I'm going to establish a series that would be helpful towards everyone who is getting into Trading. I also posted this in my
blog, so it might be similar or the same content. This could be helpful towards beginners and even the veterans. It could help you refresh your memory or something you may not have encountered. Hoping this could help you guys.
Introduction to Crypto Technical AnalysisWhen analyzing cryptocurrencies or any other kind of investment, there are two main ways to perform an analysis
- Fundamental analysis - aims to assess the value of the cryptocurrency by exploring the underlying metrics of the project to determine if it is a good investment. This involves checking the whitepaper, use cases, project roadmap, the team behind it and other variables.
- Technical analysis- follows the set of rules and predictions based on the historical price data in order to predict the future price movements.
We're going to talk about Technical Analysis and the most common things that you need to understand the world of cryptocurrency trading.
Technical analysis (TA) is a methodology for evaluation of investments which involves a statistical analysis of market activity. These are the tools you need in order to have a successful analysis of the price charts. It helps you make educated guesses where possible price movements could go.
- Charting Lines
- Patterns
- Indicators and Oscillators
TA is based on three underlying assumptions: - Price moves in trends
- The market discounts everything
- History tends to repeat itself
Who is Responsible for Technical Analysis?Technical Analysis was developed by a large number of contributing individuals, mainly by scholars with knowledge and interest in the economy, finance, and mathematics. A lot of successful traders also contributed, as they dissected the markets from every angle imaginable to gain the upper hand and get the indicators that are clear and easy to use.
An example below is shown
Stochastic RSI gives us information if the market is overbought or oversold.
- Overbought: A situation where the coin is trading above its true value, without any fundamental reasons. For example, if the coin's price is rising without any reason (partnerships, improvements, other events) then it would be wise to sell it, as we can expect a pullback towards its true value.
- Oversold: A situation where an asset is trading below its true value, typically due to panic selling or market overreaction. This is the best time to invest in the coin, as its current price is below its true value.
This is just one of the indicators supported by
Gunbot and there are a lot more.
You could take advantage of this knowledge and make it automatic. Have your profits and never miss an opportunity with the market.
Don't hesitate to message me here or in
Telegram.
[1]
https://gunbot.ph/introduction-to-crypto-technical-analysis-trade-your-coins-wisely/[2]
https://gunbot.ph/technical-analysis-guide-for-crypto/ yes I read it clearly and it will be important and well defined the topic for me too to get the idea about analysis is more important in trading and more importantly we need to follow everything which will be better for us then only the successful trader is made by this market
Yes technical analysis are the most important thing for everyone to be successful in cryptocurrency without this college we can not go with the correct flow of current market and if you learn this thing to find what is happening in the future will be little easy for everyone to predict their investment possibly.
Yes they are quite important, but you shouldn’t really trust them, you should still have it in mind that there are still risks in cryptocurrency. Don’t put 100% of your trust in them, cause they can still fail you.
I have used them a lot of times they are not always accurate. If you check the front you should also check the back and be ready for the both sides for whatever that comes out of it. Have it mind that the price might either go the right side or the left and you’re either going to benefit or lose. That’s why this market has risk.
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