Market-Mover Signals, Coin-Specific Signals, and Chain-Specific Signals, Oh My!
I prefer Market Movers personally, here is why.
I prefer Market Movers personally, here is why.
First off, what is the difference?
Coin-Specific Signals
A Coin-specific signal is exactly what the name indicates.
It is a signal for a specific coin, usually based on analysis of price movement specific to that coin, or news and updates related to the coin and it’s adoption, popularity, media buzz, etc. This signal does not consider the rest of the market or other coins, unless there is a reason for another coins impact to the specific coin (Such as with tokens in the ETH blockchain).
Pros: Coin-specific signals can create better chances of making huge gains if you put enough money into position at the right time.
This kind of signal is a surgical knife, not a broad paddle.
Cons: Because the signal is not reacting to the macro market, if macro-market movement happens suddenly, you can loose big, especially if you bet your entire farm on a single specific-coin and the market decides, “not today sir, sorry”.
I tested a few specific signals this year, and while I was able to pull some small gains testing, ultimately I abandoned the specific signals, opting to search for a better source of Market-Mover Signals.
Market-Mover Signals
A Market-mover signal is about the entire market, it’s liquidity, news and events/buzz related to things that can push either BTC directly, or have an effect on the entire ecosystem. This kind of signal applies to all coins because of the way liquidity of BTC, ETH, etc, impacts the overall money in/out of the system, and all coins are thus effected.
Up until earlier this year, I was doing some whale-watching thanks to a notification stream I received from a mobile app. This signal was very effective for a while, but then something changed and now I am looking for something similar to replace it. I would consider this another type of Market-mover, because I was watching a stream of short / long positions open or close, and using the overall trend to predict movement.
You could also use whale-watching to predict movement on single coins, if you are looking at Short or Long positions opened for a specific coin, and use that to inform your choices.
Crypto Whale Watching; Trading Signals — Futures Price Notifications
A curious phenomena I’ve noticed….
Pros: Market-mover signals better predict when you should enter and exit ANY coin that is likely to be impacted by a shift that creates market speculation positive, or negative. They have proven great for helping me alter settings on the fly for the martingale trading bots I use.
This kind of signal is more of a broad paddle, not a surgical knife.
Cons: Market-movers will miss specific coins that skyrocket or dump independently of the macro-market movement.
^ It’s rare that a signal exists in human form, but there he is. One example of a Market-mover signal.
Trump getting into office, or Harris, are indeed major market movement signals.
Harris might have meant a bear-market condition, due to speculation of her impact on taxation and business, and the resulting sell off that may occur.
Market-mover signals that are based on news and current events are a bit more abstract and harder to predict than signals based on major economic decisions like reducing interest rates, or new countries adopting, or banning, cryptocurrency, exchanges, protocols, etc.
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When BTC and ETH-based ETFs were approved earlier this year, that development also contributed to the overall market upward trend in the last year, and anyone watching that news knew that this was a Market-mover signal.
Major institutional money flowing into Exchange-Traded Fund bundles that are accessible like common stock definitely moved the crypto market and it wasn’t terribly hard to predict that it would not only push the market upward, but that it might offer support for overall total market cap staying higher, instead of dipping as far as has been seen in previous years.
I prefer Market-movers, primarily because I use a style of automated trading that relies on a laddering buy in.
There is a third kind of signal…….
Chain-Specific Signals
A blockchain something unique to crypto world, and you might compare it to signals in stock/commodity world that aren’t based on the entire market, or a specific asset, but rather — the industry or sector of a market.
Like when AI stocks took off earlier this year.
Or when lithium stocks popped off after EV’s started penetrating the market.
When Ethereum enabled smart contracts and conditionals within the blockchain, enabling developers to launch their own tokens riding on the ETH blockchain — the addition of new and popular chains — would be a chain specific signal.
Anyone who was watching Ethereum when tokens first went live, was wise to buy a bunch of ETH. ETH price is supported and maintained by the amount of projects that are reliant on the ETH blockchain. And if a new project is built on Ethereum and gains a real-world use case, that goes to further support the overall ETH blockchain.
Why do I prefer Market-Movers?
Because my favorite type of trading bot for personal income is a Martingale.
When you understand how a Martingale operates, this makes sense.
Market signals help me determine when to re-configure my bots.
Coin-specific signals do nothing for me here, unless those signals are related to the coins I am running bots with. BTC, ETH, and LTC.
Market-mover signals clue me in if there is going to be an overall dip, or a bull run, so I need to widen my active spread.
Simple as that.
^ An example of a human coin-specific signal. Hint hint. Yes, I just bought some DOGE.
Disclaimer : This is not financial advice and I am not a financial advisor. This is just what I am doing with my own money. I am NOT an expert. I am some dude on the internet who sees a path sometimes, and takes it.
Thank you for reading!
Until next time….
Onward and Upward Everybody!
-Chris
A.I. Lifestyle
A few years ago I automated my primary online business to the point where it only takes me a few hours per week, and…www.youtube.com
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