Topic: Basics of Technical Analysis (Read 193 times)

Basically having the analysis was not based at all with the graphical analysis, but also with the reality of the price movement. That mainly served as our monitoring as per review of the previous market trend, and the actual effect here was for the recent drive on our trading decisions. Because some traders always prefer their goals or timelines on when to trade their assets regardless of graphical trend monitoring.

Basic technical analysis should include a fibonacci retracement or a Gann fan as well.. it works because everyone uses them, and you can recognize pass/fail areas for price action and not be guessing in between the lines in no man's land.   

It makes the platform and market able to be followed, predicted, analysed and colourful too. At least, it gives traders something to handled. I wonder how market would have been monitored if everything was left blank..

The basic technical analysis is applied to any kind of trade, and it used by every trader, not just the newbie one. Technical analysis is an essentials tools in trading without it I'm sure the trade has a high chance of failure.

The trading techniques have been broad now. This is just one of the basics which is mostly used by small traders or those who are just starting their profession to be a trader.

I have used it before and still using it now. I do not want to go to different types which just confuse me more.
Short, long and so on and on.

I bet 90 percent of the users here have used this kind of technique when they are also newbies in trading.

The OP says are very useful for those who don't know about the technical analysis, it's a basic but it will give an information to other. One thing you should not give your 100% trust, crypto is unpredictable.

I believe that the market is the same everywhere, but it is the cryptocurrency market that allows you to learn to see patterns and their development later

Trading is a very demanding and tasking activity. Whether you are trading Digital currencies, national currencies, shares, bonds, stocks. It requires knowledge of that market, and available data and how to utilize information to make correct speculations on future price.

What is technical analysis?

Technical analysis is trading technique which relies on market actions to predict future market movements.
It relies on combination of factors like, charts, market value, market history, trading volume, and trends.

Basically, technical analysis means using the past to predict the future.

Foundamental analysis is also a trading strategy which relies on project foundamentals, developmental stage, upcoming news and updates, and major annoncements and how this factors impact the market, and attempts to predict the reaction.

When using technical analysis to attempt to speculate on the market, there are key points to consider;

- Charts and Trends: Charts show the market movements. You can set it to your desired time frame, 24 hours, a week etc. You'd need to do more research on this to learn how to properly read charts and use it to predict the market.

Trends shows the market reaction at key points in time. For example, the cryptocurrency market is believed to drop when most traders go for summer vacations during August and the rise when they return around late September. With this you can speculate on how the market would react at specific points in time and to specific events.

- Support and Ressistance : Support in a chart is that point during a dip, where the value doesn't drop lower but rather holds and possibly bounces back. It's mostly caused by my traders who buy at the dip and supports the value.
The ressistance on the other hand is that point in a rise where the value doesn't go higher buy rather holds or drops. It's at this point most of the traders who bought lower down sell of to the late followers and dumps on them. The heavy supply could cause a sharp drop.
With knowledge of this you can predict the price movements at specific points in the chart.


- Moving Average : This is also a very important factor to consider. Moving average is similar to a chart, but it shows the average of the market ride or drop over a longer time, a week or a month. It is the average of the daily closing value over a specific time. I t gives a broader view of the market
They are of two types,
1. Simple Moving Average
2. Exponential Moving Average.

- Trading volume: Trading volume is the amount in circulation in the market. The trading volume gives you an idea of the level of rise the market can support or drops it can withstand.
A large trading volume indicates a stable market which can resist manipulations. A low trading volume is a market which is largely unstable and very subsceptible to market forces and manipulations.

Technical analysis is a very broad subject, and it is invaluable to a trader in his/her quest to be successful.
Dow theory provides a lot of useful knowledge and information in trading https://en.m.wikipedia.org/wiki/Dow_theory

Good luck