You cannot predict the future, but you can learn from the past.
AND some cryptocurrency tokens are much (much) more predictable than others when analyzing their historical trading patternsG.
Actually, Five cryptocurrencies in particular have shown the predictability of trading which could give insightful crypto traders a huge advantage in the markets..
These five tokens showed one thing in common:
- After discovering strong bullish conditions, they saw an average increase in value measured at 24, 48, and 72 hours.
- After experiencing extreme bullish conditions, they also increased on average after 24, 48 and 72 hours.
- The minimum average gain in the 72 hours following an extreme flag was a surprising 10%.
Even though This is a measure of past trading activity and (of course) not a promise of future performance. It is noteworthy that these tokens, led by Avalanche (AVAX), exhibit behaviors that consistently produce large average profits, although other tokens – including AAVE and Curve (CRV) – tend to decline in value * over similar timeframes * and other tokens have little correlation with historical trading conditions.
Background for determining predictability
If you’ve been following Cointelegraph for the last year, you probably have something about that. had read The data intelligence platform Markets Pro and the quantum trading indicator called VORTECS ™ Score.
For purely hypothetical and automated tests the metric generates a staggering return on investment that can reach percentages of hundreds of thousands if it spans several months.
However, when it comes to putting historical precedents into practice as a regular investor, Knowing the individual habits of each crypto asset is more useful than marveling at the aggregated data. this is a way for traders to know which assets are following more familiar paths to massive returns.
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Which story fits best?
The idea behind the VORTECS ™ Score is to give traders a Overview of multidimensional patterns in crypto assets. Past performance data. The key principle underlying the usefulness of the score or the score is that individual tokens often behave similarly in terms of trading metrics and social mood… Days before their prices skyrocket (or drop). If recognized in advance, these regularities can be used to make trading decisionsalthough they in no way predict price developments.
Historical average earnings
The graph shows twenty coins with the highest number of VORTECS ™ values above 80 or 90, counted since the platform was launched.
High values indicate the algorithm’s confidence that the current outlook for the coin is historically bullish.. A value of 90, although quite rare, expresses the algorithm’s confidence that prices have usually moved higher and more targeted if it has shown similar trading conditions in the past.
Bars represent the average earnings after certain times of achieving the highest number of points. For example, the green bar marked 72/90 in the legend represents the average return that the asset achieved 72 hours after reaching 90 points. the orange bar shows the average gains after 48 hours after reaching the VORTECS ™ score of 80.
Avalanche (AVAX) It is perhaps the most obvious and consistent operation for cryptocurrency investors using historical analysis as part of their research. Not only the high scores or the score were directly correlated with the price increase, but the profits perfectly supported the thesis of the algorithm.
Score 80, sale after 24 hours: 3% average profit
Score 80, sale after 48 hours: Average gain of 6%.
Score 80, sale after 72 hours: Average gain of 9%.
Score 90, sale after 24 hours: Average profit 12%.
Score 90, sale after 48 hours: 16% average profit.
Score 90, sale after 72 hours: 28% average profit.
Others are also very consistent, with bars close together.
Axie Infinity (AXS) is a great example: 4% at 24/80, 7% at 48/80, 9% at 72/80.
Others offer modest returns after hitting 80, but they do exceptionally well after hitting 90:
For example, Tellor (TRB), with an average profitability of 5% 72 hours after reaching 80 and 17% after 72 hours after reaching 90.
Some bars even show below zero and mark the tokens that tended to lose value after high VORTECS ™ values.; however, these are far exceeded.
Most cryptoassets that exceed the VORTECS ™ score of 80 show a constant increase in value within 24 to 72 hours, and often longer.
What the graphic suggests is that Dealers can be safer when the VORTECS ™ Score illuminates AXS, MATIC, AVAX, LUNA and TRBwhile they are more cautious about stocks like AAVE or CRV.
The Markets Pro team constantly tracks the performance of individual assets as well as the score itself.. A detailed breakdown of the relevant data points is published in the weekly VORTECS ™ report every weekend to help subscribers get the most out of their membership.
Cointelegraph Markets Pro is available exclusively to members on a monthly basis for $ 99 per month or annually with two free months. It has a 14-day money-back policy to ensure it meets the needs of subscribers in cryptocurrency trading and investment research, and members can cancel at any time..
Cointelegraph is a financial information publisher, not an investment advisor. We do not offer any personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk, including the risk of permanent loss and total loss. Past performance is not an indication of future results. Illustrations and graphics are correct at the time of writing or where otherwise stated. Strategies tested in real time are not recommendations. Consult your financial advisor before making any financial decisions.