Well, Binance Academy provides useful information, if you search for a specific topic. If you just want to dive into something, there may lack a proper overview. They published an eBook which dealt with the situation
to gently introduce you to a range of trading topics. If you're a total novice, this is the guide for you. But even if you know what you're doing already, think of this eBook as a reliable handbook for sharpening your skills.
And that's just what it does: Additional material can still be found on the Binance site, but you get some new ideas and can pick something interesting.
My problem was: The book itself wasn't to be found on https://academy.binance.com, but someone, who got it, sent me a download link I want to share with you. It is basically the same as on https://academy.binance.com/en/articles/a-complete-guide-to-cryptocurrency-trading-for-beginners except for the last chapter "Cryptocurrency Trading Tips", which is only to be found on the website. Due to its nature it may be less actual than the article, it's mostly the same structure but clearer as it's far nicer to read and your are easily able to skip through the table of contents.
Well, I found no copyright - but it's clear that it is BinanceAcademy's intellectual property and I assume, that Binance is interested in people reading it.
The pdf's properties show that copying (text) is allowed, it is not encrypted or otherwise secured. So with a clear disclaimer: Here is an old version of what you will find in the linked article - I didn't upload it, it's published from Binance Academy and it's just a better format to look over than the article cited above:
Binance Academy Cryptocurrency Trading eBook - powered by wikisend.com
The link will expire in April.
Table of contents
What I found interesting or what was new to me are the sections:
I. Trading Basics
II. Financial Instruments
III. Trading and Investing Strategies
...
-> The Dow Theory
-> The Elliott Wave Theory
-> The Wyckoff Method
...
IV. Getting Practical
V. Technical Analysis Basics
VI. Technical Analysis Indicators 50
This is the longest chapter, including Leading and lagging indicators, Relative Strength Index (RSI), Moving Average (MA), Volume-Weighted Average Price (VWAP) or the Ichimoku Cloud. I skipped it entirely :) I admit that doing technical analysis is an art, but it's not an art for me.
Let's have a selected look at the three arrows inserted above:
-> The Dow Theory:
Never formalized, it's a loose summary of Charles Dow market principles, among them:
X) Everything is priced in: "markets reflect all of the available information on the price of their assets", also known as efficient market hypothesis (EMH).
(I like that idea although I don't know if I would really support it.)
X) The distinction between
o) primary trends: consisting of three phases: 1. accumulation, 2. public participation, and 3. excess & distribution.
o) secondary and o) tertiary trends, which unfortunately are not explained.
X) The importance of volume – it's only a trend if it is confirmed by a high trading volume.
-> The Elliott Wave Theory
The core idea is: Market movements depend on the psychology of market participants. Undisputed, but there are patterns to be recognized in the charts: The Elliott Wave pattern consists in a series of eight waves (five Motive Waves that follow the general trend, and three Corrective Waves). For example:
Okay, I read the more extensive article on https://academy.binance.com/en/articles/an-introduction-to-the-elliott-wave-theory?utm_source=ebook and came to the conclusion: not applicable for me but a nice concept in theory.
-> The Wyckoff Method
Charles Wyckoff identified three fundamental laws:
X) the law of supply and demand: prices go up when demand is greater than supply, and vice versa. So far, so well known.
X) the Law of Cause and Effect, also general knowledge: specific events generate up-/downtrends.
X) the Law of Effort vs. Result: The third Wyckoff law is interesting: Changes in price come from efforts, which can be read from the trading volume.
If the price action is balanced with the volume, the trend will be stable. If there is a considerable difference (for example high trading volume after a time of little trade and at the same time a fairly stable price), it indicates that the trend will stop or change direction.
Insofar as trade is concerned the Method offers a five-step approach:
X1) Determine the trend
X2) Identify strong assets and
assess wether they are moving with the market or in the opposite direction
X3) Find assets with sufficient cause to enter the position and to take the risks
X4) Estimate the likelihood of the desired movement considering price & volume: Is the asset ready to move?
X5) Time your entry
Here (in the middle of the article) is more information about the so called "Composite Man", an imaginary single entity controlling the whole market (representing the biggest players - playing against the majority of retail investors) and Accumulation and Distribution Schematics following Charles Wyckoff.
I also liked reading more about order book depth, slippage and the bid-ask spread but I assume, most of you are allready aware of those.
Enough for today, all I have to do is wish you: All the best trades!
Bye.