I have a bunch of stocks and mutual funds in my portfolio. I’d like to sell some small percent of these “traditional” investments and purchase some cryptocurrency. But I’m trying to figure out how to calculate when is the best time to do this transfer.
Basically, what I want is to see some chart and setup an alert that tells me:
- When the stock price is high (relative to my fiat currency) and
- When the price of the cryptocurrency is low (relative to the above fiat currency)
First, how do I do this theoretically? Is there some way to construct a chart that simplifies two lines into one line, which is some calculation of the two lines that shows a single line with points very high on the y-axis when the above two conditions are true, and very low on the y-axis when the above conditions are not true?
Second, how can I setup an alert that tells me when the chart above is at some sort of year-time-high, so I can be alerted that “now” is a good time to sell stocks and buy the given cryptocurrency.
First of all, don’t try to time the market. You will never time it right.
Second, what you are looking for is called “technical analysis”. That is based on the theory that all the information you need to analyze a stock or crypto token is in the market data (price, volume, etc.), and by analyzing the market data over time you may be able to see a signal as to when to make a market move. There are lots of resources available online to learn the basics.
And finally, let’s say you read up on this, figure out some of your own good signals, and start to trade based on them. There are professional trading firms who do all that, algorithmically, much faster than you can. You may make money, but it will always be after they do.
Still want to do it? Good luck!
Is there any resources available for technical analysis, specifically going from stocks to crypto? I’ve searched and searched, but couldn’t find anything.
There is, but technical analysis is a pseudoscience. It’s nonsense.
