Market Structure Monday #1
Today, we have the first Market Structure Monday Post. This will cover the Weekly, Daily, and 4HR market structure of the Total Crypto Market Cap and ETH/BTC.
Why these two charts? Focusing on where the market is going as a whole with the TOTAL chart will probably keep you in tune with most assets, as they are the constituents of the index. Focusing on the ETH/BTC ratio will let you know if you will make more gains trading just BTC or trading alts. There’s no point in trading an alt if you could have just bought BTC and had a better % gain.
The weekly structure is more geared towards long-term “investing” decisions. Structure levels can be evaluated for Dollar Cost Averaging positions. A change of the structure trend can be evaluated for profit taking or buying into a new trend.
The daily structure is more geared towards short to medium-term trading decisions. When the price approaches structure levels, it is time to look for continuation or reversal signals for trades. The market structure trend can serve as a trade direction bias. In structural uptrends, prioritize bullish trades, and in structural downtrends, prioritize intraday bearish trades.
The intraday structure is used the same as the daily structure but is geared towards the lower timeframe intraday trading. These two charts are taking me a bit longer to build out. I’ll try to get them in by next week.
I’ve posted on how I’m determining market structure before, but I’m not going to link back to that post. I feel it’s a bit confusing. I’ll make a new one soon.