An update is something that was on my mind today and what I want to talk to you about in this crypto space is specifically going off price action and not just indicators alone. One thing that I've learned – and I wanted to talk to you guys about in this space – is Bitcoin or any of these crypto currencies on the one day. Chart can get so over extreme to both the upside and the downside. We'Ve seen bitcoins RSI before at 8. On the one day chart which is just absurd guys, because, obviously in terms of technical books, anything under 30 is gon na, be that oversold conditions and we've seen it down around 6 8 before on the one day chart. So things can get extremely negative to the downside and we can also see it before, where we've been up in the 90s on the one day for Bitcoin and that RSI just keeps chugging. So what I want to bring to you today is to specifically look especially in this space, that we're in the cryptocurrency space, really look at price action and watch those candles and pay a lot of attention to support and resistance. Do I use the RSI and these indicators I do but that's a secondary that's, probably fourth on my list before I go through trend lines, support and resistance, candlesticks volume, what are the candlesticks doing, it's, support and resistance or their reversal patterns taking place that's the stuff? I like to pay attention to when I first got into this space, if I saw anything say I'm in a trade, and I see the RSI get up to 70, I would sell out because I knew we were getting in – that overbought territory.
I'D. Take my profit and now what I've learned is to be more patient and to use those trailing stop losses behind, as the price continues to go up, give it enough room and just slowly chase it up as the price is moving and then, if the price comes Down and gets topped out, it is what it is and when you talk about stop loss is what you have to realize. There'S gon na be times when you get whipped out guys it's happened to me, it's, frustrating you'll, get whipped out and the price will go. The other way, but you have to look at stop losses as basically an insurance policy, the insurance policy of a 24 hour market. When you go to bed at night, you don't know what the people in Japan or age or whatever gon na, do while you're sleeping it during the night time, and it basically just gives you that reassurance of you're not gon na lose 50 percent of you. You know what you've done or your account 50 percent of your account in the matter of one night, which we've seen Bitcoin before it can go up to thousand dollars in the matter of a our. It can go down 2000 in the matter of an hour, so give it 24 hours. It can do anything and that's where you always want to protect yourself. Capital preservation is the number one thing in this space and, like I've, talked to you before and some of my other videos.
What you have to do. You have to think about capital like soldiers, you send your soldiers out into battle and what you want to do. You want to retain all the soldiers that you have and capture more and bring them back in and now you have a bigger fleet, then you continue to do that. Are there times, you're gon na have casualties or you're gon na lose a little bit of money. Like I said, with the stop losses, absolutely that's the name of the game, that's the insurance policy, because you want to protect yourself, so you don't have one of those catastrophic failures. But capital preservation is the key. When you see great profit staring you in the face, guys and it's gone straight up like this for the last few days, you know that's the time to use those trailing, stop losses and lock in that profit. When I first got into this space like I said it was in early 2017, I think April or May I got in the litecoin, it was about 35 or 40 dollars. I was a part of that huge spike all the way up and at the time I had never traded anything before in terms of charts or stock, or anything like that. I heard about litecoin. I thought it could be a good investment want to get in wanting to hold it, but what happened was I held through that whole parabolic cycle and then once we started to get on that backside there and I was reading more about how to take profits and Do all this stuff, then I started taking my profits and I'm thankful.
I got in when I got in because I know there's some people who were buying at the very top of that and then they've huddled and held all the way through that bear market for over two years now guys and that's what you don't want to do. You do not want to huddle through a bear market if you're in an uptrend and we're in a bull market, hata lynx fine and buy more on the dips. But you don't want to buy the dips when we're in that downtrend, because price is gon na continue down and that's, where you draw that trend line and have an active resistance for you and you'll see a lot of times. You'Ll, have those reactions back up to it and then it will fall back down. Reaction fall back down that's, where you're having lower highs and lower lows. So you want to huddle when you're in those up trends that's the time but always use those trailing, stop losses. Guys that's the best thing that I can tell you, because in terms of unrealized profits, I saw it go all the way up and then I saw it start crash back down and I should have taken my profits and I want you all to learn from that. As we start, this next we're in that short term, moving to intermediate term bull market and we're, trying to get it into that longer term, bull market, but always go off price action.
First that's. The number one thing I can tell you don't just buy something because the RSI is at 10 and you're, saying oh it's, extremely oversold. Wait for that recovery to start again, so you start building some strength and then hop in and play that reaction. That'S. What I like to do at least, but you know guys there's just so many things that I've learned over the last two years and you know I'm grateful that I learned all these things and you know looking back now, yeah could I've taken a lot better profit. Absolutely, but because of that situation, I've learned so much more and now I have that experience I've been through a full bull market and crypto I've been through a full bear market in crypto, and now I have that experience and I want to share it with you Guys so if you get something from these videos like subscribe, hit that notification bell – god bless each and every one of you I got to get to my next client. Here we got about 8 inches of snow out here, so I got to leave a little bit earlier than I typically would in between clients, but look for another video today, guys I might do on an X, RP or LTC or potentially Bitcoin, all three of them. Together, so keep an eye out for that I'm gon na try to get to it. If I can, god bless you all like subscribe hit.