It’s All Relative
From the outside, financial markets are extremely complex and difficult to understand. This is true, to a point. However, the scrutiny of an experienced and knowledgeable eye can gain a degree of clarity. Understanding market dynamics is key. However, there is another aspect that is active and operational within every market dynamic, and that is relativity. Identifying and understanding relativity ratios within market movements is like owning a secret formula.
It’s like gaining access to the inner workings of a company. Everything becomes apparent, regarding its objectives, logistics, and business activities. With this level of information, one can discern which ventures and strategies are profitable and within the best interests of the company. Similarly, relativity ratios provide additional insight into the workings of a particular financial market.
I have often been asked how I made certain calls in the past with such a high degree of accuracy. Whether it was the Bitcoin bottom in September of 2022 or an altcoin that went on to rally thousands of percent. At the heart of all of these calls was the interpretation of relativity ratios operating within the fundamental dynamics of the market at the time. It’s more than technical analysis, even though TA is imperative.
The Ratios Exist Everywhere
You see, even within technical analysis practices, relativity ratios are present. These ratios provide greater clarity and empower a more accurate extrapolation and understanding. Furthermore, understanding these ratios also aids in deploying capital, and structured dollar-cost averaging strategies, and gives additional insight into market movements. Everything is connected and interconnected.
Apart from identifying these ratios or understanding how they work, they will be invisible. Strangely enough, they are hiding in plain sight. Relativity ratios are very closely tied to cause and effect. Causation is in many ways a type of relativity ratio. How dynamics respond to certain events depends on how relative they are in practice and manifestation. It is somewhat complicated. However, understanding provides simplicity.
For example, a teacher or lecturer understands what they are teaching. This understanding enables them to communicate the finer details more simply to their students. For simplicity to exist, complexity must be understood. The moral of the story is:
The more you know and understand, the simpler it becomes.
This is true of financial markets and relativity ratios in particular. This won’t be attractive to the average Crypto investor, as it is not easily acquired. However, it can revolutionize your experience within the financial world. Traders who trade news events are essentially relying on causation, and to an extent relativity ratios. Understanding the strongest and weakest points of relativity and how extensive reactionary adjustments are is key.
Final Thoughts
My BONK prediction was made when it was trading at a market cap of $24 million and was entirely based on relativity ratios. I revealed some in my initial article in October of 2023. BONK is currently trading at a market cap of $1.2 billion and has been significantly higher earlier in the year. Relativity ratios are at the heart of everything I do and are worth discovering and mastering. See you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.