Cryptocurrency Scanner in practice — How to use Big prints cryptoscanner

2년 전

 Strategies that use Big print

How  to use the Big print scanner during trading and increase your profits  thanks to Cryptoscanner tools? Observing large transactions (big prints)  carried out on cryptocurrencies is extremely important for me. I use  identical assumptions for the stock exchange. After all, in every market  we have similar principles of using tools, and also the same motives  that guide people who trade/invest. Today I will focus on explaining how  to use the “Big print” scanner window when trading on cryptocurrencies. 

 What matters?

Let  us evaluate the situation in the simplest way. You follow the quotes of  a specific cryptocurrency. Are you interested in the level on which  small traders open a position? The traders who statistically lose on the  market?Do  orders of, e.g. a fraction of ETH or a few pieces make an impression on  you? I don’t think so. What is your reaction when you find out that  someone has opened a position of, e.g. 500 ETH or 500 BTC? It is  probably “WOW”. Someone has opened such a large order, so he must know  more than you. In many cases this is how it is. Remember that in every  market, big traders or investors do not like losing.Their decision to open a position does not result from:

  1. Boredom on the market,
  2. The need to have anything in an open position, or
  3. The call of others.

 Of course,  the big traders sometimes lose. You must also keep this in mind if you  follow bigger traders when you trade. They can trade for a longer period  (midterm or longterm). Therefore, consider the assumptions of stop  loss. Position management must always be considered.

I  don’t think you want to be in a losing group. This is why, in your  trading, you should include observations of large orders that have been  completed. Due to the fact that you are not able to analyze this  manually, our Cryptoscanner is the right solution for you.

How do I use the Cryptoscanner window — Big print

First  of all, I am interested in orders that deviate significantly from the  norm on a given cryptocurrency pair. If I see orders in the transaction  window, like the ones below: 


 Nothing  attracts my attention. It’s just a simple transactions between traders,  more often than not smaller ones, and usually at price levels that are  not of interest to me.

The situation changes when there is a stronger move (up or down) or when we have some consolidation. 



Suddenly, orders of $100–150k appear among smaller orders. Therefore,  from larger traders who risk different amounts. It is important at this  point to assess during which movement on a given cryptocurrency large  transactions occur, and also on what side these transactions are set. 


 The above-mentioned large transactions took place during a decline,  which we can see in the above chart. The orders that significantly stand  out from the norm, and appear during each short raise of price, prove  that the downtrend move can be continued. 

Lanuch our Demo version: https://demo.algory.io

Big prints can be used while trading a few different strategies 

 Big prints  should be analyzed with regards to how we use the information that comes  from the size of transactions on the market. I personally consider  large transactions in three different situations, thanks to which I know  how to use the above information. Remember that this information does  not always provide us with support of when to open a position. This  information is very often also used to make a decision of closing the  position you own.

If  the following situations are on poor volumes, I stand aside. What does  poor volume mean: it is volume that has not deviated from the average  volume in the past minutes, hours or days. 


 Big prints create a “significant volume” that you can easily recognize  on the chart, due to it standing out from the norm. As you can see in  the chart, it is the level of trend reversal or the local extrema. The  following strategies best suit me in terms of an hourly interval.  However, you can also use them at lower intervals if you aim at other  ranges of movements. For example, I used it at a 1-minute interval. In  the same way, you can transfer it for 1-hour or longer intervals. It all  depends on what strategy you will adopt. 


 Trading on declines

When  the first major red candle (1) appears, which occurs with large big  prints, it is a good time to trade on declines. We are waiting for a  pullback (2). It usually reaches the area of an breakdown (1). These  regions become the level of resistance. From here you can take a short  position with low risk, to which you can add when there is a rebound in  the slump from level (1).

According  to the situation presented below, analyze different intervals for e.g.  BTC/USD, and then you can see how often you can trade on this strategy.  The “big print” scanner will help you find good moments for pullbacks. 


 Trading on spike up

As  with trading on declines, we trade the opposite way. When the first  major green candle appears (1), which occurs with big prints, there is a  good situation to trade on . We are waiting for a pullback (2). It  usually reaches the area of breakout (1). These regions become the level  of support. From here you can open a long position with a small risk,  to which you can add when there is a high rebound from level (1).

According  to the situation presented below, analyze different intervals for e.g.  BTC/USD, and then you can see how often you can trade a certain system.  The “big print” scanner will help you find good moments for pullbacks. 




 After a spike up or spike down

I  recommend this strategy for people who have both experience and a feel  for the market. Basically, one is related to the other. This is a  trading based purely on human emotions and is focused on a quick rebound  from a local bottom or top. 

 The  cryptocurrency market, especially the holding of positions, has brought  very large profits to many people. However, holding a position is not  tantamount to the fact that such people are good traders.

Very  often, instead of making profits and enjoying the money they earn,  people try to trade with big capital. Big prints usually appear on the  local extremum. We can observe a significant increase in the volume on  it, as well as a specific layout on the candle chart. Observe the  quotation window during very strong declines. Why? Because thanks to  this, you will notice how often at the end of a strong decline very  large orders in sales occur, which are then quickly filled and result in  a dynamic rebound. 



 These  large orders are usually orders of traders who do not have a special  trading strategy behind them, and therefore they did not close the  position when it was necessary to do it in order to only suffer a small  loss. They closed the position due to panic, thinking: “I will close the  position so that at least something remains of it”. I would not want  you to see the last strategy as a manifestation of pride and superiority  over anyone else. However, the sad realities of the crypto market are  that experience, calculation and the proper management of a position, as  well as one’s own emotions, count in trading.

Summarizing 

Big prints  are not a strategy itself. It does not work in such a way that a large  order appears in the trend and you already know that you have to open a  long or short position. It is a very good addition in the process of  making decisions about the opening/closing of your position. It is also a  good indicator of when it is worth being out of the market and waiting  for interest from bigger traders.

You can check “Big prints” scanner window on: https://algory.demo.io 

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