Henry Gray

#Educational | Gm, let me share something useful for once😉. You might want to bookmark this for future reference! Question: Should you use indicators in your (technical) analysis? And if so, which ones? 📚When I started out with Technical Analysis I heavily relied on technical indicators and all sort of theories. I learned and practiced all I would come across, even W.D Gann! 📈Then I got this realization that only Price Action matters. I learned all there was to know about market structure, liquidity, demand and supply theory. 📊As I matured in my analysis and researched I integrated On chain metrics. Specifically during the end stages of the bearmarket in 2022. Not only would On Chain metrics proof to be helpful, but also fundamental analysis would help me pick the right assets. Now, which one is superior to the others? The answer is none, but they all serve a specific goal. 🔑Integrating different kinds of information that compliment each other without over analyzing a chart or asset is key. By the way overanalyzing can lead to analysis paralysis. Having said all of the above, here is a list of what I use or have used(This list is not limited): Analysis on Fundamentals: - Narrative - Which solution to which problem - Team - Partners - Roadmap - Tokenomics - Community - Investors Analysis on On Chain Metrics: - Level of Adoption - Developers activity - Market cap vs FDV - Nakamoto coefficient - Revenue - Fees - TVL - Money flow - Adress activity - BTC Miner analysis Analysis on Price Action: - Market Structure - Liquidity - Supply and Demand - Candlesticks - Moving Averages - RSI - Volume That's a long list 'innit. Well no one said it's easy to pick the right assets at the right time. (Probably missed a few metrics since I dont keep a list. This is done from memory.) Two disclaimer: 1. If one category of analysis checks all the boxes it does not mean that the asset will perform right away, or even at all or ever... 2. If you are trading on low timeframes I would not bother with FA and On chain metrics. That's why it's good to integrate different types of analysis to find confirmation. A few examples of how 1 sets of metrics does not equate good performance right away or for very long: $XRD has a high level op developers activity, doxxed team, great community but price is underwhelming. It yet needs to be adopted by the masses. Shifting their focus to institutional capital they hope to achieve this. On chain metrics for $ROSE shows a high degree of whale accumulation. It also has a large and loyal community, but the chain fails to be adopted. Only a few projects are launched on Oasis and the Illuminex Dex has shifted to Ethereum because adoption was lacking. Price is currently also underwhelming. Chains like Aptos and Sui have a lot of hype, large communities, big investors and price going parabolic due to pumpamentals making it perfect to trade $SUI and $APT. However although adoption is increasing, dApps are being built and users onboarding, price still returned to range lows for both native tokens. There are many different ways to find the perfect assets and the perfect time. Let me know yours! I can only share my experience on how I chose my assets as a swing trader on higher time frames: 1⃣ During the bearmarket I used a lot of on chain metrics on $BTC to spot a potential bottom. 2⃣ At the same time researching tokens on chain as well as fundamentally was helpful to find solid projects that could potentially onboard mass retail while attracting institutional capital. 3⃣ Using different kinds of technical analysis allowed me to get in many bids at bearmarket bottoms or close to them. In conclusion: 👉Some analysis is used to find the right assets. 👉Some analysis is used to find the right timing. 👉All indicators can proof to be helpfull if you know what they are actually indicating(!) 👉Integrating different types of analysis and indicators gives you an edge. May the profits be with you fam!