Question about technical analysis

[iSasuke]

Hi all,

When you analyze a chart, do you combine ichimoku, trendlines, MA,... to make desicion? Or do you stick with one techniques throughout? What are the pros and cons of only doing one technique? Thank you.

[1713250787]

1713250787

[Lakai01]

I would recommend you to follow @philakonecrypto on twitter. He has a bunch of tutorial vids which will answer all your questions concerning charts!

[wvizmanos]

There's a lot of tools available out there other than the ones you mentioned. And not everyone is using ichimoku because there are a lot of alternative tools available that's easier to follow. I suggest you try using the easier ones and try to combine them with other useful indicators but  not to the extent of cluttering your chart.
But IMO all these tools are worthless at the current market condition.

[Jet Cash]

You need to be creful using techical analysis for speculative decisions. It is obvious that the market is being manipulated at the moment, and technical analysis tends to be self-fulfilling on many occasions. This means that TA is a great tool for the manipulators to use to amplify their actions.

[Raypok]

If you want to apply TA correctly i advise you to read some good books about it first. Then choose a method that suits your style of trading and start papertrading it to train yourself. Log the papertrades in a journal, analyze the trades and make adjustments in your style if necessary. Only if you feeling confident enough take it to the next level start trading it live. Then you will encounter the human emotion aspect of trading, when you put real money in the market! You have to learn to disconnect your emotions from your trading, otherwise you will end up making the wrong decisions.

TA is not something you learn overnight. You have to put time and effort in to master yourself.

I advise you to start reading these books in exact order:

1. Technical Analysis of the Financial Markets by John Murphy
2. Technical Analysis of Stock Trends by Robert D. Edwards and John Magee
3. Japanese Candlestick Charting Techniques by Steve Nison
4. Investment Psychology Explained by Martin Pring
5. Elliott Wave Principle by A.J. Frost and Robert Prechter
6. Encyclopedia of Chart Patterns - by Thomas N. Bulkowski

Don't get discouraged by my post. Knowledge is key for being succesfull.

Good luck with your journey!

[jseverson]

I guess they're better than nothing, but no kind of technical analysis can ever predict sudden news or developments, which can cause drastic movements by themselves. For some perspective, whenever a significant price drop or rise comes, everyone is so quick to ask what caused it, and no one ever has a definitive answer. Crypto price movements are unpredictable as a whole.

If you still want your decisions to revolve around analysis, I would simply suggest you play the odds and use the methods which work the most for you. There's no real reason to swear by a single one either. You can look at all of them and make an informed guess from there.

[hugeblack]

Technical Analytics = Read and analyze the past to predict the future.
In the past, I was following analytics like SMA, Fibonacci, ...etc.
Now I advise you to stop these analyzes because what happened in the past is not necessary to be repeated in the future.
Just follow the news you will get better results.