.com/dictionary).

>The "father" of this modern type of market analysis is Benjamin Graham, who published his Security Analysis back in 1934. This book is considered the Bible for investors all over the world thus far. His most brilliant follower is Warren Buffett, who has long been at the top of the richest people in the world.

Since the middle of the 20th century, the market has changed; not only the types of analysis have transformed, but also the assets being analyzed. Therefore, today the fundamental analysis of stocks is applicable not only to commodity and stock analysis but also to the crypto market. 

## [Fundamental analysis of crypto assets](#fundamental-analysis)

Let's take a look at how to analyze stocks and crypto to determine whether or not to invest in an asset. 

### [Macro level](#macro)

At the macro level, there are the following three areas of study within the financial analysis:
1. Current global news, the general economic and political background, the favorability of the investment climate. 
2. Status of industries, determination of the greatest interest in a particular industry. 
3. Researching the news background of the company, from current reporting to transactions of various scales.

### [Micro level](#micro)

At the micro level, the following indicators must be noted: 
- Tokenomics (business model, methods of using a crypto asset, blockchain activity)
- The project development team (and other internal factors)
- Economic situation in the world
- User interest in crypto currencies (demand among market participants)
- News background and economic forecasts

Let's delve into each indicator and its meaning.

1. **Financial metrics**, i.e. data on how the asset is currently traded, as well as what its liquidity and distribution patterns are.
2. **The number of transactions** as an indicator of chain activity. The more transactions, the greater the need for this project. However, you have to be careful with this indicator. Onchain activity can increase even if one user transfers funds between his own wallets.
3. **Information about the number of transactions** within the blockchain. An increase in this indicator indicates an increase in interest in the coin.
4. **The development team** is a group of specialists who undertake the development and promotion of a given product to the masses. Here you can take note of the team member’s background, the presence of successful cases in the past, how the community looks like on GitHub, and what the activity is like. A coin, the development of which has never stopped, may be more attractive than one, the repository of which has not been updated over two years.
5. **User interest**, i.e. in what way the developer's project will be useful to an average user, whether there is something in their project that can really interest, and whether it will be useful in the future.

>It is very important to know how much money has been spent on development and marketing in order to understand how long the project will last and what its market value is. You also need to know if the project has investors. Why is this so important? When funds run out, new investments are made by selling coins on the market. This additional supply lowers the coin price.

Remember that no project team will ever say anything bad about itself, and some projects may even hide certain information from their users. When the project is listed on the exchange, most investors will simply dump their tokens, which will further lower the asset price.\
\
Let's look at some real market examples.\
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**Example 1:**\
\
In this example, we see some players dumping the asset once it was listed on the exchange, thus lowering the token price.

![Фундаментальный_анализ_пример_1](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Фундаментальный_анализ_пример_1/public)

Here is an **example №2** of big players dumping right after a listing:

![Фундаментальный_анализ_пример_2](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Фундаментальный_анализ_пример_2/public)

## [Why should a trader analyze the financial market?](#goal-of-fundamental-analysis)

It is important to study and apply fundamental analysis of the stock market if:

1. You feel that you understand nothing at all about the tokenomics of the project you want to invest in.
2. You're scared or worried about price fluctuations and want to understand the basics. 
3. You're diversifying your assets, and you're looking at buying assets over the medium to long term. 

>It is important to note that the analysis investment is mainly used by medium and long-term investors. In short-term fundamental trading, there is no point and no time to perform a full-fledged in-depth FA. 

When you know what a crypto project is, what the underlying idea is, and what team is working on it you may speculate about how big this project will grow. However, in our article ["What's wrong with technical analysis"](https://resonanceholding.com/blog/trading/low-technical-analysis-efficiency) we told you that "speculating" and "guessing" won't do any good. The difference between fundamental and technical analysis is that unlike technical analysis, which is focused on historical data and volumes, the FA is focused rather on qualitative factors. That said, neither method is a grail that will tell you 100% for sure which asset will bring you profit.\
\
The FA is the tip of the iceberg, and your task is to delve deep into the ocean. The decision to buy an asset should be made on the basis of objective facts only, and objective factors are supply and demand, which can be observed on the Resonance [cluster chart](https://resonanceholding.com/rtt). Study them and thereafter make a decision whether to buy/sell an asset in the future.

## [Conclusion](#conclusion)

Comparing fundamental vs technical analysis, the first one focuses on fairly qualitative factors and is more suitable for long-term investors than for intraday traders.\
\
The real interest of the buyer in the asset can be seen only on the cluster chart and with the help of tools on the Resonance platform.
You can learn more about fundamental investing and company valuation techniques in the "Fundamental Analysis" lesson in our [online university](https://resonanceholding.com/edu). Go for it!

In the article, we consider what indicators of fundamental analysis can be used in the cryptocurrency market to determine whether to invest in an asset or not.

Fundamental analysis in trading: what it is and how to apply it

Every day, millions of transactions occur in the market. And no matter how popular an asset is, no matter how much attention market participants pay to it, there is always a risk that some unforeseen event could affect the price substantially. Here, of course, you must correct me, because everyone in our community remembers that news does not affect the price. However, the actions market participants take under the influence of that news, of course, do. Therefore, the participants can move the price up or down with their money. For an investor, in terms of money management, the major risk is a significant decrease in demand for the asset he bought. There can be several unsuccessful purchases, and instead of the expected tens percent of annual return, one day you may see a significant drawdown, which will hurt your motivation and mood. The concept of the [diversifying portfolio](https://resonanceholding.com/dictionary?id=diversification) was invented to reduce such risks.

>Portfolio diversification means the composition of an investment portfolio by buying different financial instruments not related to each other. 

> In other words, it's a "don't put all your eggs in one basket" rule. Even if you are confident that the market will rise, it is unreasonable to buy one asset only. It would be more efficient to divide capital and buy several, not interrelated assets. 

![resonance_diversification](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/resonance_diversification/public)

After reading this diversification definition, a beginner may have a misconception of what it really means. At a first glance, the advice "don't put all your eggs in one basket" looks simple – don't buy 1-2 assets with all your money, but rather allocate capital to more assets and systematically accumulate them at a certain ratio.

Have you gone to the stock exchange yet? 😊 Stop!

## [Secure asset storage](#savety-of-savings)

Diversification of a stock portfolio, or etf portfolio, or any other set of assets should not start with the choice of assets, but with the choice of the site where they will be stored. This can be both exchanges, which should also be chosen thoroughly, as well as various hot and cold wallets. Therefore, the advice "do not put all your eggs in one basket" applies, first and foremost, to the safety of your funds, rather than the selection of specific assets. Ideally, capital should be distributed among several top exchanges. Also, for those who plan to make transactions infrequently, you might want to look at hot wallets for greater security:

- MetaMask
- Exodus, etc. 

Or cold ones:

- Ledger
- SafePal
- Trezor, etc. 

## [Investment and speculation. The difference](#investments-and-speculation)

The line between investment and speculation is quite blurred, but there is still a difference. The goal of speculation is to make a profit after the position is fixed. Such fixation can take place both within a few minutes and after a few months.\
\
An investment is making a profit without fixing the asset. The most trivial example is buying an apartment and renting it out. Now, with the development of stacking, such opportunities have appeared in the cryptocurrency market as well. By buying an asset, we can not just keep it as a dead weight in our wallet, but also increase its amount thanks to, for example, stacking.\
\
Also in the case of speculation, we may lock our positions without waiting for our targets, if the market situation sharply changes to our disadvantage, in the both short and long term. Diversified investments, on the other hand, do not typically require a premature fixation of positions, no matter what happens in the market. Conversely, a strong price dip, in this case, can be a good reason to increase a position.

## [Principles on how to diversify portfolio](#principles)

While the basis of our actions for speculation is a trading strategy, the investor portfolio cannot be built without a trading plan, which should include:

1. The investment horizon and the list of targets we ultimately want to achieve.
2. The distribution ratio of diversified funds between exchanges, hot or cold wallets.
3. The maximum possible number of assets in the portfolio and their distribution ratio to reduce risk. 
4. Conditions for buying or increasing a share of an asset.
5. Criteria for partial exit from positions or their complete fixation.

In cryptocurrencies, as well as in traditional stocks, so-called asset classes have formed. These can be Defi projects, exchange-traded tokens, old conservative coins (BTC, ETH, LTC) or new assets that have become popular recently. In any case, diversification of an investment portfolio also includes the distribution of assets into classes. Where there is an unplanned bias towards one or another asset class, portfolio rebalancing should be performed.

### [When to buy?](#when-to-buy)

Most newbies build their portfolio in stocks on the basis of advice from popular bloggers, course authors, and other infomercials and dubious individuals, who seem to them to have much more experience and authority than those who are trying to figure this out on their own. It is wrong and even a little naive to think that you can easily reproduce someone else's results by repeating someone else’s actions. Everyone has different initial financial capabilities and investment horizons. Someone is ready to add a certain amount of capital every month, and someone does not plan to make any new additions at all.\
\
There is a fairly popular strategy where purchases are made at regular intervals, without looking at the price and at a small fixed volume. This is the DCA (dollar cost average or dollar cost averaging) strategy. How justified such purchases are without regard to market logic is, of course, a debatable issue, not to mention how psychologically difficult it would be to buy an asset that is growing week to week.\
\
Therefore, you should strive to make the decision on what to buy, when, and at what price on your own.

### [What does Resonance have to do with it?](#how-resonance-helps)

Can Resonance become an assistant in building and diversifying long-term investment portfolio? Definitely! In lesson 7 of the first level of training ["Capital Management: Diversification, Money Management"](https://resonanceholding.com/edu), the rules of diversification and points to focus on when managing capital are discussed in detail. 

![resonance_edu_en](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/resonance_edu_en/public)

The trader should always remember that:

>Every market action must be logically justified in terms of supply and demand, be it a speculative purchase or a long-term purchase of an asset with a strong intention not to sell it for several years. This way we try to neutralize the influence of emotions on our actions.

Surely, with a long-term investment horizon it makes little sense to choose the most comfortable buy price on the minute timeframe. However, it is quite possible to take a couple of hours a week to view the cluster chart on the daily timeframe.\
\
Perhaps it is at this point, after a strong fall, that noticeable volume traces of a strong buyer are formed. Especially if the indices have also been falling for a long time. Based on the totality of factors, we can conclude when exactly buying to increase the share of the asset is the most justified.\
\
Obviously, Resonance won't help you buy a certain part of an asset at the best possible price every time. However, these purchases will definitely be justified in terms of supply and demand, rather than being spontaneous, intuitive, etc.

## [In lieu of a conclusion](#conclusion)

A perfect investment portfolio should ALWAYS contain unallocated funds to buy assets should the price drop. After all, each purchase, even by a small amount from the overall deposit, after a good price decrease, reduces our average purchase price and, therefore, our potential profit when the investment goals are achieved grows.

Investments may seem boring to some people because there is no such emotional drive as in speculation. However, that's their advantage, because their mental impact is much lower. The main requirement is to follow the principles of diversification, and then even the collapse of a single asset (we all remember Luna or FTT) will not have a significant impact on your trading plan and investment deposit.\
\
Trade and invest wisely.\
\
P.S. All advice in this article is advisory only.

Portfolio diversification is one of the most important principles of capital management. Traders always hope for the best but must be prepared for the worst. In this article, we talk about the basic principles of portfolio management and give useful advice.

Diversifying a trader's portfolio

Finding truthful information about the market and its processes is extremely difficult. People are used to googling to find something useful and informative. And yes, if you search for "spread is", you still have a chance of getting an objective explanation of the term. But if you search for "market mechanics", you might be horrified. The first few lines of search results will be taken up by articles stating that "the main types of market mechanics are: trend, correction, reversal, level breakout and rebound...". By filling his head with such knowledge, a trader risks not only losing his common sense, but also his deposit. That is why we try to spread as much objective information about the market as possible.

>In our opinion, talking about the mechanics of the market in terms of "reversals and breakouts" is like talking about the mechanics of an internal combustion engine, but not about the processes that take place in it, such as fuel injection, combustion, movement of the pistons under the action of the gases produced, but simply saying "the car is going and it is turning left".

Trends, corrections, and reversals are a consequence of what has happened in the market. Or as Aires said in [the second level of course](https://resonanceholding.com/edu) - "the shadow of a friend".

The real mechanics of the market are:

●	how orders are matched
●	how buyers or sellers shift the market equilibrium and cause price movements
●	How liquidity flows from one hand to another, from one set of assets to another.

## [The basics first](#basics-first)

How does the process of buying or selling an asset on an exchange work?\
\
For example, you have $10.000 in your wallet and you decide to buy Bitcoin. How to buy it here and now? Quite simply! On the exchange terminal, there is a button labeled "Buy", you press it and in a fraction of a second, the number of Bitcoins you have enough money for appears in your wallet.

![how-market-works](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/how-market-works/public)

A seemingly unremarkable activity. You do it every day of your life and you don't even think about it: you buy a coffee from the coffee shop near work or groceries from the shop near your home. But then something goes wrong and your favorite drink isn't there. You're willing to pay a double price just to get that cup of coffee you want, but it's impossible because it's just not there.\
\
The same goes for buying Bitcoin. For you to be able to buy Bitcoin so easily, someone has to want to sell it. But that someone may not be as hasty as you, they may have an objective to sell the asset for more than the current price, so they put their lot in the order book. By the way, you could also buy Bitcoin cheaper.

## [BID ASK, what is it?](#bid-ask)

In many of the articles on this blog, you'll come across references to the most basic concepts, because you can't do without them. For example, there are two sides to the market – buyers and sellers. They can manifest themselves in two ways:
1.	Actively
2.	Passively. 

Being active means that you press the "Buy" or "Sell" buttons on the trading terminal and make an immediate trade, in other words, you trade the market.\
\
A passive manifestation is a pending trade when your lot is placed in the order book. This is where we come across the BID, ASK, Spread terms.\
\
There are two types of orders in the market: to sell and to buy, i.e. Bids vs Asks. Let's go into detail. Defining Asks, these are sell orders, placed at the top of the order book and marked in red. The definition of BID is – buy orders placed at the bottom of the book, they are green.

![bid-ask-explanation](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/bid-ask-explanation/public)
 
## [What is a Spread?](#spread)

What are spreads in trading and why should you know about them? There is a separate type of trading – trading spread, but this is a more complicated subject and we will talk about it in future articles. For now, we will just cover the basic terms.

>The Spread exchange is the difference in bid ask price between two different similar commodities traded on open markets.

Put simply, Spread is the difference between the “best” buy price (Bid) and the “best” sell price (Ask). We put the word "best" in quotes because it is the best price at any given time, but in reality it is just the closest price to the market.

The Spread can be narrow when the difference between the BID and ASK prices is minimal. As the difference between them increases, the Spread widens. Correspondingly, the Spread is wide when the difference between the Ask and Bid price is significant. Such a difference exists because buyers want to buy the asset as cheaply as possible and sell it at a higher price. On the Resonance platform, the Spread can be seen in [the Depth Density](https://resonanceholding.com/rtt) tool.

## [Conclusions](#conclusions)

If you urgently need to sell a Bitcoin and press the "Sell" button, the exchange's mechanisms will match it with the next bid on the BID side. And vice versa. If you urgently need to buy it, your dollars will go to the order book and look for a better bid on the ASK side.\
\
It is a common situation where you have already bought what you want and have decided to sell at a higher price, but you do not have much time to sit in front of your computer waiting for the price to improve. In this case, you enter the Ask, i.e. you place your sell order in the order book on the ASK side and humbly wait for someone to want to buy from you. 

>These are the simple, straightforward, and true market mechanisms: buys are executed against sell orders and sales are executed against buy orders.

These basic principles of pricing have left their mark on history. And it is on the basis of these processes that the trader continues to study what is happening in the market, to analyze, to gather all the arguments, and to profit from them.

Finding truthful information about the market and the processes taking place in it is extremely difficult. Therefore, we try to distribute as much objective information as possible about mechanics, and fundamentals. In this article, we are talking about what Ask, Bid, and Spread are.

What are BID, ASK and SPREAD in trading?

Trading, like any other job, can be stressful and cause emotional reactions. However, in trading, emotions can have a direct impact on financial results, so emotions and stress management in this area are especially important.

>In this article, we've put together some tips to help you accept uncertainty, manage your stress and emotions, and keep patience in trading. 

## [Tips for managing your emotions](#advice)

***1. Prepare beforehand.***
Planning and having a good trading strategy to follow as well as documenting your goals and limitations is essential. A well-prepared trader will be more confident in his actions and will be able to manage his emotions in the market in a more effective way. In the <a href="https://resonanceholding.com/edu" target="_blank">Level 2 lessons</a>, we go over different trading strategies and also the principles of creating a trading plan. This can help you prepare for trading.

![online_university](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/online_university/public)

***2. Don't act under the influence of emotions!*** 
Trading psychology states that trading under the influence of emotions can lead to bad decisions and losses. Try to stay cool and analyze the situation rationally, especially if you feel very anxious or fearful.

***3. Manage your own expectations.*** Set realistic goals and don't set impossible goals. Don't expect every trade to be profitable, and don't let past failures influence your future decisions.

***4. Use relaxation techniques.*** 
Use emotion management techniques such as mindfulness exercises, positive self-talk, meditation, or yoga to reduce stress levels and calm your mind.

***5. Control your physical condition.***
It is important to take care of your physical well-being, including sleep, nutrition, and physical activity. A healthy body will help keep a healthy mind.

***6. Use a trading diary.*** 
Note down your trades and analyze your decisions. This will help you better understand your trading style and find new ways to improve your skills as well as learning from mistakes. Resonance offers a tool like trader's notes. You can read more about how to use them in the second level lesson 7.

***7. Communicate with other traders.***
Find out how they manage their emotions and stress, and implement that knowledge into your own trading.\
\
One important thing to understand is that managing your emotions is a long-term process that requires constant working on yourself. If you pump up your mental resilience, it will help you become a more successful trader in the long run.

## [How to prevent getting burned out in trading](#burnout)

As we mentioned above, trading is associated with high levels of stress and decision-making under pressure. Traders with fragile emotional intelligence can experience a burnout effect.

>Burnout is a physical, psychological, and emotional condition that occurs when you feel exhausted, depleted, and have lost interest in your work.

Here are some tips to help prevent burnout in trading.

- ***Breaks from work*** will help you relax, look at the situation from an aside, clear your head, make adjustments, and analyze the results.
- ***Physical activity*** will help you reboot and return to work with renewed energy and concentration.
- ***Not to forget about life outside of trading*** – romantic relationships, friendships, personal interests, traveling – all of these potentially give energy and add value to your life.

>It is important to understand that burnout is a serious condition that can lead to mental and physical problems. Take care of your health and find a balance between work and rest. 

![burnout](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/выгорание/public)

## [Books about psychology in trading](#book)

Here are some books that may be useful for learning psychology in trading:

1. "Trading in the Zone" by Mark Douglas – about the influence of psychology on the trading process and how to learn to control your emotions and make informed decisions.
2. "Trading Psychology: Tools and Techniques for Understanding Markets" by Brett N. Steenbarger – practical tools for managing emotions and increasing efficiency."
3. "The Disciplined Trader: Developing a Winning Attitude" by Mark Douglas – A description of the principles of trading psychology, including risk management, decision-making, and the mindset of success.
4. "Mind Over Markets: Power Trading with Market-Generated Information" by James F. Dalton, Eric T. Jones, and Robert B. Dalton – description of the trading approach based on psychological factors that influence the market.

## [Conclusion](#conclusion)

Psychology plays an important role in trading. Despite the fact that trading at first glance may seem to be a purely rational and mathematical discipline, psychological factors such as emotions, overcoming fear and greed, etc. can greatly affect the decision-making process and, consequently, trading results.\
\
The psychological aspects of trading are not just limited to managing emotions and stress, but also include understanding how to set your trading mindset for success, how to develop self-discipline, manage risk, and develop psychological readiness for trading.\
\
In order to become a successful trader, apart from knowledge about the market and study cluster analysis, it is important to develop psychological skills and abilities. All of these will help to stay calm and remain confident in making decisions in conditions of high uncertainty and market instability. 

Trading, like any other job, can be stressful and cause emotional reactions. However, in trading, emotions can have a direct impact on financial results, so managing stress and emotions in this area is especially important.

Psychology in trading: how to manage stress and emotions?

>A trader is a market participant who opens and closes transactions to buy and sell assets for profit. The process of becoming a trader today can be divided into three stages:

>- A "student" – who has not yet lost his deposit but is investing in his education.
>- An "experienced trader" – who neither loses nor wins money.
>- The "professional" – who trades with some kind of profit.

Of course, if you are reading this article, it means you are wondering how you can get into the third category and join the “pros”. In this article we are going to talk about those they are trying to replicate and those they are trying to imitate.

## [The main role of a trader](#traders-goal)

Historically, an important part of a trader's job is to try to understand what has happened, is happening, and will happen in the future with the price of an asset. After all, it is on this difference that market participants try to make their profit. Everyone has their own methods and tools to do this – not only objective but also fantastic. But if the past and the current price can be dealt with somehow, then the chances of dealing with the future price are close to zero.

It is also worth correcting that it is not enough for a trader to simply "predict" what will happen to the price. Thousands of such predictions are made every day by various "analysts" in the market, often changing their opinion more than once to the opposite.

Just for an experiment, google: "How much will bitcoin be worth?" 

![bitcoin_forecast_en](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/bitcoin_forecast_en/public)

According to the general concept of trading in the market, the trader must regularly determine the future price. They must also determine the exact time and price level at which the expected changes will occur. However, traders firmly believed that this can be done with any asset at any time.\
\
From the above, it is possible to create a portrait of a trader that most people have in mind and strive to achieve.

## [The perfect trader](#perfect-trader)

What is he?

1.	Has the knowledge, skills, and tools to analyze the market and any asset.
2.	Accurately performs financial analysis and predicts future price movements. 
3.	Buys and sells at the most (or nearly) appropriate times.
4.	Makes a profit thanks to his ability to predict future prices.
5.	Trades for profit in any asset.
6.	Always knows the answer to the question: what level will the price reach, and knows the exact time when it will happen.

Do you recognize yourself in this vision of the "perfect trader"?\
\
During our time in the market, we have come to the conclusion that this misperception was formed in narrow, non-professional circles and then spread to the masses and became firmly entrenched in people's minds. And to change it, we need to change our approach to market analysis. 

### [So, what’s the secret?](#trading-secret)

The first thing to understand is that price is not primary, it is driven by supply and demand. Once you understand this, you will know that you need to learn how to determine supply and demand in the present, not price in the future.

Price is the direct result of changes in supply and demand, not the cause. Even if the price falls sharply but demand never appears, it will not rise. No matter what the charts, indicators, figures, and other mechanics that do not take demand into account show. 

If you want to trade if not perfectly, but at least profitably, you have to ask yourself the question: how do you determine supply and demand in the present and in the future? Nobody knows the future. Unless...

![Fortune_teller](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Fortune_teller/public)

We don't know what's going to happen to us tomorrow (even though it's our lives), let alone what's going to happen to the price of an asset we don't even own. So, the most logical and correct way is to learn how to determine supply and demand in the present. And then to learn how to find those assets where there is a large preponderance of one of the parties.\
\
[Resonance tools](https://resonanceholding.com/rtt) help to determine such situations.

## [The professional trader](#professional-trader)

In our opinion, the successful trader to aspire to is different from the conventional one. But we are confident that it is the exemplary one.

1.	Does not try to predict the future.
2.	Obtains objective data from the exchanges and interprets it appropriately.
3.	Finds only those assets where there is already a strong imbalance between supply and demand forces. 
4.	Before the price reacts to this imbalance, the trader enters the trade with those who have created the imbalance and exits with them, profiting from the price difference.
5.	Does not get greedy trying to squeeze every last penny out of the market.

Share this article with your friends and other communities so that as many people as possible can think about an alternative approach to the market. Maybe it will help someone to stop losing in the market and make their trading more profitable.

The portrait of our successful trader differs from the generally accepted one. In this article, we analyze the difference between an “ideal” and a “professional” trader and what, indeed, is worth striving for.

Portrait of a Professional Trader

The Internet is overflowing with advertisements about cryptocurrencies, trading, and the "success" of traders and investors. Everyone has apartments, cars, and yachts and everyone is trying to sell their story of finding the "Holy Grail". Their stories are based on lines, waves, patterns on charts, indicators, and signals. All these attributes "work" in the eyes of an ordinary person because somehow an ordinary trader has become a member of the “Millionaires' Club".

> But we forget that only trained minds make accidental discoveries. – Blaise Pascal

In order to trade profitably, you need a trading strategy, risk management, and most importantly – sufficient knowledge and understanding of your profession.\
\
Let's start with the basic idea of what technical analysis of the market is and why it is inefficient.
\
Technical analysis is a set of mechanisms and tools for predicting price movements based on historical patterns in the past. The basis of technical analysis is the analysis of a price chart.

> In the second intermediate online university lesson [Resonance](https://resonanceholding.com/edu) you can learn more about what technical analysis of the financial markets is, its history, and the reasons behind it.

## [Reasons for low TA efficiency](#low-efficient)

In the article ["The Portrait of a Professional Trader"](https://resonanceholding.com/blog/trading/professional-trader) we said that most traders try to understand what was, is, and will happen to the price of the asset. But few realize that price is the consequence of volume changes. 

> One of the most striking disadvantages of technical analysis is the fact that none of the indicators show the real state of the market, because it is impossible to understand by analyzing the price how much money is expected in the bids and how much money has been involved in the trades.

When we talk to novice traders about technical analysis, we often use the analogy of a magician. Think back to when you were a kid and saw magic tricks. Cool, if it was a professional magician or an illusionist. It was the most amazing experience: a miracle happens in front of your eyes and you just refuse to believe your eyes.

![david_copperfield](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/david_copperfield/public)
 
Of course, we have grown up and realized that every magic trick has a secret. Some are explained by sleight of hand, some by third parties, some by the amazing laws of physics, some are just illusions and the play of light and shadow.\
\
But there are areas where even adults still believe in magic tricks. For example, the belief that prices somehow magically follow certain laws. The "magic" of technical analysis makes you believe that people, conditions, the global economy, a series of political and social events and millions of other factors must follow a predetermined algorithm.\
\
With us, you risk losing your faith in technical analysis and/or your faith in illusionists. After all, once you know the secret of the trick, you no longer believe in miracles.

## [Think or Swim?](#think-or-swim)

Let's go over it again: the market is supply and demand. We can know exactly what the demand for history has been, we can estimate it at any given time. But in the future...\
\
In trading, people have armed themselves with a lot of tools to analyze history and think that by looking at a chart they can determine future demand. For example, looking at a chart like this... What can this tell a trader?

![Drawings_on_chart](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Drawings_on_chart/public)

It's ok if we are talking about assets where world events are having or will have a direct impact on demand. For example, weather, political or economic events. Of course, very few people take all of these factors into account when trading on Binance. But the usefulness of these indicators is also highly questionable for most assets on сrypto exchanges.

> Remember this truth: no one can determine when and at what price a person will want to buy or sell. All you need to know is how to make money in the market!

And it's simple, and without trying to "think". A speculator's job is to find assets in the market where there is an abnormal preponderance of supply and demand in the here and now. This is also known as a market inefficiency. You need to make money on these [imbalances](https://resonanceholding.com/dictionary?id=imbalance). Buy only assets that are in high demand and have not yet had time to rise in price. You can sell by setting up take profits in risk management in advance, or you can wait for the balance to shift to the sellers. Either way, a decision should only be made on the basis of the available data, and predictions should be minimized (preferably to 0).

## [Conclusion](#conclusion)

So, we have tried to make it clear to you that it is the volume of supply and demand that matters most. It can be seen in the glass, in the volumes, in the speed of market transactions, and in the ratio of sales to purchases. If it's not there, it doesn't matter what the last price on the market is. The volume will still not be realized.

- No candlestick pattern predicts further arbitrage action.
- Not a single "support" line shows the real state of demand for an asset, let alone predicts the potential money in the order book.
- Not a single technical analysis figure shows the balance between supply and demand.
- Not a single "wave" predicts the future behavior of people.
- No Fibonacci zone guarantees that there will be money in the order books, let alone that buyers will buy even if prices stop moving, creating a "correction".

Join the profitable analysis side of the platform [Resonance](https://resonanceholding.com/ru/rtt) platform.

Among the most significant shortcomings of technical analysis, it is indicated that not a single indicator reflects the real state of the market. In that article, we analyze these and other reasons for the ineffectiveness of technical analysis ...

What's wrong with technical analysis

Those who want the "here and now" frequently ask how to trade intraday. You will get the answer in this article, where we will examine what is scalping or what is intraday trading, what strategies exist, and how Resonance tools can help in successful trading.

>Scalping is a type of trading in which transactions are made within small intervals of time, from a few seconds to a few minutes. The rate of profit in these transactions is a few pips (ticks).

When people in our community ask the question, "What do I start with?" we answer – with education. Without knowledge of the subject, you would look like a fortuneteller, rather than a professional trader. Lets go over a few basic principles again.\
\
There are two sides to the market:
1. Buyer
2. Seller
 
And there are two types of orders:
1. Limit
2. Market
 
The participants include algorithms, private traders, and large participants (investor capital).
 
Finally, there are a few options for market strategies, namely the following three:
 
- Trend movement (long-term movement)
- Returning to the average
- Market-making (intra-[spread](https://resonanceholding.com/dictionary?id=spread) trading)
 
>You may ask why are there only three strategies. The fact is that they are all strategies for large participants who have a lot of money.
 
Scalpers, on the other hand, compete mainly with algorithms. At the same time, they see the market wider than the pattern of that very algorithm, so they can get the support of large participants and the so-called crowd.\
\
Traders can also intraday trade inside the spread, but to do this they need to act faster than the algorithms, which is almost unattainable in reality. That is why we share our option of successful trading in the market.\
\
What is needed:
1. Filter assets by interest/liquidity.
2. Switch between pairs and look for a situation when the price is stuck in limit orders and almost does not move.
3. Seek the interest of market participants in the form of trades away from the accumulation of limit orders.

## [Scalping strategy from Resonance](#scalping-strategy)

The Resonance tools allow finding profitable assets and intraday trading with several tools:
- Speed Print
- Hippo
- BAS
 
Within the market processes, the winner is the one who knows how to shift the expectation of the results of his actions in a positive direction. How? By having more information, having it faster than most players, or having more opportunities than most. Hence the moral for the investor: trust money and trading scalping to those who can prove to you that they have one of the three advantages, or better yet, two or all three.

### [Speed Print](#spead-print)

Transactions or ticks are occurring in the market continuously. We can assess the interest of participants in an asset by the size and frequency of transactions. The Speed Print search engine helps us with this assessment.
 
In the main search engine window, assets are sorted by the highest signal coefficient by default. In order to immediately see the most relevant assets, you can additionally set a filter by average speed, for example, 5, which will help eliminate the assets with less than 5 trades per minute on average from the table.

![speed_print_en_light](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/speed_print_en_light/public)
 
The table is updated every minute, so you can find potentially interesting assets before there is a significant movement. Speed Print can take your scalp trading to the next level if you learn how to use it properly.

### [Cryptocurrency scalping with Hippo](#hippo)
 
Another useful tool for those interested in trading intraday. Hippo is a search engine for large-limit orders.\
\
The main purpose of this tool is to notify you that a very large limit order has appeared in the order book on a particular asset and that the market may respond to it.

![hippo_en_light](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/hippo_en_light/public)

### [Intraday trading strategy with BAS](#bas)
 
BAS is a tool showing the number of limit orders in the order book for each instrument on the available exchanges.\
\
The traders task is to look at what is happening in the order book both on the BAS charts and separately examine limit orders, because even a single limit order, to which there is still more than one percent of movement, can create a large overrun.

![bas_en_light](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/bas_en_light/public)
 
You can learn the details of using these tools in our [online university](https://resonanceholding.com/edu).

## [Exclusive tip for a scalper trading](#tip-for-scalper)

It is not enough to know scalping strategies. When it comes to practice, you also need to know some practical tips to make scalping more successful. Check out one of such recommendations below.\
\
The scalper must remember about three trading sessions:

- Start of the European session (there may be potential options)
- Start of the American session
- End of the American session
 
In the evening, the scalper closes all positions, but analyzes what happened during the day, studies examples of how the price of different assets moved, and what happened. At such moments, there is an opportunity to notice something unusual and take advantage of it next time.\
\
P.S. Remember that scalping trade for beginners and for professional traders is the same set of tools and actions. Your strategy based on a big experience of losses will not work to your benefit, increasing your deposit. That is why learning new things and using tools that really work is the key to your successful intraday trading.

How to trade intraday is a very common question for those who want “here and now”. You will receive an answer in...

 Intraday Trading. Scalping

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Author's articles and fresh news for traders and investors about trading in financial markets. Features and training in trading. Tips from trusted authors and analysis of trading situations.

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Articles that reveal the possibilities of trading tools on the Resonance platform. Learn more about search engines for intraday trading, as well as a medium and long-term investment. Learn to analyze the market objectively and take your trading to the next level.

Learn everything about trading in our expert articles. We cover all aspects of trading, from basic mechanics to advanced techniques. The blog will be a great addition to the training course and the posts feed.

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Resonance cluster chart. Analyze supply and demand volumes

Resonance chart

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A tool to analyze price volatility, aggregated delta by volume, best coins for grid bots, most active coins in the market, liquid ticker comparison, standard deviation of price and volume, cost of price movement, heat map by limit orders, market capitalization, and Bitcoin dominance. As well as back-tests of coins for grid algorithms.

Dashboard | Resonance

The trader's dictionary will help you understand the slang that is used in training traders, as well as for analyzing the financial market. The dictionary contains all the terms that will help you better adapt in the field of trading.

Trader's dictionary | Resonance

Online course about trading and financial markets for beginners and experienced traders. Interactive lessons. Learn more about trader's psychology

Online education trading | Resonance

My course | Resonance

Answers to the most popular questions about the financial market, trading, arbitrage, assets, anomalies, technical analysis, futures and other questions and answers about the financial market.

Questions and answers about the financial market | Resonance

Posts by trusted authors and professional traders about financial market analysis, trading, training and other trading secrets

Posts feed | Resonance

Market Delta is a tool for analyzing the flow of capital between index groups. Groups include bitcoin, stablecoins, alcoins, fiat currencies and more.

Market Delta | Resonance

Market Stat is a tool for analyzing the flow of capital between index groups. Groups include bitcoin, stablecoins, altcoins, fiat currencies and more.

Market Stat | Resonance

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Learn objective market analysis with experienced mentors. By passing the course with one of Resonance's trusted authors, you can dive even deeper into the learning material.

Mentorship | Resonance

Paid features from Resonance open up additional opportunities for analyzing financial markets. Choose a plan that suits your trading strategy and analyze objective market information.

Plans | Resonance

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Privacy Policy | Resonance

Analysis of supply and demand volumes using a cluster chart. You will get access to aggregated data on 10,000 trading pairs from 15 largest exchanges

RТТ Chart | Resonance

A tool for finding anomalies on assets. Speeds up the search for profitable assets by up to 16 times. Pump finder. Allows you to sort assets by bitcoin price changes, market trading volumes, market capitalization.

Screener | Resonance

Cluster chart, interactive education and a community of professional traders on the web service for traders and investors – Resonance.

Resonance | Analysis of financial markets

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Notes

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Customize the appearance and grouping of data in the cluster chart

Chart settings

Take interactive lessons to learn how to analyze volumes

Course

You can start onboarding again by activating it in your account at any time.

Here you can learn about all the tool settings and parameters. Helps are available in each window

Helps

Turn the common axis mode on or off to see the change of each line on the chart

Axis

Change the data type, timeframe and filter the asset table

Chart customization

Tool for searching and analyzing delta by volume and quantity, evaluation of balances of indexes and individual tickers

Market Delta

Analyze all ticker groups together or individually by switching tabs

Ticker groups

Click on the name of a ticker in the table and add its indicators to the general chart

Selecting tickers

Analyze the total volume of transactions relative to the average balance (blue line)

Graph of the ratio of volume to average balance

Click the button and study the balance per individual assets in the Market Delta tool

Go to Market Delta

Select data type, timeframe and range displayed on the chart

Block of chart settings

Shows what prevails on the market: buying or selling

The delta histogram and the average balance chart

Compare volumes of all index groups represented on the platform

Volume comparison chart

Hover your mouse over the graph and get a numeric indication of the selected volume on the chart

Volume index

Switch the graph type to evaluate all types of data: volume, delta by volume, and number of trades and their delta

Chart type

A tool for fast evaluation of large amounts of data. Speeds up asset search by up to 16 times

Screener

Select tickers and exchanges and sort them by different parameters

Filtering and sorting

Change the number of graphs on the screen. Grid selection speeds up the asset selection process

Grid

Click Search and download graphs using the filters you choose

Search

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Let's start Market Delta?

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Hover your cursor over the cluster or histogram and get information about volumes

Tooltip

Save your analytical ideas in notes. Manage your notes in your personal account

Choose the windows and tools that will be displayed on the screen

Window settings

In the pairs tree, select an exchange, ticker and pair to open them on the cluster chart

Nobody is gonna hit as hard as life, but it ain’t how hard you can hit. It’s how hard you can get hit and keep moving forward. It’s how much you can take, and keep moving forward. That’s how winning is done.

Every day in this classroom, we learn things far more important than anything written in the textbooks. I teach you, and you teach me, and together we learn to love learning

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