Hey Clay, I want to get into crypto-trading, I want to get into cryptocurrency investing. I know you're all about technical analysis, but does technical analysis actually work with the cryptocurrency market? Let's talk about it. That's actually a super-good question, and a very popular one that I've been getting as cryptocurrencies continue to fill the headlines, and who knows, maybe a couple of years from the time I do this video, someone will go, what are you talking about cryptocurrencies, but I think they're here to stay. In what form, I don't know.
But let's get to the question here, and the question is, do charts work? So let's just talk about technical analysis, the use of charts. What actually is a chart? A chart boiled down to its simplest kind of common dominator is two things. You have down here, volume, meaning is there a market for it? Are people exchanging something? Something, I'm not saying stock, I'm not saying options, just something. Well let's run that test real quick. Are people exchanging something in the cryptocurrency market? Well yeah, they're exchanging currency, cryptocurrencies. So yeah, alright, check. The other big part of charting is over here, price. Or you could look at this as value. So again, let's run it through the test. Does that something that they're exchanging have a value, have a price associated with it? Well, in the cryptocurrency market, of course it does. I mean, a market by definition is gonna have prices and values. So once again, yeah, the crypto market not only has people exchanging something, but that something also has a price and value. So yeah, absolutely, absolutely charts can be used in the world of cryptocurrency. And I realize this is just theory on a whiteboard, and that's a totally fair point, so what I'm gonna do is take you to my desktop, and before I get to my desktop, I want you to watch a video chart analysis that I did on Ripple, one of the many cryptocurrencies out there. And these video charts, if you're not familiar, I do them on a daily basis, and I just talk about the basics, but the basics even in charts can be very, very powerful. I really harp on it in the video on my desktop, but I just want to get it across right now too, I'm not sitting here saying that charting is the secret sauce, that charting is the holy grail for cryptocurrency, and it turn you into a millionaire. I'm not saying that at all. Are they a very useful tool? Yes, 100% they are a useful tool. Are they always perfect, do they always work? No, of course, not but there is no such thing as a perfect system in the market. Like I said, I do reiterate that as I get onto the screen, but I want you to first, like I said, watch this video that I've done beforehand, and then I'm gonna take you to my desktop and walk you through what happened afterwords, and you're gonna see that, not only do technical analysis, not only do charts work with the crypto market, but they can actually work very well. So let's get to that video, and then I'll see you on my desktop. And sitting between these candlesticks here representing one day's worth of price action, which is what you would normally see, each one represents 30 minutes worth of time. So while this here may look like several day's worth of time, it's actually just today's price action broken down into 30-minute time slices. I look to this timeframe kind of does a good job of telling the quote unquote story of a price, and in this situation makes mapping out a very logical question quite straightforward.
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