Here is a quick quiz. Below are ae two charts with both the name and price scale removed – the first is weekly, the second is daily. What is the predominant trend of both?
If you were able to glance at both charts and recognise that they were both timeframes showing a downtrend then take the rest of the week off. The reason I pose this rather simplistic quiz is because of something I saw on YouTube where two people spent an hour discussing the current trend in BTC. WTF they could talk about for an hour is beyond me as both time frames are clearly bearish therefore the only trades you would be looking for at present are short trades. My guess is that they spent the hour trying to generate a narrative that convinced them and their viewers that the current trend is actually up.
However, instances like this do highlight the troubling issue of traders trading what they want to see not what they actually see. It is very easy to generate a narrative that fits your existing worldview. It is much more comfortable to believe that the data protects your ego rather than confronts it But trading was never meant to be comfortable nor good for the ego.
PS: Personal disclaimer – I am currently short crypto but tomorrow I may be long crypto. It simply depends upon what I am being told not what I am trying to tell myself.
