Altcoin Trader: Cryptocurrency exchange performance

Published: by Mike A

Cryptocurrency exchange tidal indicators

One of the most important things an altcoin trader must know is when to trade. Cryptocurrency exchanges do not inform when to trade altcoin -- but here's how!

Project Eagle refers to good and poor altcoin trading times as "the tide's in", "the tide's out", and "the tide's changing". It's our measure of a particular cryptocurrency exchange's current performance -- and that exchange's potential to provide a day trading profit.

You want to do altcoin trading, but is it a good time or not? Should you? Shouldn't you?

Project Eagle's tidal news provides a powerful tool for the cryptocurrency trader's toolbox. It shoud help increase profits -- and reduce dangerous trading.

When is a good time to trade on a cryptocurrency exchange?

A cryptocurrency exchange may have many traders online, but that doesn't mean they're in a trading frenzy. An exchange may have few traders online, but that doesn't mean they're disinterested. What are trading bots up to right now? Are huge international finance houses momentarily pumping prices by sucking up altcoins for long term investment, leaving you with a sudden price drop when they're done? Or are big traders divesting themselves of low quality or dangerous altcoins, and suddenly crashing your spot trades?

To the uninformed or reckless, spot trading can cost fortunes. Identifying exchange tidal patterns encourages altcoin traders to avoid periods of peak danger.

Project Eagle has a simple way of representing otherwise difficult to obtain cryptocurrency exchange trading conditions. In the Alts Club Altcoin Trader, if there are lots of best performer coin tables displaying "greens", then the tide's in. Trading should be good. My own trades have on occasion gained about 25% in less than 15 minutes at these times. Conversely, when few tables display, the tide's out. There's poor potential for a decent catch: best go smell the roses (enjoy life)!

As you discover high and low altcoin trading tides, you'll waste less time watching computer screens, waiting and baiting yourself into poor trades. You will gradually get to know how tidal activity reveals periods in the day or week that are especially profitable or dangerous, either generally or for particular coin pairs.

Cryptocurrency exchange tidal activity

A typical "tide's in" display will look like…

Cryptocurrency trading tables for high exchange trading
Figure 1: Tide's in: Cryptocurrency trading tables when exchange trading is high

In particular, notice lots of green flags and green price/bids. Green flags display when significant trading signals suggest good trades and low risk of sudden reversal. Watch those price/bid/volume percentages too. They represent recent activity, with >1% increase being very good (remember, the ticker operates about every 5 seconds). 7 of the 13 top performers in Figure 1 display an increasing price/bid percentage above 1%. That's positive trading activity!

In contrast, notice when the tide's out…

Cryptocurrency trading tables for low exchange trading
Figure 2: Tide's out: Cryptocurrency trading tables when exchange trading is low

Few cryptocurrency pairs -- and they're the top performers! Obviously, altcoin traders are not inclined to trade. Sometimes there are no tables to display! It couldn't be more simple, could it? That simplicity hides the fact that we cannot find this valuable information elsewhere because it takes substantial analysis to reveal when the tide's out.

Notice the green flag on BTC_BTS, with starting green price/bid and high Txs indicators. A trader viewing cryptocurrency exchange candlesticks could believe this represents a brewing opportunity. Whilst possibly true, the trader would not see from candlesticks that limited trading suggests poor profit opportunity, a stagnant price, and potential for the market being weak due to potentially bad news -- with a following crash.

Would you prefer a strong trade or a potentially dangerous one?

What about changing tides?

Observe Alts Club Altcoin Trader Figure 3…

Cryptocurrency trading tables during tidal change
Figure 3: Tide's out: Cryptocurrency trading tables during tidal change

Although twelve cryptocurrency tables appear, all have poor indicators. Remember, of about 90 cryptocurrency pairs on the exchange referred to in this example, Poloniex exchange, analysis only resulted in 12 tables. They were the top altcoin performers when this screenshot was taken. The rest were potentially dangerous.

For example, the green flag would normally indicate a good trade. It's because, overall, trading signals are high. However, the green flag on BTC_LTC has no support from increasing percentages on price/bid or volume. In this case, background analysis proved that although signals were good, overall standard deviation statistics were balanced by danger signals on price and volume. See that low 0.2% rise? It indicates market hesitation (but check exchange candlesticks: if it's a persistent rise it could be a good investment). This type of scenario happens too fast for human minds to catch by observing exchange candlestick data, but to the careful trader can warn of imminent rises long before bots based on traditional money markets. The example exposes a critical point: altcoin markets are vastly different from money markets -- it's a fool who relies solely upon traditional money market analysis tools.

Notice overall Figure 3 display is grey/red. There's nothing worth trading yet. Those few green bars indicate a tide about to come in -- watch for change! (By the way: we hope to provide audible trading alerts -- very soon, to diminish time spent watching for the tide to come in.)

So, when to trade altcoins?

My good trades come from 15+ tables, at least 7 with green flags AND green price/bid + volume indicators. Then I know two things: 1) trading is high, and 2) trading is volatile. That's the time to substantially increase an altcoin trading portfolio!

30+ tables displays high volatility and opportunity. Many top performers tend to show worldwide market circumstances leading towards major events like the introduction of Segwit (segregated witness) to BTC or potential for a Bitcoin fork, like that rumoured on or after 1st August 2017.

In addition to knowing altcoin exchange tidal activity, I strongly suggest becoming deeply familiar with how Alts Club trading tables work. For now though, you have a far higher probability of increasing your portfolio by trading when the the tide's in!

Conclusion

Project Eagle provides methods for simply identifying when it's worth trading. That is, when the Altcoin Trader best altcoins page displays lots of tables with green bars and flags. Knowledge of tidal activity provides an advantage to altcoin traders, and especially the advantage of knowing when not to trade. Altcoin traders no longer need to waste time when there's little prospect of profitable spot trading.

Happy Altcoin Trading!

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