Acquisition of trade in cryptocurrency with technical analysis
The world of cryptocurrency trading is fast and unpredictable. As decentralized coins such as Bitcoin, Ethereum and others increase, merchants are constantly looking for new ways to gain benefits in this room. Effective techniques used by traders to navigate cryptocurrency volatility are technical analysis (TA). In this article, we will explore how to use technical indicators for daily trade in cryptocurrency.
What is the technical analysis?
Technical analysis is a method for evaluating financial markets based on historical data and diagram models. This includes a diagram analysis to predict future price movements, not based solely on the basic analysis or feelings based on feelings. Technical analysts analyze various indicators such as the mobile environment, the relative resistance index (RSI) and Bollinger bands to identify trends, support and resistance and possible buying or selling signals.
How to use technical analysis for daily trade with cryptocurrency
1
Select a graphics platform
: You will need a reliable graphics platform to accept the cryptocurrency to use the technical analysis. Some popular options are tradingview, metatrader 4 and cmc markets.
- Select a coin pair
: Identify the cryptocurrency pair you want to market. For example, if you look at Bitcoin (BTC/USD), you can use BTC/USD on the diagram platform.
3
Open the schedule : Open the selected currency schedule and analyze it using technical indicators.
- Identify models : Look for models like:
* Trends: Long -term trends such as upturn or downward, which may indicate possible buying or selling signals.
* Support and Resistance Levels: Identify the levels at which prices tend to jump with possible support or resistance zones.
* Indicators such as RSI, Bolninger Band and Moving (MA): These indicators can help you evaluate the market feeling and predict price movements.
- Analyze the graphic candles : Explore the graphic candles to identify:
* Bullish or bear candles: This indicates a possible change in trends.
* Bear Change Models: Look for models such as a hammer, shooting star or head and inverted shoulders that may indicate a possible trend change.
- Use chart tools : Use improved schedule to analyze market data such as:
* Volume analysis: It helps you understand market feelings and price movements.
* Market feelings: For example, a relative force index (RSI) or a standal oscillator that may indicate the market treatment of a certain asset.
- Decide on trade : Based on your analysis, decide on trade using the indicators you choose and chart models. You can use:
* Buy signals when prices fall over the aid level or reach new peaks.
* Sold signals when prices fall below the resistance level or lower to lower minimum values.
Example: Bitcoin (BTC/USD) Technical Analysis
Let’s look at the BTC/USD pair of tradingview using some technical indicators:
- Mobile environment : 50 days MA is $ 33,500, but MA 200 days is $ 32,000.
- Relative resistance index (RSI) : RSI is currently 70 years old, indicating overload.
3
Bollinger Strip : The upper bar Bollinger has reached a maximum level of $ 36,000 and is now below the lower lane.
Based on these indicators, we can identify:
- Changing a potential trend as the price is reduced for more than 50 days (purchase signal).
- Excessive conditions due to RSI reading over 70.
- Bear candle models in the last few days, pointing to a possible change of bear.
Conclusion
Technical analysis provides a strong tool for merchants who want to navigate the complex and unpredictable trade in cryptocurrency.