i wrote another post about this you may would find helpful.. we were discussing if technical analysis was useful or not, i put some things i like vs dont like, and weight how useful I feel it is.
Do you believe in the reliability of information obtained by technical analysis on crypto-currency market?
TL:DR Yes and No.. it depends on the coin..and even if it helps.. common sense and avoiding emotional trading like fomo/fud/greed will take you alot further, especially as a noobie.
I do believe fundamental technical analysis works but only when other traders use it as a basis too... I think BTC/USD for example has high enough volume and enough millionaires/professionals where'd they'd all basically see the same indicators and tools giving them buy and sell signals so it becomes sort of a self fulfilling prophecy.. If you day trade BTC or ETH/USD, fibonacci levels or "just under" seem to play out very well with entry and exit points.. larger broader trades using moving averages and ichi cloud seem to follow stock indicators atleast in a general sense.
The problem with alt coins and btc/eth pairs is when you use technical analysis with these. there tends to be an extra moving part.. because the volatility of the alt coin also primarily goes up and down vs the price of the coin you're purchasing with.. which is often not found in traditional technical analysis since the price of traditional currency is way less volatile. Any TA can fall apart in seconds if BTC is bull running or dropping.. so the only real way to really use TA in these types of markets is to use it to judge what BTC/USD is going to do, and use that as the primary buy and sell indicator of your favorite alt coins. You can have a lot of success in alt coins I feel if you can move to BTC fast enough based off of things you see through technical analysis on the BTC chart, because you're moving one step ahead of the best revolving position...Think BTC won't break 9200 USD and we'lll spiral down to 6000 USD again or lower? You could move to USDT to buy BTC at that price again and alts will be waiting for you 50% off.. so the risk you take could net you 50%+ gains just reaching the correction price.. which is the safest of all sell zones to reach again (any price thats happened in the past will be exponentially more likely to be reached again over speculative all time highs).
Anyways.. as far as BTC TA (or even alt coins TA, but ALWAYS have BTC/USD Bitfinex on tradingview open while trading alts at all times so youre monitoring what the king is doing to help/hurt your trade's cause).. I try not to overcomplicate my predictions.. (breaking supports for profit - See Quickfingers Luc youtube videos this guy explains safe buying zones using nothing but resistance support for basic day trading, really good)
Ones I find useful
Moving Averages on the Day Chart (50/100/200 Day) - I value this one the highest.. its simple, and allows at a glance of scanning coins what has pulled back enough from runups that may be worth looking at if other indicators seem positive
Fibonacci retracements for buy and sell zones (just ideas on where to look for resistance levels to take profit, always leave the areas a bit lower, since everyone uses these to sell as zones, hence the more who use TA, the more of a self fulfilling propechy it becomes.
Bollinger Bands (sometimes I use these just to see how tightly wound things are getting when trying to break out from descending wedges/bull flags/etc.
MACD and RSI (just a quick indicator to pair with others to confirm the information the other indicators are showing me)
Ichimoku Cloud - Love seeing the overhead resistances and when on bull runs if its starting to fall flat.. this indicator isn't good on its own but like using with others.
Things I don't find useful:
Elliot Wave Theory - I can certainly appreciate the concept and I think overall the general concept of any 1-5 wave will lead to an ABC correction in a general sense is good, but as a predictive price to buy or sell at, it seems way too optomistic 99 times out of 100 to me. When chasing coins on a pullback however I do wait for the confirmed C pattern to form.. the problem is large runups can lead to a very long C extension (especially when paired to BTC acting up) so its just best to wait for confirmed reversal pattern over trying to buy based off of the measurement of C.
RSI alone - alot of people use RSI alone for whatever reason which I don't feel is a good idea.. it can in a general sense show if something is overbought or oversold, but something can rally oversold for days or weeks..btc in 2017 is a good example... if you sell when something is overbought or buy when its oversold, youre gonna miss alot of the tops of runups and get cut by the falling knife as it just becomes even more oversolid.. wait for other indicators to confirm what the RSI is telling you.
Anyways I do find some of the tools useful, but like all things nothing is always a perfect science. Even if you think TA is complete garbage.. use common sense when trading.. do not buy things in parabolic runups and dont buy coins all at once price (make sure to ladder into positions so you cost average.. and YES sometimes that means you will miss some of the bottom). At the end of the day I think TA can help you min/max your results with some practice.. but most of the gains comes from using common sense... buy low sell high and not fomoing or getting too greedy or panicking. If you are a new person work on managing your emotions and common sense first then work on perfecting your TA later.
