Visual Screener

What is a cryptocurrency VisualMap? How to use it to do well in cryptocurrency market trading?

1. Cryptocurrency VisualMap

Cryptocurrency VisualMap is a powerful tool designed to assist investors in efficiently analyzing cryptocurrency market data. It has multiple features, firstly, it supports different time periods, including 15 minute, 1-hour, 4-hour, and 24-hour levels, so that investors can gain insights into market dynamics from different time dimensions. Secondly, it provides multiple conditional modes, such as price change vs position change, price change vs trading volume change, trading volume change vs position change, etc., to meet the diverse analysis needs of investors.

Under the conditional mode of price change vs position change, the relationship between volume and price and the representative meanings of the four quadrants:

(1) First quadrant (long position opening, price increase and increased position)

In this quadrant, as prices rise, holdings are also increasing, indicating strong forces from multiple parties in the market. New bulls are constantly entering the market to drive prices up, and the increase in holdings shows that investors continue to be optimistic about the future, and the upward trend is expected to continue, indicating a relatively strong market performance.

(2) Second quadrant (closing short positions, price decline, and reduced holdings)

If the price drops but the position decreases, it indicates that the bears are closing their positions at a profit. This may be due to the bearish forces dominating the market in the early stage, causing the price to fall. At present, the bears believe that the price has reached expectations or there are other factors that prompt them to close their positions and leave. However, the price still tends to fall, and the market may enter a period of oscillation or reversal in the future.

(3) Third quadrant (long positions closed, prices falling and positions reduced)

The price has fallen and the position has decreased, which means that long positions are closing their positions and cutting losses. The market has a strong bearish sentiment, and multiple forces are gradually weakening. Prices continue to decline under bearish pressure, and the market may remain weak in the short term. The downward trend may continue for some time.

(4) Fourth quadrant (short position opening, price increase and increased position)

If the price rises but the position increases, it may be due to bears opening short positions, or it may be due to the stronger entry force of new bulls driving the price up. The game between long and short sides in the market is fierce, and the uncertainty of the future trend is high, which may lead to the obstruction of the upward trend or the reversal of the downward trend.

We can formulate trading strategies based on the volume price relationship and market implications represented by these quadrants, combined with other factors for comprehensive judgment.

3. Methods for using cryptocurrency visual filters to facilitate cryptocurrency market trading

(1) Deeply observe trends and patterns

In the current 4-hour level, price change vs position change conditional mode presented in our screenshot, investors can clearly observe the changing trends of different cryptocurrencies in terms of price and position. Taking the first quadrant as an example, IOST, GAS, and HIFI cryptocurrencies have shown outstanding performance. They have not only significantly increased their long positions, but also experienced significant price increases. This phenomenon may suggest that the bullish forces currently dominate these currencies, and the overall bullish sentiment in the market is relatively strong. At this point, we can further investigate the fundamental situation of these currencies, including the technical strength of the project, team background, application scenarios, as well as the latest positive news. At the same time, combined with technical analysis, we can check whether their price trend has broken through important resistance levels and whether there is a good upward trend line. If, after comprehensive evaluation, all indicators strongly support its upward trend, investors can consider building long positions appropriately to comply with market trends and obtain potential returns.

(2) Carefully compare currencies in different quadrants

Looking at the third quadrant again, FARTCOIN has experienced the most significant decline, and the scale of long positions closing is also the largest, indicating that the current bearish power of the currency is strong, and the bearish sentiment in the market is prevailing. For this type of currency, investors should remain cautious and not blindly buy at the bottom, in order to avoid falling into the dilemma of continuous price decline. You can patiently wait for the price to stabilize or for some clear reversal signals to appear, such as increased trading volume or the formation of a bottom pattern in the price, before making further trading decisions. For cryptocurrencies such as HIVE, AI16Z, SONIC, which are also in the third quadrant and have a high decline and long position closing scale, a similar cautious attitude should be adopted, and their subsequent trends should be closely monitored. From a right-hand perspective, it is not recommended to buy until there is no obvious sign of a stop to the decline, but from a left-hand perspective, it is possible to try buying in batches.

As for the currencies in the second quadrant (short positions closed and prices fell) and the fourth quadrant (long positions closed and prices rose), the market situation they present is relatively complex. The currency in the second quadrant may be closed due to short positions taking profits, but the price still falls due to inertia or other factors; The currency in the fourth quadrant may be a bullish profit taking, but the price still has some support and is rising. For these currencies, investors need to combine more market information and analytical tools to explore the underlying reasons and potential trading opportunities, and cannot easily make trading decisions based solely on visual filters.

(3) Comprehensively integrate other indicators and information

Although cryptocurrency visual filters provide investors with valuable market information, they are only one of many analytical tools and cannot serve as the sole decision-making basis. Investors should combine it with other technical indicators when making trading decisions, such as the Relative Strength Index (RSI) which can help determine whether the market is overbought or oversold, and the Moving Average (MACD) which can assist in analyzing changes in price trends and the strength of momentum. At the same time, fundamental information is also crucial, including the project's technological innovation capability, the team's professional competence and experience, industry development trends, and policy environment, all of which will have a profound impact on the long-term value of cryptocurrency. In addition, the dynamics of market news cannot be ignored, such as major cooperation, regulatory policy changes, technological breakthroughs, and other news that may trigger severe market fluctuations. Only by comprehensively considering these multiple factors can investors make more comprehensive and accurate trading decisions, effectively reduce trading risks, and increase the possibility of investment returns.

(4) Reasonably set stop loss and take profit

When trading based on the information provided by the cryptocurrency visual filter, whether investors choose to go long or short, they must set reasonable stop loss and take profit levels. Taking a long position in the first quadrant as an example, the stop loss point can be set below the recent low by a certain margin, which can timely stop the loss in case of unexpected price drops and avoid further losses. The profit taking point can be reasonably set based on the resistance level of the price, the previous high point, and the investor's own profit target. When the price reaches the profit taking point, it is necessary to close the position in a timely manner to lock in profits and avoid profit taking due to market fluctuations. By setting stop loss and take profit, investors can better control risks and ensure rational and prudent investment strategies in the complex and volatile cryptocurrency market.

In short, the cryptocurrency visual filter is an indispensable auxiliary tool for investors in the cryptocurrency market. It can provide investors with intuitive and convenient market information. However, in the actual trading process, investors need to comprehensively use multiple analysis methods and information sources, operate cautiously, in order to achieve ideal returns in the challenging and opportunity filled cryptocurrency market.