cryptocurrency: technical analysis for investors
The cryptocurrency world is a fascinating and rapidly evolving market since its creation. The demand for technical analysis tools to help investors the cryptocurrency world.
** What is technical analysis?
Technical analysis (TA) is a method of assessing financial markets using historical price data, graphs and other technical indicators. It is a question of analyzing the models, trends and relations between different elements of the market to predict future prices. TA is based on the main value over time.
Types of technical analysis
Cryptocurrency trading:
- Graphic models :
- Indicators :
- Trends
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common technical indicators used in the trading of cryptocurrencies
Here are some common technical indicators used in the trading of cryptocurrencies:
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- Relative force index (RSI)
: A measure of the strength and momentum of the price movement of an asset.
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- Divergence of convergence : The difference between the MA in the short term and the MA in the long term, indicating when the price is about to change direction.
How to use technical analysis in trading of cryptocurrencies
Here are some steps to follow when using technical analysis in the trading of cryptocurrencies:
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- Draw a cart : Draw a graph with your chosen indicator (s) and calculate the support and resistance levels.
- Analyze the models : Analyze the models of your graph, looking for purchase and sale signals according to technical indicators.
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- Monitor performance : Continuously monitor your trading performance, by adjusting your strategy if necessary.
Advanced technical analysis techniques
Here are some advanced technical analysis techniques used in cryptocurrency trading:
- Fibonacci retracement levels: a set of levels that the numbers of fibonacci converge towards
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- Momentum analysis :
Conclusion
Technical analysis is a powerful tool for investors in the cryptocurrency world. By understanding the basics of technical analysis, you can use it informed decisions when buying and selling assets. Do not forget to stay up to date with news and market trends, adjust your strategy if necessary and continuously monitor your commercial performance.