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Dreadfully Informative Course for Crypto Beginners 2022 June

Module – II

Market Sentiments & Crypto Candles

Module 2 Insights

In this module, we will go through the following aspects of cryptocurrency.

  • Crypto Sentiments
  • Some Examples of Crypto Sentiments
  • Benefits of Crypto Sentiments
  • Crypto Sentiment Analysis
  • Importance of Market Sentiment Analysis
  • Sentiment Analysis Tools and Tips
  • Top 10 Marketing Sentiment Tools 2021
  • Candlestick Patterns
  • How to study Candlestick Patterns?
  • Some Famous Candlestick Patterns

For your convenience, we have divided this module into the following steps:

Step 1: Market Sentiments

Step 2: Market Sentiment Analysis

Step 3: Market Sentiment Analysis Tools & Indicators Step 4: Candlestick Patterns

Step 5: Top Candlestick Patterns Step 6: A Quick Quiz

Step – 1

Crypto Market Sentiments

What are Crypto Market Sentiments?

The overall attitude of investors toward the cryptocurrency market is known as crypto market sentiment. The general price trend might be influenced by market participants’ psychology. The cryptocurrency market’s supply and demand are driven by market sentiment, resulting in price volatility.

To speculate on the price swings of cryptocurrencies, market sentiment uses investors’ attitudes

and feelings toward an asset. When prices are rising, market mood is bullish, and when prices are falling, market sentiment is negative. To fine-tune their entry and exit positions, investors integrate market sentiment indicators with other analysis methodologies.

Basic Understanding

Because of short-term price changes caused by crypto market mood, technical analysts and day traders rely on market sentiment to sway their technical indicators. To maximize profits on investment, an investor must correctly track the general mood of market participants and act quickly on it.

The price of cryptocurrencies, like any other asset, is determined by the interaction between supply and demand. Crypto market sentiment, when combined with other analysis methodologies such as fundamental and technical analysis, can be a valuable addition to any crypto trader’s toolbox.

Optimistic market sentiments, on the other hand, do not always drive the market. A market with a strong and upbeat attitude can appear right before a retracement or a bear rally. Fundamentals do not necessarily determine investor attitude.

Do you remember doge coin bull run?

A social media effort propelled the Doge coin surge, producing in upbeat market mood. Most investors bought Doge because of strong social media buzz, rather than evaluating the

TOKENOMICS or objectives of the coin. A single tweet from a prominent player in the

cryptocurrency business, such as Elon Musk, can have a significant positive or negative impact on the market.

Advantages of Market Sentiments

Before starting a bitcoin trade, be sure you have all of the information you need. Mastering overall market sentiment is just as important as learning technical and fundamental analysis. The market analysis, for example, could assist decide whether FOMO (fear of missing out on a trade) is justified or just gut. When fundamental and technical analysis are combined with market sentiment analysis, a trader can:

  • Have a better understanding of short- and medium-term price changes.
  • When trading, keep your emotions under control.
  • Recognize price trends that could be profitable.

Market sentiment has a wide and powerful application in general price analysis. Many traders are already pulling insights from social media networks and using that information to make their

final trading decisions.

Step – 2

Market Sentiment Analysis

How to do Crypto Sentiment Analysis?

To get a sense of the market’s overall mood, you’ll need to gather information, opinions, and ideas. However, don’t solely rely on market sentiment. Before making a financial decision, it is best to combine all of the data. You may get a sense of the market’s underlying tone by looking at relevant social media pages and platforms to see how the general industry and traders feel about a particular digital asset. To connect directly with ecosystem members, you may need to join

Telegram channels, Reddit discussions, Discord, and all other official forums of a certain project. However, you should be on the lookout for scammers posing as project officials in these forums. Before forming any judgments, make sure you’ve done your homework.

Analyzing social media networks is only the beginning. You should also consider the following in addition to using social media pages:

  • Data collecting tools can be used to track social media mentions.
  • Popular cryptocurrency media sites and blogs, such as CoinDesk, CoinTelegraph, Cryptopolitan, The Block, and others, can keep you up to date on the newest industry news.
  • Keep an eye on the cryptocurrency industry’s whale activity. Monitor what huge bitcoin holders are doing in the market with tools like Whale Alert.
  • Use market sentiment indicators to figure out how the general public and investors feel. Fear and Greed indexes, for example, compile data from a variety of sources to summarize market sentiment.
  • Using Google trends, determine the level of buzz surrounding a crypto project. A large search traffic for ‘how to buy Bitcoin,’ for example, could indicate a bullish market mood for Bitcoin.

Why Market Sentiment Analysis is Important?

Many trading systems include market sentiment analysis as a key component. It’s usually a good idea to make decisions based on a combination of all available information, just as it is with technical or fundamental analysis.

Market sentiment analysis, for example, can assist you in determining whether FOMO is justified or merely a result of herd mentality. Using a combination of technical and fundamental analysis as well as market sentiment surveys, you can:

  • Gain a deeper understanding of price action in the short and medium term.
  • Become more in control of your emotions.
  • Look for opportunities that could be profitable.

Step – 3

Market Sentiment Analysis Tools & Indicators

Different Market Sentiment Tools & Indicators

Various market sentiment indicators can be used by crypto investors to determine if the market or a specific cryptocurrency is bullish or bearish. Market sentiment is represented graphically or on a scale via indicators. Remember that different indicators should be used to get a clearer picture of the market.

The majority of market sentiment indicators are focused on Bitcoin, however the Ethereum sentiment index is also available. The Bitcoin Crypto Fear and Greed Index is the most widely used sentiment indicator. By combining many sources and calculating them into a single figure bound on a scale of 0 to 100, the index seeks to evaluate the strength of prevalent emotions and overall sentiment in the Bitcoin market.

A number of 0 implies that market participants are experiencing severe fear, while a value of 100 suggests that the market is experiencing extreme greed. When the price is rapidly rising, the players may become greedy, causing FOMO among those on the sidelines and resulting in extra capital entering the market. Cryptocurrency investors, on the other hand, may be tempted to sell their holdings if the price is rapidly falling. The Bitcoin Crypto Fear and Greed Index tries to measure both extremes.

Top 10 Marketing Sentiment Tools 2021

To get started with sentiment analysis, you had to go through hundreds of comments, blogs, and survey responses back in the day. You can now automate the process and provide your team with the insights they need to meet their objectives by using one of the many sentiment analysis tools available. Your media monitoring project should include sentiment analysis as a standard

component.

1.  Talk Walker

The “Quick Search” feature of Talk Walker’s customer service platform is a sentiment analysis tool. This tool is great for social media because it can tell you how people feel about your

company’s social media profiles. Quick Search analyses your mentions, comments, engagements, and other data to provide your team a complete picture of how your consumers are reacting to your social media activities. This assists your team in developing and executing effective

campaigns that engage your target audience.

2.  Lexalytics

Lexalytics is a text-analysis tool that focuses on explaining why a consumer is reacting in a certain way to your business. It parses the content using natural language processing before

performing sentiment analysis to ascertain the customer’s purpose. Finally, Lexalytics brings the process to a close by collecting the data it has gathered into an easy-to-understand and shareable presentation. While most sentiment analysis solutions tell you how customers feel, Lexalytics sets themselves apart by explaining why they feel that way.

3.  Critical Mention

Critical Mention differs from the other choices on this list in that it examines news and other publications that mention your company. This way, you can observe how people feel about stories that are breaking all the time. Because news coverage is now available 24 hours a day, having software that can monitor the internet and notify you to any buzz your company is

creating is beneficial. Critical Mention can even notify you when articles on television are broadcast. You may effortlessly clip films to distribute with other employees by searching through video files for mentions of your company. If your company is mentioned favorably during a live broadcast, simply access the video section and post it on social media.

4.  Brand Watch

Brand watch’s “image insights” tool, which can detect photos connected with your business, is one of the best features. Assume you upload an image of your company’s logo. Brand watch

searches the internet for images using that logo. It then organizes the photographs into a list and emphasizes the locations where your company’s logo appears. Furthermore, Brand watch’s

features deliver fascinating insights about each image it discovers. This covers information such as the number of mentions, the total number of followers, and the most recent activity. Your team can observe where your brand’s images are showing and how well they’re doing with your target demographic with Brand watch.

5.  Social Mention

Social Mention is a free social media analysis tool that offers some of the best value for money. To begin, users are not required to create an account or download any software. Instead, simply go to their website and search for your phrase like you would with any other search engine.

When you input your search term, Social Mention gathers information about it from every social networking site and organizes it into a complete summary. This isn’t a rudimentary summary,

either. It can tell you things like the percentage of people who are positive about your keyword against those who are negative about it.

It can also tell you how famous your business is on social media and what percentage of people are likely to keep discussing your term. While you can’t fully evaluate specific bits of data, Social Mention is a great tool for folks who want a quick overview of their social media presence.

6.  Sentiment Analyzer

Sentiment Analyzer is a breeze to use. Simply go to their website, copy the text you wish to

examine, and paste it into the provided box. When you click “Analyze!” the website will analyze

your text and provide you with a “sentiment score.” While that may sound like magic, Sentiment Analyzer determines the sentiment behind your content using “computational linguistics and text mining.” It then adds up and compares the results to come up with an overall score. As a result, it’s an excellent tool for businesses trying to figure out what’s behind a customer’s perplexing

answer.

7.  MAXG

MAXG is a HubSpot connection that analyses your CRM’s customer data. It employs industry benchmarks to compare your firm’s data to that of others in your field, so you can see how your company stacks up against the competition. MAXG is capable of analyzing a wide range of quantitative and qualitative data, such as CTAs, blog posts, and emails. Its smart

recommendations tool will not only give you a clear picture of how customers are reading your content, but it will also make ideas for how you may boost engagement.

8.  Social Searcher

Social Searcher is a free sentiment analysis tool that comes with a social media monitoring platform. Simply type in a keyword, hashtag, or username, and Social Searcher will tell you whether the buzz surrounding that issue is positive or negative. It also divides data by social media platforms, allowing you to observe how your business is doing across various apps and channels.

9.  Rosetta

Rosetta is ideal for international companies because it can analyze text-based data in more than 30 languages. This means you won’t have to translate chats before uploading them, making the process both faster and more accurate. Because the majority of customers utilize slang or shorthand, third-party translation technologies may unwittingly affect the meaning of their

writing. Rosette’s method is designed to analyze content in the language in which it is written, ensuring that you don’t miss out on any important feedback, even if it is written informally.

10. Monkey Learn

Monkey Learn is a very customizable sentiment analysis tool. To indicate what material

corresponds to each tag, just add categorization tags and manually highlight different parts of the text. The software learns on its own over time and can now process numerous files at the same time.

Monkey Learn also offers a free “Word Cloud” tool to its users, which shows them which terms are used the most frequently within each classification tag. By looking for repeated mentions of specific products or services, this might assist firms in identifying typical client bottlenecks.

What is a Candlestick?

Step – 4

Candlestick Patterns

A candlestick represents the price movement of an asset over a specific time period. Traders can analyze different periods depending on whether they are making low or high timeframe judgments. The closing price was lower than the opening price, as indicated by a red flame.

When a candle turns green, it means the asset’s price has risen and closed above its opening price. As time passes, many candlesticks combine to form larger patterns, which crypto traders use to make crucial trading decisions.

Candlestick charts are preferred by cryptocurrency traders because they are simple to grasp and have a pleasing appearance. There are a few candlestick patterns that every cryptocurrency and Bitcoin trader should be aware of. Candlesticks can be traced back to rice traders in Japan. It has evolved significantly over time and has become an essential tool for most traders. This system has been used and updated over time, and it is today one of the most effective methods of asset graphing.

How to Read Candlestick Patterns?

Candlestick charts are used by traders to depict the price movement of an item. Candlesticks get their name from the long lines (wicks) and rectangular shapes they use to represent price movement over time. You may gather clues and insights from the price action as well as the overall mood of the market for that asset using candlesticks. As time passes, many candlesticks combine to form larger patterns, which crypto traders use to make crucial trading decisions.

Candlesticks can be a little tough to grasp at first. Even still, when compared to simple line charts, the more one analyses them, the more information they provide.

Red Candlestick

The closing price was lower than the opening price, as indicated by a red flame. In other words, during the stipulated trading period, the asset’s price declined. Assume that the red candle shown

above is a one-minute candle. This signifies that the price of an asset closed lower than it had opened one minute before.

Green Candlestick

When a candle turns green, it means the asset’s price has risen and closed above its opening price. Wicks simply show the difference between the opening/closing prices, as well as the highest/lowest prices, over a given time period. Take, for example, a green 10-minute candle like the one seen above. The upper wick indicates that the price rose above the final closing price at some point during the 10-minute period. The upper wick represents the difference between the highest attained price and the closing price. The difference between the opening price and the lowest attained price during that 10-minute period is represented by the lower wick.

Step – 5

Top Candlestick Patterns

●     The Hammer

When it comes to appearance, the Hammer is one of the most recognizable candlesticks. Like a typical hammer, the bottom of the downtrend has a long lower wick. The body is frequently tiny, with little or no top wick. A hammer can be green or red in color. It could imply a potential price increase or a significant reversal trend, depending on the situation. The chart below illustrates that a bottom was reached following a period of intense selling pressure. Buyers quickly gained impetus, resulting in the long lower wick. The pattern was reversed once the Hammer was

formed, and prices began to rise.

●     The Inverted Hammer

The inverted Hammer differs from the Hammer only in that the long wick lies directly above the body rather than below it. The color of an inverted Hammer might be either green or red. In the same way that the Hammer does, an Inverted Hammer indicates the possible commencement of an uptrend.

●     The Bullish Engulfing

At the end of a decline, two candlesticks make this pattern. The first candlestick is red (bearish), whereas the second is green (bullish) and far larger than the first. Simply said, the second

candle’s body is enormous enough to completely envelop the first. There should also be a minor

difference between the opening and closing prices of each candles. The majority of the time, these discrepancies aren’t visible in bitcoin markets. This pattern indicates that purchasing pressure has risen dramatically and is now outnumbering selling pressure.

●     The Piercing Line

A long red bearish candle is followed by a long green candle to make this candlestick pattern. It happens at the bottom of a downward trend. Both candles have a price difference between their opening and closing prices. Also, the green candle is roughly halfway up the body of the bearish candle and is closing. This pattern shows that, despite the bearish start, purchasing pressure increases throughout the second candle. This indicates that Bulls are interested in purchasing at the current price.

●     The Morning Star

At the bottom of a downtrend, three separate candles make this pattern. The first bearish candle is quite long, whereas the second, dubbed the star, has long wicks and a short body. The preceding candle shuts below the star candle. The third candle, on the other hand, shifts bullish and closes directly above the midway of the first. This pattern indicates that the downward pressure is reducing and the market is transitioning to an uptrend.

●     The Hanging Man

This pattern is the bearish counterpart to the hammer. It is usually formed at the end of an uptrend and has a long lower wick and a modest body. It can be either red or green in color. This pattern indicates that the uptrend has weakened, and it is a sell signal for traders.

Step – 6

A Quick Quiz

What is a crypto market sentiment?

How sentiments affect the crypto market?

Can you give any example of crypto market sentiment? Name 5 sentiment analysis tools.

What do you know about crypto candlesticks? How can you read candlesticks?

What does a green candlestick represent? What does a red candlestick show?

Give a few examples of famous candlesticks.

Written by Lily Grey

A 25-year-old American girl graduated from Oxford in Business Administration.

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