How to find new plays
There are many ways to go about finding new play ideas, and here are a few to get you started. The most important thing however is for you to find the method that works for you, as there are many ways to approach trading and even finding plays to trade/invest.
One simple method is to go to www.binance.com Binance is one of the most active exchanges and where a lot of the alt-coin volume is traded. You can play around with the % gain/loss and most volume tabs to find interesting plays. The more volume the better, as a strong general rule.
Another option is to go to Coinmarket Cap (http://www.coinmarketcap.com)
From here you can scroll down the list of 7-day charts at the right and see if any of them jump out at you as interesting. Look for down-trending charts that have suddenly started to move back up or even go sideways, for example.
Also on Coinmarketcap, you can also search a different way, by clicking on “trending”, then “gainers and losers”. By looking at the most active as well as biggest winners and losers you will often find some good trade ideas.
Another more traditional option would be to have a watch-list and just scan through it manually, one play at at time (this is the method I use the most personally)
The most common charting site for crypto is www.tradingview.com. This is a very good site in general for charting, so I highly recommend you check it out.
Below is a sample watch list from TradingView. Once I have a specific time frame I want to scan on (For example 4 hour) I just hit the down arrow on the keyboard and slowly scroll through each chart and look at the setups.
Focus on the same plays so you learn them over time
One thing I talk about a lot is focusing on the same plays over time so you can learn them well. Generally speaking it is a good idea to focus on 10-15 plays and study those charts closely, that way when something happens you are able to read the signal correctly developed a good “instinct” for that chart.
Average daily volume
One very common measure of liquidity, action and general health of a coin/token/stock is to compare the 24 hour volume to its average volume. Many times on the biggest moves you will see volume 2x the daily average.
In the below example, at www.coinmarketcap.com by clicking on a coin/token and then historical data you can see the overall trend in volume and potentially note and changes to this trend which may offer you a signal.
Most volume at top and bottom
A general principle in trading is that you will find the most volume at the top and the bottom. Why is that?
When you are near the peak of a run or bottoming out there is a battle between bears and bulls, and that volume sets the tone for the next leg of the chart. With strong volume comes strong signals and often strong support or resistance levels being set.
Types of volume: Red vs Green
Not all volume is created equally, and it is important to study the volume candles to try and determine who is in control, bulls or bears. The below example shows large bear volume which would normally indicate a bottom, but afterwards there is a lack of push back by bulls to confirm this bottom.
After a strong green candle you want to watch for a follow-up candle to see if the bulls are still in control or starting to re-think their position. In the below example there was decent bull follow through and very little bear volume, a good sign of potential continuation.
In the below example we had a nice measured move up on light volume, and an early warning sign with that hanging man candle. The following candles had massive sell volume and were a good clue that the trend had reversed.
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