TST NEWSLETTER – 23/05/2021
Snake's & Ladder's In The Crypto Space
- Snake's & Ladder's In The Crypto Space
- Last Week In The Forex Markets
- Top 3 Pairs For Next Week
- TST Affiliate Program
Snake's & Ladder's In The Crypto Space
Cryptocurrencies have been on the agenda for our articles time and time again just for being such an up and coming, dramatic, and interesting space to cover.
This week it would be no surprise that we are covering the current 'pullback' of the entire crypto markets, but is this just a pullback or something much more detrimental? Let's take a look.
Many are referencing this current market condition as 'The Great Fall', this comes shortly after Elon Musk tweeted and slated Bitcoin for being too much of an impact on environmental concerns, we covered some of that story in last weeks newsletter, which if you haven't read, you should certainly check out.
Following the news from Elon Musk, China has come forward and are now looking to severely crackdown on the use of cryptocurrency in their economy and infrastructure. We also briefly covered last week how China is the most dominant holder of the coin and has the highest hash rate (computing power) on the network, accounting for the mining.
China's concerns behind the anonymous trace of Bitcoin has been growing more and more since the release of the coin, with the warning that even financial institutions couldn't take the form of payments.
Currently, as of writing, this article Bitcoin (BTC) is down 20.90% since last week, with Ethereum being down 37.79%, and XRP is down 41.05%.
We have seen over the last week several hundred billion in liquidity leave the crypto markets.
So is this the end time of crypto currency?
Well lets take a look at the history of Bitcoin.
What we are able to see is that this (so far) has not been the largest pullback for the coin since its humble beginnings.
Many events beforehand have created hurdles for Bitcoin to jump over, from hacking scandals to government pressures.
The only growing concern with the state of the crypto space is the world economies looking at the industry under a microscope as a 'risky' investment, disruption to their fiat currency, and used for criminal acts, this could put the space under a lot of pressure to keep afloat.
We may see regulators crack down on the industry and take to the battle stations against Bitcoin.
We have also seen how volatile this coin can be it half the time to hit its crazy highs it plummeted down over 50%, due to a tweet that a billionaire had shared…. now I don't think we would see this happen with the likes of a well-established index fund like the SPX500, but it does bring the question.
What is Bitcoin running on? Popularity? Or is there a legitimate use case in the real world?
Well, only the future will hold the answers to this unfamiliar situation but the true power is left with regulators and governing boards worldwide.
For Those Holding Crypto
Now if any of you are holding cryptocurrency, I hope you are one of the early adopters and did not buy at the top.
For the early adopter, just ride this one out we have come a long way, holding is in our nature by this point.
For those who got in near the top, ask yourself 'Is this money I am willing to lose'
If you can accept it going to $0 then by all means hold your position.
In the event that you can not wait for it to rise again then you may want to look to move your investment to a stable coin or even to your account balance and sit on your hands for the next move.
Again take what has been said with a pinch of salt and don't act with impulse in the crypto markets, they will humble you very quickly.
Last Week In The Forex Markets
Not a bad week in the forex markets this week, we saw some larger plays on the dollar towards the end of the week
Lets take a look at some of the trades we took here at TST.
Here on EURUSD we where looking at a rising wedge on the higher timeframe.
We can see that price came up took us out of the structure, here is where we decided to trade this pair based on price action
Naturally, we identified the order block which caused the first break of low, this gave us our entry point.
We saw the commitment push us in our desired direction, we then had identified another order block that caused the second break of low, we executed a position of this.
In total we closed both trades for a little over 1% in profit.
USDCHF was called out to our Pro Members last week.
We took this trade on the 5m chart, which is a little riskier for the way we like to trade but here we adapted to the situation and executed it effortlessly.
As we can see that price action pushed higher breaking the previous high.
Naturally, we looked for the cause being the order block, here we took the setup on the 50% Fibonacci retracement.
This setup is currently running +4.7% with stop losses at break even.
Here is a great setup we have been waiting patiently for on USDCAD.
We had the break of high occur, which then lead price action to fall in somewhat of wedge pattern.
We identified the order block which caused the break of high, which lead us to take this setup on the 50% Fib retracement.
This is running +7% with stop loss at break even.
Top 3 Pairs For Next Week
GBPJPY: [Long to Short]
Every Saturday we send a 'Market Breakdown' to our Pro Members.
This week we have some super high quality setups to share with you guys.
To kick us off we have GBPJPY long to shorts, this setup looks especially good as we have a larger ascending channel in play.
We have used a pattern within a pattern to show this clearer.
We can make an educated guess that the price has to come back down to mitigate the order block which caused the break of high, thus creating a second tap of the smaller ascending channel, which should be tradeable.
Then we can expect to see price react off this area and push us up to the top of the structure. Thus giving us a short position we can take from the top of the structure if price action is in our favour.
USDCAD: [Short to Long]
Next week is looking great for most pairs across the board, here we are looking at a short position into a long on USDCAD.
Looking at price action we can see that price has been pushing lower, creating a descending channel.
We are expecting price action to continue pushing lower (maybe offering a short to be taken), but our main focus is on the long position which could come into play later next week.
Here we will be wanting to see a real slow down in price action, giving us confluences that price may be looking to reverse here.
GBPUSD: [Long to Short]
Finally for our outlook for next week, we are looking at GBPUSD.
This pair was highlighted in our market break down for Pro Members.
Here we have used pattern separation to identify the direction.
We can see that price is trickling down for a third touch, here we may see a opportunity presenting itself in the way of a order block.
But the real high quality setup is the short position on the cards heading into later next week.
We will want to see a real nice slow down in price action, leading us to the top of structure, grabbing that final liquidity before changing trend.
The Social Traders Affiliate Programme
Looking a little closer to home, we thought it would be fitting to show you guys our affiliate program we have introduced for The Social Traders Course.
We are giving all affiliates a competitive and fair commission for people they bring into the community.
Family, friends, your girlfriend, or boyfriend? Anyone looking to learn a skill set for life, or potentially a skill set to change their future, then this will allow you to make some extra cash each month for doing what you love and to introduce more people to our ever-growing community.
With consistent updates and new content being made we really want to offer our community the best.
£34.99 Package – 33% recurring for every month the client stays subscribed.
£24.99 Package – 33% recurring for every month the client stays subscribed.
£500 Trading Account – £150 – Client must complete at least 15 live trades. Net 30
£1000 Trading Account – £225 – Client must complete at least 15 live trades. Net 30
£3000 Trading Account – £300 – Client must complete at least 15 live trades. Net 30
Want to learn exactly how we trade the markets?
Why not check out our ‘pro package’? You will gain access to our in-depth course as well as many more features – www.thesocialtraders.com
Looking for a reliable broker with raw spread accounts and 1:500 leverage? Try our partnered broker – https://www.axitrader.com/uk/live-account?token=IDUZ-LFrugU5oKniM-HhFmNd7ZgqdRLk&affid=7138
We thank you for reading this week's addition to the TST Newsletter, have a great trading week, and stay consistent. – 'The Social Traders Team'
Written by – Karl Milward