How to follow the Crypto market on one chart
The crypto market can be a little hard to track sometimes. With so many coins (10K+) out there, how can you possibly keep up to date with what’s happening? At the same time that it seems like when there is a crash, everything is instantly affected, leaving you feeling like you should have been more aware.
The simple fact is that you can’t possibly track everything, all the time. Now, as a trader and investor myself coming from the stock market, I have a few tricks I use to track markets which can be applied to Crypto as well.
Specifically, in the stock market, I use Index charts to have a quick view of what’s happening.
Let's talk about one example. On the Australian Securities Exchange (ASX) there are more than 2,000 listed companies — with more being added all the time. Now, I have been trading the ASX for more than 10 years and I still don’t know or have the capacity to track everything. So how do I follow and stay aware? Index charts.
ASX200 (XJO)
Let’s take one simple example to illustrate a point. The S&P/ASX 200 is a reference to the top 200 largest publicly listed companies, organised by market cap. We can view this in terms of “points” as a value measure and see the market on one chart. (For this example, I have used a simple Area Chart)
While this only represents a small number of companies in comparison to the overall listings, they are the highest value listings and often represent the broad view of the market. Now, of course, you need to do a lot more work than this as a trader or an investor to find an actual stock to buy, but this gives you an idea of the concept of tracking using an index.
So how does this apply to Crypto?
We live in a time where technology makes our lives much easier in many ways. Thanks to companies like ours at TradingView, we have tools available to help.
Specifically in Crypto, we have a very similar index that you can also use to follow and track the market.
TOTAL Market Cap
Instead of typing XJO into the ticker bar on TradingView, you can type TOTAL. This will bring up an index that currently tracks the top 125 coins, organised by market cap. So here, we have our very own XJO, but in Crypto. Useful? Absolutely.
Let's take a look at the below chart of TOTAL, but this time set up as a Candlestick Chart, rather than an Area Chart.
You can see that by using this index as a candlestick chart, I can now apply Technical Analysis to the market structure to keep myself fully aware of what’s happening in the Crypto space.
Other Indices in Crypto
Some other interesting indices / indexes you might like to take a look at are:
- TOTAL2. Everything except Bitcoin.
- TOTAL3. Everything except Bitcoin and Ethereum.
- TOTALDEFi. Track the Defi coins.
I hope this article has been useful!
For more education, articles and resources, visit my main website — www.glennleese.com
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