Technical Analysis Techniques For Crypto Traders
Technical analysis techniques for encryption traders
The world of cryptocurrency trade has become increasingly complex and prices float quickly and unpredictably. As a result, traders require technical analysis techniques to make informed decisions and remain at the forefront of the market. In this article, we will explore some of the most effective technical analysis techniques used by encryption traders.
1. Graphic patterns
Graphic standards are a key tool in technical analysis, used to identify possible price movements and trends. Here are some common graphic patterns used by encryption traders:
* Head and Shoulders : A high or bassist pattern that is formed when prices reach the upper or lower end of a range.
* Triangle patterns : A side pattern formed when prices jumped together, indicating a possible investment in the trend.
* GUBLFO ENGULFO : An investment pattern in which the price is broken below the previous minimum, indicating a downward trend.
2. Indicators and oscillators
Indicators and oscillator are technical tools that help traders evaluate impulse and market trends. Here are some popular:
* Mobile Average (MA) : An average price time for a specific period used to identify trends and outbreaks.
* Relative Strength Index (RSI) : An impulse indicator that measures the speed and change of price movements, indicating a possible overtime or contest.
* Bollinger Bands
: An indicator based on volatility that attracts two moving averages with standard deviations used to measure market risk.
3. Trend lines
The trend lines are lines drawn on graphics that connect the lowest and highest points of a trend. Here we show how to use them:
* MOCD Average Convergence Divergence (MACD) : A line that compares the speed of two trends used to identify possible reversals.
* Stock oscillator : A current price rate for your 14 -day moving average used to measure the impulse.
4. Support and Resistance
Support and resistance are levels at which prices tend to jump or run in certain directions. Here we show how to use them:
* Support levels : The lower level than a price plays before recovering.
* Resistance levels : The highest level that touches a price before correcting.
5. News and Feelings Analysis
News and feelings analysis helps traders evaluate market reactions to important events. Here are some sources of news:
* Blogs and online articles : Good sources of reputation, such as Coindesk, Bloomberg and CNBC, provide valuable information about market trends.
* Social Networks : Follow leaders and influential industry on Twitter, LinkedIn or Facebook to stay informed about market developments.
6. Sailing Patterns
Sailing patterns are graphic representations of price movements that help traders identify possible reversals. Here we show how to use them:
* Hammer Standard : A high standard where the price forms a hammer form.
* Star Tiring Standard : A low standard where prices form a fleeting form.
7. Price Action Analysis
Price action analysis implies the study of price flow during an exchange, using techniques such as graphic patterns and indicators to identify reversal or possible sequels. Here we show how to analyze the price action:
* Price Okay : Study the price action after rebounds as they may indicate a reversal of trends.
* Volume signs
: Analyze volume patterns, such as increasing or decreasing volume during sprouts.
8. Technical Indicator Deglos
Breaking the technical indicator implies analyzing each technical indicator separately to understand their strengths and weaknesses. Here we show how to analyze the indicators:
* Indicator overlap : Compare the performance of different indicators.
* Crossovers Indicators : Analyze when indicators cross as they may indicate a potential reversal.
** 9.