• 05 November, 2024
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Big Money Not Interested in Events: Trading Strategies Based on Fear and Euphoria Model

Big Money Not Interested in Events: Trading Strategies Based on Fear and Euphoria Model

Recent observations suggest that big money is not interested in events, but rather in buying and selling when prices are high. This is based on the fear and euphoria model, which indicates when it is time to buy and sell based on market sentiment.

Despite media revelations, these strategies are not hindered and may even be created by them. Onchain data confirms this, suggesting that these trading strategies are effective in predicting market movements.

For example, on February 14th, 2023 and March 6th, 2023, the F&G model based on the same words was used to drive the price of BTC down. This resulted in similar price levels, with a red indication around 7k.

However, mid-term calm moves with slightly larger amounts in a simple model of “buy fear sell euphoria” have shown good calculation of levels without overstating targets, such as the commonly cited “100k”. This approach can yield significant earnings even in bear markets, and is a promising avenue for study.

Source: Santiment

These observations are not intended as advice, but rather as technical comments. Overall, the fear and euphoria model appears to be a promising approach for those seeking to profit from market movements.

However, it is important to note that market movements can be unpredictable and there are always risks involved in trading. It is essential for traders to do their own research and analysis before making any investment decisions.

Furthermore, the use of trading models like the fear and euphoria model should not be seen as a substitute for fundamental analysis or an understanding of the underlying factors driving the market.

Despite these caveats, the fear and euphoria model has shown promising results in recent market movements. As such, it is likely to continue to be used by traders looking to take advantage of market sentiment.

Conclusion

In conclusion, while big money may not be interested in events per se, trading strategies based on the fear and euphoria model have proven effective in predicting market movements. As with any investment strategy, however, it is important to proceed with caution and to always do your own due diligence.

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