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Serum Setup

Overview-

Serum is a Permissionless Decentralized exchange (DEX) that "brings the speed and convenience of centralized exchanges to DeFi while remaining fully trustless and transparent" (projectserum.com). SRM is the token of the Serum ecosystem. Serum offers full Solana integration while being fully interoperable with ETH. Serum's cross chain swap works similar to a middle man in a trade deal by ensuring that both parties have kept their agreement.


Did you know? What makes serum unique?

Serum's cross-chain swap protocol allows users to exchange assets between blockchains in a trustless manner. Meaning both parties have full trust the deal will not go through unless the agreed terms are met based on the programming on the blockchain.


Chart-


Key/analysis-

Purple/red channels- display original trend intentions from early august, with a strong support level marked purple and an even stronger marked green.

Original channel started from green to purple dash on purple channel. Other 2 channels are what we refer to as 'blowoff' channels at FNL (see below).

Blue channels- original denoted with thicker blue lines, other 2 again are blowoff channels.

The blue channels represent a new tendency for the market to head upward more quickly; same angle on both sides, but a much steeper one than purple. Often times steeper channels (>45degrees) are more difficult to hold and stay in than ones that are less aggressive (<45 degrees-0). These numbers aren't an exact measurement, just demonstrating the idea that steeper channels break more easily.


Conclusion- Serum looks to be struggling to continue in the steep upward climb (blue channel) initiated by a recent herd of bulls from Aug 12th. The current resistance around $7 could be an aggressive entry point to take if you have reason to believe Serum is climbing based on fundamental analysis of the company. I personally may wait until the market reaches the next level of resistance around $6.50 for an entry position in Serum. Then have another entry position upon reaching the bottom of the original channel around $5.75.

It is important to note that these entry points are based off a rising channel and may change depending on how long the market takes to reach the given positions. The entry points are defined by channels at an angle rather than horizontal key levels.


Going further


---Vocab-

Blowoff channel/blowoff level- These extra levels help to define a range and show desired entry points based on possible support/resistance. When I first learned how relevant the -100% and 200% levels of a good channel were (with strong disbelief), i was amazed and now cannot unsee the market respecting those levels- T. Percentages based on distance across channel- 0% at start with 100% being the distance across the channel.


Permissionless- Permissionless vs permissioned blockchains quick look.

Permissionless blockchains are often referred to as public blockchains and allow anyone to engage on the network and see the blockchain information. Permissionless blockchains bring trust to anyone interacting with it because the information is public. This makes them better suited for a usage that is meant to appeal to everyone, but without involving business secrets.

Permissioned blockchains are the opposite of permissionless. Permissioned blockchains are better suited for private companies or anyone wanting to keep information private or a private network of people. Joining a permissioned blockchain requires approval from a central authority. Permissioned blockchains are more easily scalable and more efficient with transaction speeds. Performance combined with a level of privacy and customizability makes them better suited for business uses such as banking or internal voting needs.



---Charting practice- Try finding the same angle on both sides of the price action to help define a support/resistance channel in a given direction. Watch how these levels react over a given time period, and practice recognizing when the market has fallen into a trend channel by recognizing the same angle on both sides of the price action. You can also look back and see how these channels have reacted in the past by finding a given trend channel, establishing how early you could have recognized the channel in the price action, then watching if or how long the market respects the given levels you have drawn. With practice this can be a very useful skill with the markets.


Here's my example of this exercise for Serum (created from trading view's free charting site)-

-Verticle green lines denote when anyone could have drawn each of the 2 channels based on confluence of the same angle on both sides. You may have recognized these a bit later, or assume the channel to be more weighted after seeing more confluence. (again outside of the channels are the same channel copied above and under the original).

-Green dots represent the data points used to draw the channel.

-Black dots represent each time the purple channel was respected after being drawn (12). This can include both sides of the channel, the 50% mark halfway across, and the -100 and 200% blowoff levels. (The midpoints of the blowoff channels can also be relevant, but hold slightly less weight in my opinion- T)

-Purple squiggles represent each time the blue channel was respected after being drawn(5).


FNL Crypto DNA

FNL members will learn how to apply different trading strategies over time in order to better understand what each market is doing at any given point using technical analysis. Being able to recognize entry points for themselves has given many FNL traders a new sense of confidence and full control over their trading/financial responsibilities. Balancing technical analysis strategies with a level of awareness from fundamental analysis and research on each asset gives our traders at FNL the best possible advantage in the crypto markets.


Thank you- FNL T