Introduction to Crypto Technical Analysis - Trade Your Coins Wisely

[crwth]

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 Analysis

When 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/

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[Bitum]

Best evidence ads you can do and understand crypto market would be a link to your portfolio, otherwise it's just a lyric

[miropp]

I believe that traders should use all aspects of trading, this will help to trade most successfully. I also very often focus on stochastics, it helps me a lot.

[TomArayaSlaya]

Thanks for the great strategies i will surely follow the blog for more on this and i hope it helps those with a feeling of getting into trade probably the best start up guide i have come across

[Zadicar]

Best evidence ads you can do and understand crypto market would be a link to your portfolio, otherwise it's just a lyric

No need actually yet everyone can post up these informations which wont need or necessary for them to post up their profitability.If they do then they wont surely mind on posting something useful.
Im not a technical type of trader but sometimes i do make use of these indicators.

[Jannn]

Best evidence ads you can do and understand crypto market would be a link to your portfolio, otherwise it's just a lyric

VERY GOOD, HAHAHAA SO TRUE  +1

[crwth]

Thanks for the great strategies i will surely follow the blog for more on this and i hope it helps those with a feeling of getting into trade probably the best start up guide i have come across

More guides will go up for sure, I'm planning to write a lot of topics that could cover a lot of trading basics.

Best evidence ads you can do and understand crypto market would be a link to your portfolio, otherwise it's just a lyric

This is not a selling post, it's an educational one. If you can't understand the difference, it's not on me.

If you are interested, I could provide you evidence if you want. Then if you are just interested in numbers, then you have no knowledge at all in trading. You need to learn more about this topic than I do.

VERY GOOD, HAHAHAA SO TRUE  +1

Same as you. I hope you understand I'm trying to share knowledge and it so happens to coincide with the tool that I use.

[Lakai01]

I started to disbelief that TA really works for such emotional, news driven and manipulated markets like the whole crypto market. I used to follow some well known analysts, none of them could predict the recent breakout from 4k to 5k. All of them are at best 50% right with their predictions, so its just plain guessing in my opinion

But thank you very much for your guide, very informative if someone wants to get into TA!

[adaseb]

Best evidence ads you can do and understand crypto market would be a link to your portfolio, otherwise it's just a lyric

10 years ago when I started trading I viewed all those PDFs, audiobooks, ebook, seminar videos, courses, etc from "professional traders" and basically what I found is this.

Most of the people who were selling books to teach trading, never actually made any money trading. However they were good marketers and sometimes were good teachers.

The traders who know how to make money on their own, they don't waste their time selling ebooks when they can make 10x as much just by trading themselves.

[Ailmand]

This one is educational and informative. It would be a guide for new traders these days especially those who are looking for helpful tools to learn about trading. Technical analysis is important in trading and if is being used by pro traders but even new traders could learn about it.

[crwth]

I started to disbelief that TA really works for such emotional, news driven and manipulated markets like the whole crypto market. I used to follow some well known analysts, none of them could predict the recent breakout from 4k to 5k. All of them are at best 50% right with their predictions, so its just plain guessing in my opinion

In reality, that's just how it works. TA would just improve your chances with predicting the possible movement. It's hard predicting that. It's better than knowing nothing and blindly going in on a trade.

10 years ago when I started trading I viewed all those PDFs, audiobooks, ebook, seminar videos, courses, etc from "professional traders" and basically what I found is this.

Most of the people who were selling books to teach trading, never actually made any money trading. However they were good marketers and sometimes were good teachers.

The traders who know how to make money on their own, they don't waste their time selling ebooks when they can make 10x as much just by trading themselves.

There are a lot of people showing actual results and you might believe them. What I'm basically doing it showing enough stuff that traders use. If they want to trade automatically I will support you especially when you buy Gunbot from me,  but if you didn't, then it's not my loss. I'm just sharing how you could do TA. I'm not even forcing anyone to buy. Lol, that's the funny part.

This one is educational and informative. It would be a guide for new traders these days especially those who are looking for helpful tools to learn about trading. Technical analysis is important in trading and if is being used by pro traders but even new traders could learn about it.

It is the challenge that every newbie will undergo, knowing different types of indicators, how to use it, what does it indicate, etc. With the use of a Trading tool like Gunbot, it makes learning easier and how you could utilize different indicators and strategies.

[Haunebu]

Appreciate the guide. Helped me learn some stuff. What is your opinion on VIX indicators op? Some people are claiming that big wigs like Warren Buffet made a lot of money through such indicators though I don't believe it.

What do you think crwth?

[Lakai01]

I started to disbelief that TA really works for such emotional, news driven and manipulated markets like the whole crypto market. I used to follow some well known analysts, none of them could predict the recent breakout from 4k to 5k. All of them are at best 50% right with their predictions, so its just plain guessing in my opinion

In reality, that's just how it works. TA would just improve your chances with predicting the possible movement. It's hard predicting that. It's better than knowing nothing and blindly going in on a trade.

Of course, it helps that you dont run blindly into trades. But with a chance of 50% that a TA is right flipping a coin does this with the same accuracy, too
Dont get me wrong, I believe that TA is a very powerful tool in traditional markets, but from my experience (since early 2015) I dont think it works better than guessing in the crypto space!

[crwth]

Appreciate the guide. Helped me learn some stuff. What is your opinion on VIX indicators op? Some people are claiming that big wigs like Warren Buffet made a lot of money through such indicators though I don't believe it.

What do you think crwth?

It's my first time hearing the VIX indicators. I did research on it but I think it would take time for me to improve and know any more about it. When I first saw it, I saw the stock VIX. I thought it was already there. Anyway, if I'm correct, it uses a MA of 200 and when it touches 200, it moves in a certain way. I think this is a great resource. I found it here.

https://www.outsiderclub.com/report/how-to-profit-using-the-vix-indicator/956

I'm not sure if that it, but I would research more on that.

~snip
Of course, it helps that you dont run blindly into trades. But with a chance of 50% that a TA is right flipping a coin does this with the same accuracy, too
Dont get me wrong, I believe that TA is a very powerful tool in traditional markets, but from my experience (since early 2015) I dont think it works better than guessing in the crypto space!

Yes, in a 50-50 scenario, it would be hard not to take a chance to improve it more with analysis. Or maybe it's just overthinking? Lol

[traderethereum]

But still, I guess the VIX indicator is very hard to understand, and I think that is for an intermediate lesson for people who already know deeper about trading. I also visit on the page you mention, but it's too complicated for me, maybe I can't understand right now, but it's a good lesson for everyone who wants to improve their skills and use new skills in trading.
I prefer to use Bollinger Bands first and try to know how it works until we can master the indicator and then we can continue to learn another difficult indicator. That will help you to improve your skills.

[vit05]

The traders who know how to make money on their own, they don't waste their time selling ebooks when they can make 10x as much just by trading themselves.

There is a limit to how much money you can get to contribute and work in the market. In addition, in the traditional market there is the time limit. Selling courses, giving lectures and mainly individual coaching are activities of very low cost and high profitability.

Only the very successful traders have no profit selling courses and these other services. But the traders who are in the media, it makes sense to try to dry more money by other means.

[StarofBTC]

Best evidence ads you can do and understand crypto market would be a link to your portfolio, otherwise it's just a lyric

VERY GOOD, HAHAHAA SO TRUE  +1

What is so true about what he has just said because I have not seen anything tangible to grab from the comment other than the one the OP has posted, even if it was a means of AD, at least it has successfully educated a lot of people, especially newbies and despite my long years of trading, I have still been able to grab one or 2 things from the article.

Lest endeavor to always pick out positive out of the negative, we have negative minds towards the market, we still have negative approach too towards a little educational write up, is there anything we don’t get emotional about?

[Bitinity]

Appreciate the guide. Helped me learn some stuff. What is your opinion on VIX indicators op? Some people are claiming that big wigs like Warren Buffet made a lot of money through such indicators though I don't believe it.

What do you think crwth?

It's my first time hearing the VIX indicators. I did research on it but I think it would take time for me to improve and know any more about it. When I first saw it, I saw the stock VIX. I thought it was already there. Anyway, if I'm correct, it uses a MA of 200 and when it touches 200, it moves in a certain way. I think this is a great resource. I found it here.

https://www.outsiderclub.com/report/how-to-profit-using-the-vix-indicator/956

I'm not sure if that it, but I would research more on that.

It would be nice if you can learn about it and share your opinion about VIX indicators. Previously someone says that it is easy to make money with this indicator but too bad he did not even tell more details about how this indicator works. Waiting for your update about what you learn about this. TY

[enhu]

Never heard of VIX indicator. RSI has been very helpful but it does have to be verified with some other indicators which you have to see whether the fibo correlates with what it shows. As for now, no one yet have show any trading system that works with RSI which is supported by the MAs to help you decide whether to go long and short. But then the real problem with technical analysis is that it doesn't work withe a massive fud from the users.

[Gozie51]

RSI has been very helpful but it does have to be verified with some other indicators which you have to see whether the fibo correlates with what it shows.

RSI is one of the important indicators to use in trade if you understand it very well. You can also make use of it with moving average in a way that you will be surprised what work it does.