Chart analysis

[Raistlinnn]

Hello to everybody,

I have question about chart analysis. Are there any differences betwen chart analysis in traditional stock exchange and crypto exchange?  Considering that the crypto exchange is much more emotional in decision making? Can we use exactly the same analysis techniques or do we have to adjust them to our crypto reality? If yes, please give me some tips what I have to change that the analysis would be more accurate. 

 

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[advjump]

Good question  , looking forward for answers of experienced crypto traders

[Fatunad]

Hello to everybody,

I have question about chart analysis. Are there any differences betwen chart analysis in traditional stock exchange and crypto exchange?  Considering that the crypto exchange is much more emotional in decision making? Can we use exactly the same analysis techniques or do we have to adjust them to our crypto reality? If yes, please give me some tips what I have to change that the analysis would be more accurate. 

 

I can say that having technical or chart analysis do somehow works on crpyto trading but not all the times since volatility is really high which isnt really compared or the same on stocks or forex trading.This is why i do say it is somehow hard to trade up on this cryptoworld but still manageable if you do already got the techniques or ideas.

[DaMut]

technically you can do it,
in general trading stock and others are same like trading cryptocurrency.
but the difference is cryptocurrency easily manipulated by some peoples,groups or organizations.
unlike trading stocks,it need a lot of factor to determine the price.
for example crisis economy and something like that.
in other words,if you're using your chart analysis at least you can read the market at least 70% and the rest is come from the trader themself.
but if you're using it in cryptocurrency you will only get 30% from it,and the rest is from trader sentiment.
'Buy on rumour and sell it on news'.
that is the rule when in cryptocurrency.

so can we use it ? yes you can,but you can not use it fully(i mean you can not use it as your goal,mindset or whatver you called it).
but instead use it as a map for your decision and make some action based on the map and trader sentiment.

[HeRetiK]

Hello to everybody,

I have question about chart analysis. Are there any differences betwen chart analysis in traditional stock exchange and crypto exchange?  Considering that the crypto exchange is much more emotional in decision making? Can we use exactly the same analysis techniques or do we have to adjust them to our crypto reality? If yes, please give me some tips what I have to change that the analysis would be more accurate.

I can say that having technical or chart analysis do somehow works on crpyto trading but not all the times since volatility is really high which isnt really compared or the same on stocks or forex trading.This is why i do say it is somehow hard to trade up on this cryptoworld but still manageable if you do already got the techniques or ideas.

In concur. A buddy of mine is doing a lot of stock trading and has also dabbled in forex and crypto a bit, and according to him it's very different. The basic rules still apply, but much less reliably. Nonetheless I guess it's mostly a matter of experience, so if you know your technicals and watch the crypto markets a bit you should be able to take your own lessons on which techniques work and which don't.

[entrepmind23]

Hello to everybody,

I have question about chart analysis. Are there any differences betwen chart analysis in traditional stock exchange and crypto exchange?  Considering that the crypto exchange is much more emotional in decision making? Can we use exactly the same analysis techniques or do we have to adjust them to our crypto reality? If yes, please give me some tips what I have to change that the analysis would be more accurate. 

 

Technical analysis still works but the difference is that there is more fundamental analysis involve like news, roadmaps and updates to the project. In stocks, there are certain prices that a trader looks at like round numbers or looking at fibonacci retracements but in crypto it still apply but more often than not it is bypass because there are so many pumps and dumps happening. Many traders are more focus on news than the technicalities of it though TA still works but it has a less percentage being effective than in stocks do. In stocks, usually the traders have large capital that's why a news that is still unverified may not move the market but in crypto, a single unverified news can move the market because of herd mentality.

[dothebeats]

Hello to everybody,

I have question about chart analysis. Are there any differences betwen chart analysis in traditional stock exchange and crypto exchange?  Considering that the crypto exchange is much more emotional in decision making? Can we use exactly the same analysis techniques or do we have to adjust them to our crypto reality? If yes, please give me some tips what I have to change that the analysis would be more accurate. 

 

Quick answer: no. We can still use the same techniques on analysis and whatnot, but we can't rely to them as a solid proof/correlation to future price movements because as you said it, crypto markets are more emotional compared to your regular stock markets. I dabbled a bit in cryptotrading, and there are only two indicators that I used most of the time: price together with the current news and the order book in all exchanges. Getting the general sentiment of the market towards the coin is a good start, and you can measure it by the price and what's on the news today. And what defines it further is the order book. Strong support on the buy side proves that the market is positive and is ready for a push. That's how I do it though, and it's going pretty well from me. Haven't used MACD and other common indicators as it only increases the noise to signal ratio in my analysis.

[Pursuer]

Are there any differences betwen chart analysis in traditional stock exchange and crypto exchange?

no, the techniques are exactly the same. but you should know that "chart analysis" is not exactly science and it is not fool proof. in other words you don't predict anything with your analysis, you just make some guesses about most possible things that can happen. and it doesn't really have to happen.

Considering that the crypto exchange is much more emotional in decision making?

"emotion" has nothing to do with it. the crypto market in general is small and because of that it is easy to manipulate. there are altcoins that you can simply pump with as small amount as 1BTC!

[Raistlinnn]

Which technical tools do you use most often? What else I can do to increase my chances of winning, except fundamental analysis?

Thank You everybody for Your anwers, I hope so it will be helpfull for someone else but me.

[gabbie2010]

Yes chart analysis both works in stocks and crypto currencies but I think they worked well in higher timeframe starting from daily timeframe and above and also fundamental activities occasionally affects the price movement of all this charting analysis, in stocks we have news, especially from drahgi and in bitcoin segwit, be as it may there are some important Japanese candlesticks that works well when formed at some strategic positions e.g resistance and support or demand and supply tends to indicates price reversa or continuation  in charting analysis.

[TheQuin]

In concur. A buddy of mine is doing a lot of stock trading and has also dabbled in forex and crypto a bit, and according to him it's very different. The basic rules still apply, but much less reliably. Nonetheless I guess it's mostly a matter of experience, so if you know your technicals and watch the crypto markets a bit you should be able to take your own lessons on which techniques work and which don't.

I also come from a traditional trading background. I think the reason for what your buddy observes is that the big hedge funds use algorithmic trading systems and these are not present on crypto. A lot of those algorithms are built from technical patterns and because the big players are using them they become a self-fulfilling prophecy. There are some trading bots available for crypto but their systems are highly primitive in comparison.

[Reid]

It can be a guide but cannot be not be fully precise.
You can look for more besides that.
The hype can also affect the price and sometimes can do a lot of damage.
The FUD. Once it spreads too much it also makes a big difference. So all of that should be considered. You will always look to what the people are trying to make out of it.

[hendra147]

im not have experience at traditional market trading.
for me learning crypto stock chart is very hard, sometimes we found the great sky line to sell it, but sometimes before reach it, bad news come and the price down again 

[HeRetiK]

In concur. A buddy of mine is doing a lot of stock trading and has also dabbled in forex and crypto a bit, and according to him it's very different. The basic rules still apply, but much less reliably. Nonetheless I guess it's mostly a matter of experience, so if you know your technicals and watch the crypto markets a bit you should be able to take your own lessons on which techniques work and which don't.

I also come from a traditional trading background. I think the reason for what your buddy observes is that the big hedge funds use algorithmic trading systems and these are not present on crypto. A lot of those algorithms are built from technical patterns and because the big players are using them they become a self-fulfilling prophecy. There are some trading bots available for crypto but their systems are highly primitive in comparison.

That makes sense. I didn't account for automated high frequency trading, but I also assumed that part of what makes technical analysis less applicable to crypto is the general lack of trading expertise creating a more random market. Add to that relatively low trading volume and you get every pumper's dream and every technical analyst's nightmare.

[TheQuin]

That makes sense. I didn't account for automated high frequency trading, but I also assumed that part of what makes technical analysis less applicable to crypto is the general lack of trading expertise creating a more random market. Add to that relatively low trading volume and you get every pumper's dream and every technical analyst's nightmare.

That's pretty much the case on the low volume altcoins. High volume and liquidity markets like BTCUSD I find technical analysis is still very useful even though not as precise as on futures markets.

[chickenfried12]

Hello to everybody,

I have question about chart analysis. Are there any differences betwen chart analysis in traditional stock exchange and crypto exchange?  Considering that the crypto exchange is much more emotional in decision making? Can we use exactly the same analysis techniques or do we have to adjust them to our crypto reality? If yes, please give me some tips what I have to change that the analysis would be more accurate. 

 

Technical analysis still works but the difference is that there is more fundamental analysis involve like news, roadmaps and updates to the project. In stocks, there are certain prices that a trader looks at like round numbers or looking at fibonacci retracements but in crypto it still apply but more often than not it is bypass because there are so many pumps and dumps happening. Many traders are more focus on news than the technicalities of it though TA still works but it has a less percentage being effective than in stocks do. In stocks, usually the traders have large capital that's why a news that is still unverified may not move the market but in crypto, a single unverified news can move the market because of herd mentality.

I agree with what our friend said

;  with the technical issues, but on our side we have more emotional communication with you. I do not think classical Trade methods will be much more effective in this regard, as developments in meetings are open to innovations or thefts, but I do not think it is too much to try and misunderstand. I Love Butterfly Effect leaves nice pips

[metenjean]

Hello to everybody,

I have question about chart analysis. Are there any differences betwen chart analysis in traditional stock exchange and crypto exchange?  Considering that the crypto exchange is much more emotional in decision making? Can we use exactly the same analysis techniques or do we have to adjust them to our crypto reality? If yes, please give me some tips what I have to change that the analysis would be more accurate. 

I think there is no difference between any chart analysis whether its stocks, forex, or crypto exchange. What matter is the volatiliy because every chart analysis start mostly with technical and not any fundamental issues and it depends basely on the chart price and candlesticks movement. In my experience, emotion occurs based on wheter you feel comfortable placing your hard earned money without any protection or you're confident enough with an entry and exit plan in every transaction you've made. And yes i pretty much sure that we can use the same analysis techniques on every chart

[coinalyze]

hey guys, once you come to a conclusion that either there is a difference or not you can use this tool https://coinalyze.net/ to do your chart analysis

[Maveth13]

Well technically, you still can. But you can't always rely on them in cryptocurrency trading. The main reason is the volatility of cryptocurrencies, it can easily be affected by massive buying and selling or pumps and dumps.

[mobnepal]

Yes technical analysis skills from forex trading can be also used in analyzing crypto charts. Most of the elite crypto traders were forex traders before, they got attracted towards crypto because market is more volatile than forex and they can make profit every day on price swings.

Crypto market is still driven more by emotion and psychology decisions than forex.