Why it is possible to predict price movement?

[d_nova]

This sounds a simple question, but it is not indeed. There are a lot of trading methods claim working. Nevertheless, I wonder in general what logic these methods based on in predicting price movement.

Can anyone give me a good answer?

Thanks

[1714922467]

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[1714922467]

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[1714922467]

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[BaseFEX]

This sounds a simple question, but it is not indeed. There are a lot of trading methods claim working. Nevertheless, I wonder in general what logic these methods based on in predicting price movement.

Can anyone give me a good answer?

Thanks

Two terms:

Fundamental Analysis https://blog.liquid.com/how-to-do-fundamental-analysis-for-cryptocurrency
Technical Analysis https://cryptopotato.com/bitcoin-crypto-technical-analysis-beginners/
Most of the time traders apply TA more since FA is largely stable for a period of time.

[semobo]

This sounds a simple question, but it is not indeed. There are a lot of trading methods claim working. Nevertheless, I wonder in general what logic these methods based on in predicting price movement.

Can anyone give me a good answer?

Thanks

There are ways to predict the price movement of crypto currencies mostly using technical analysis but still its not sure that the prices will move as we predicted that is why cryptos are more unpredictable no matter if it is short term or long term.

There are many predictions and methods discussed on the speculations section.

[arpon11]

This sounds a simple question, but it is not indeed. There are a lot of trading methods claim working. Nevertheless, I wonder in general what logic these methods based on in predicting price movement.

Can anyone give me a good answer?

Thanks

I have been pointing pin bar candlestick formation as the most accurate signal of market reversal. It might be very difficult for some people to identify that but if you can trained your eyes to point that out on a daily chart as a long-terms traders or 30 minutes chart as a day trader you have had gold in your hand! We have many strategies out there but candlestick formation has printed the best trading information or price action to me.

[SvonioneFromMangoCoinz]

This sounds a simple question, but it is not indeed. There are a lot of trading methods claim working. Nevertheless, I wonder in general what logic these methods based on in predicting price movement.

Can anyone give me a good answer?

Thanks

It depends more on the trader's knowledge. because only readers who read a lot about trading, can identify the candles that can reverse or show the psychology of buyers and sellers.
In order to accurately predict prices, you should take a trading course.

[Jating]

This sounds a simple question, but it is not indeed. There are a lot of trading methods claim working. Nevertheless, I wonder in general what logic these methods based on in predicting price movement.

Can anyone give me a good answer?

Thanks

What is Technical Analysis?
Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume. Unlike fundamental analysts, who attempt to evaluate a security's intrinsic value, technical analysts focus on patterns of price movements, trading signals and various other analytical charting tools to evaluate a security's strength or weakness.

https://www.investopedia.com/terms/t/technicalanalysis.asp

So that's one method that speculators used to be able to predict the price movement of crypto. However, let me tell you that it is not a guarantee that those analysis are 100% correct.  Others used fundamental analysis and the overall sentiments of the traders.

With that said, no single method can be used here and most of the time speculators are just making a wild and educated guess. The market is based on pure speculation that's why the price is very volatile and really hard to predict unless you have a crystal ball.

[MonsterV]

Two terms:

Fundamental Analysis https://blog.liquid.com/how-to-do-fundamental-analysis-for-cryptocurrency
Technical Analysis https://cryptopotato.com/bitcoin-crypto-technical-analysis-beginners/
Most of the time traders apply TA more since FA is largely stable for a period of time.

Good, that is some basic analysis on trade. But you forget that analysis of market sentiment is also a consideration in trading. Market sentiment analysis is usually done more frequently on forex market and seldom done by traders in crypto market, because in crypto market, fundamental and technical analysis is much higher in accuracy.

Market Sentiment Analysis: https://www.investopedia.com/terms/m/marketsentiment.asp

[Theb]

They say that technical analysis is more of studying the numbers in order to forecast the future price but the truth is it's more of a lesson about human behaviour. Think about it this way we try to interpret the candlesticks the volumes and other indicators we see and try to interpret it on where the asset will go up or down. Volume increasing daily can translate into traders are buying more position, a doji can be interpreted as an uncertainty for traders. Rather than think about TA as a complicated topic think about it as a Psychology subject in which you try to understand what traders will do next in the market.

[gantez]

Most times, technical analysis captures the area of price movement. Technical analysis is very instrumental for market prediction, is a little accurate than fundamental which does not last a longer time. Technical is usually obeying the future market price at a long time.

[jeraldskie11]

Sometimes if we are not expose in knowing what trading is we can say that it's impossible to trade the right timing by only predicting. But in the fact, many people are getting rich and make it as there full time job. So that it is reasonable we can really predict the price movements, all we need is to study in how to be successful in trading.

[Slow death]

People try to predict what the price will be and there is a good chance that forecast is wrong. look at this price analysis:

Bitcoin Eyes $9K Price Support After Drop to One-Month Lows

in two weeks read this same price analysis article again. Then you learn technical analysis and fundamental analysis and try to predict the price. you will realize that it is not an easy task

[BitHodler]

there are two analysis technical and fundamental technical , both are being used by tracking past data in to see how project is performing and what factors will affect the price in future and what is current problems and developments in project and predict a possible target price can reach  

Fundamentals don't really play a role of importance. Bitcoin pumped to $20k on very poor fundamentals, then tanked to $3000 on improved fundamentals with SegWit activation and LN gaining some traction.

Fundamental analysis is helpful when you try to look two or three years ahead, but is near worthless in the short term unless we have an event coming up such as the block halving which usually causes the price to become more active.

[1Referee]

So that's one method that speculators used to be able to predict the price movement of crypto. However, let me tell you that it is not a guarantee that those analysis are 100% correct. 

Yup. Technical analysis is subjective. Charts are quite flexible and can be shaped the way you want them to be. Currently I am focusing on a large decending triangle on the daily, but some others are focusing on a bullish flag that's playing out, and so there are a few more patterns. The million dollar question is; who will be right?

Most people either can't accept being wrong and for that reason keep their positions open thinking they can still profit (which usually leads to liquidation), or they try trading once, fail, then consider technical analysis to be bs. Not sure which of the two is worse though.