Technical analysis techniques for encryption traders
The world of cryptocurrency negotiations became increasingly complex, with prices floating rapidly and unpredictably. As a result, traders require technical analysis techniques to make informed decisions and stay ahead of the market. In this article, we will explore some of the most effective technical analysis techniques used by encryption traders.
1. Graph patterns
Graph patterns are a key tool in technical analysis, used to identify potential price movements and trends. Here are some common graphics patterns used by encryption traders:
* Head and shoulders : An optimistic or low pattern that forms when prices reach the upper or lower end of one interval.
* Triangle patterns : A lateral pattern formed when prices move away, indicating a potential reversal in the trend.
* Low engulfing: a reversal pattern where the price breaks below the previous low, signaling a downward trend.
2. Indicators and oscillators
Indicators and oscillator are technical tools that help traders evaluate the moment and market trends. Here are some popular:
* Mobile Average (MA) : A weighted average price time for a specified period used to identify trends and leaks.
* Relative Strength Index (RSI) : An indicator of a moment that measures the speed and change of price movements, indicating possible sales or bids.
* BOLLINGER BANDS : An indicator based on volatility that plots two moving averages with standard deviations used to assess market risk.
3. Trend lines
The trend lines are lines drawn on graphics that connect the lowest and highest points of a trend. See 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 proportion of the current price and its 14 -day moving average used to evaluate the moment.
4. Support and Resistance
Support and resistance are levels where prices tend to jump or correct in certain directions. See how to use them:
* Support levels : The lower level than a price plays before jumping back.
* Resistance levels : The higher level than a price touches before correcting down.
5. News and Feelings Analysis
News and feelings analysis help traders evaluate market reactions to important events. Here are some sources of news:
* Blogs and articles on -line : Respectable sources like Coindesk, Bloomberg and CNBC provide valuable information about market trends.
* Social Media : Follow industry leaders and influencers on Twitter, LinkedIn or Facebook to stay informed about market developments.
6. Cunning Patterns
Candle patterns are graphic representations of price movements that help traders identify possible reversals. See how to use them:
* Hammer Standard : A high standard where the price forms a hammer form.
* Star shooter standard : A low standard where prices form a shape of shot star.
7. Price Action Analysis
Price action analysis involves the study of price flow during an exchange, using techniques such as graphic patterns and indicators to identify possible reversals or sequels. See how to analyze the price action:
* Price jump : Study the price action after jumping, as this may indicate a trend reversal.
* Volume tips
: Analyze volume standards, such as increasing or decreasing volume during breaks.
8. TECHNICAL INDICATOR PARTING
Breaking the technical indicator involves the analysis of each technical indicator separately to understand their strengths and weaknesses. See how to analyze indicators:
* Indicators overlap : Compare the performance of different indicators.
* Crossovers Indicators : Analyze when indicators cross as they may indicate a potential reversal.
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