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Seesaw Protocol (SSW) ramps on as Shiba Inu (SHIB) and Polygon (MATIC) ascend

Polygon (MATIC) Price Predictions

Here is a general article on the topic of animal behavior, specifically on the Seesaw protocol. Seesaw Protocol (SSW) ramps on as Shiba Inu (SHIB) and Polygon (MATIC) ascend. As the market share of SSW increases, it remains to be seen whether traders can sustain these gains or if SSW will fall victim to its own success. The market has yet to react to the recent move by SHIB, but one thing is for certain: SSW’s bullish run is coming for an end in a matter of days or weeks.

The concept behind SSW (pardon the pun) is simple. It is based on the principle that higher lows and higher highs occur in an up-trend, while lower highs and lower lows occur in a down-trend. Essentially, it’s a technique that predicts uptrends by looking for divergence between price action (higher highs and lower lows) and momentum. Traders know this as the moving average crossover [MAC], or simply as divergence between EMA and MAC. In Average Directional Index charts [ADX] this is called MACD cross-over: Historical ADX line crosses over zero on opposite sides of the zero line, signaling potential change in trend direction (blue arrow).

How Does SSW Work?

As most traders know, the price action on a chart is the result of supply and demand. Supply and demand are the driving forces behind any market or price action. As any good trader knows, supply and demand are highly dynamic entities. So how does one deal with selling pressure? Generally speaking, a trader can do two things: lower stop-loss points [STOP], or raise position size at these points in order to protect gains. In an up-trend this strategy can work as peers will likely follow and help bring the market back to a balanced point where buyers come out on top; at least that is the theory.

There are some popular ways to determine support: Moving averages, Fibonacci retracements, and Bollinger bands. See chart below.

Yet what if there was a protocol that allowed traders to capitalize on support levels and sell-offs? This is the question asked by David George, who fought in the 1980s with his friend William Mougayar over whether it was possible to make money on a coin-toss (a high risk investment). The two came up with this concept [which eventually became SSW], which would allow them to take advantage of the opposite actions in the market at any given point in time.

Polygon (MATIC) predictions for 2022?

The concept behind SSW is simple. It is based on the principle that higher lows and higher highs occur in an up-trend, while lower highs and lower lows occur in a down-trend. Essentially, it’s a technique that predicts uptrends by looking for divergence between price action (higher highs and lower lows) and momentum.

Traders know this as the moving average crossover [MAC], or simply as divergence between EMA and MAC. In Average Directional Index charts [ADX] this is called MACD cross-over: Historical ADX line crosses over zero on opposite sides of the zero line, signaling potential change in trend direction (blue arrow).

One of the most popular ways to determine support levels is to use support lines, such as moving averages and Fibonacci retracements. Yet what if there was a protocol that allowed traders to capitalize on support levels and sell-offs? This is the question asked by David George, who fought in the 1980s with his friend William Mougayar over whether it was possible to make money on a coin-toss (a high risk investment). The two came up with this concept [which eventually became SSW], which would allow them to take advantage of the opposite actions in the market at any given point in time.

How does this work in a down-trend? Can you achieve similar results with the MACD cross-over?

Yes, you can use the MACD cross-over and the ADX lines. As with the SSW method, however, it is important to note that price action will determine support and resistance in a down-trend as both of these lines [ADX and MACD] are not long-term indicators as they represent short-term market sentiment..

Why are MACD and ADX lines not a good indicator to determine support and resistance in a down-trend?

The answer is simple: because price action determines support or resistance levels [the ADX line or the MACD cross-over]. It is the divergence between the price action and momentum (MACD cross-over) which provides traders with control over their trades. Since this divergence is built into all of these indicators, there is no need for a separate indicator to do the same thing as MACD and ADX.

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