Topic: best type of analysis to use (Read 276 times)

type analysis in my opinion is not too important anymore because for now the most important is good news and there are developments from the coin you buy because if there is no progress or good news from the coin is definitely the price will be difficult to up.

For me the best analysis which i have to do before trading is regression and correlation among two different coin and through their price difference many things we can measure these through different ways and now if we help from charts in trading that is very helpful now  days personal analysis is vary from person to person and it is good to be in touch with the present market.

Every one is good at something and he/she is more comfortable with some of them , you need to find what is suits you best , You don't need to be a imitative , sometimes i get better result with a way that it doesn't work for you so much , all of these ways are just based on possibilities , there is no certainty  in possibilities world.

There is no 100% accuracy when it comes to trading strategy. Trading analysis has to do with both technical and fundamental analysis. With technical analysis, you need to try price actions, trend line break-out, and support and resistance strategies. It is advisable not to use lagging indicators to analysis the market.

Trading analysis is only a prediction that being created by bunch of data and experience, it is not 100% accurate and will never be 100% correct, no matter how many indicator you used, the purpose of the trading analysis is to give you a better look of what happened in the market, if anyone can guess 100% correctly that person will be extremely rich, there are so many factors that can caused the indicator to failed

You are right, it is sometimes based on what others heard. I am very convinced that news is very powerful. When some of the big investors give news to what they are buying or what is the best ICO or best coins then some of the small traders and small investors will do the same.

Analyze meaning prediction, if analyze accurate I believe there's no loss. As long you understand the technic and how market works, you only need to fix your strategy by follow trend with stop loss. Most of us trust their method but never want to fix it, market always change my friends. Keep practice and fix it, simple isn't ?

I go for the regression approach for predictions. It serves me well since it carefully takes into consideration both dependent and independent variables. I studied this when I took my Master's Degree and it really changed my life. Everything is provided for already the moment you download the software in your laptops/desktops. All you have to do is to key in the data you have gathered. But you know, you have to have a thick data for it to better well work for you. Try it, and let me know how it goes for you.

No one can't be 100% accurate in trading because we don't know exactly what will happen in the future,so don't confuse about some lost trades everyone is losing some trades but all we have to do is make profits in longer term and learn from the mistakes which can help us to make profits in the future.

My trading analysis is based on both TA and fundamental analysis my opinion is based on the facts that every price movement of a Cryptos e.g bitcoin is triggered by a fundamental news while TA will indicates the appropriate time to buy or sell based on analysis and data provided by indicators although it might workout as planned everyday  but it's level of accuracy is perfect.

No such thing can give you 100% accuracy to trade with highest profit possible even with technical analysis that looks more scientific. Why? Simple, the market is unpredictable at certain times. The best method to use in trading is combining technical analysis and fundamental analysis. Both analysis can help you to see the whole picture of the market.

You're not going to find anything, markets go up and they go down. It happens -- there's nothing that you can do about it. It's going to happen. You can't try to predict the market, you can't try to find a good time to enter and a good time to exit. TA is used by people to reassure them of their own research, it shouldn't be used as your ONLY decision maker when it comes to trading.

Some people have their own methods, though I only LIKE to use holding as it seems to be the only thing which has worked on a long term basis.

use all your resources around you, combine both technical analysis and fundamental analysis
and even then you still can't be "100% accurate" you would still need to make an "educated guess"

He probably can get away with it, saved by accidental "complete copy-paste" with remnants links to chart images
his post has a few links back to the charts in its original source domain, it's all up to the mods how they perceive his post
I've reported something similar to this a month or so ago but mods never delete the reported post

Because it is impossible to be accurate about how the people is going to react about news, about how the market is developing by itself, and a lot of other stuff.

So no, there is no analysis that can help you out sometimes.

 I have trading plan in which I have made pending orders when buying and also set the selling orders which are the good way to exit the market and I think this is the best time to exit from the market,

try using the graphical analysis, keep an eye on the graph of the coin your training in to, if it reaches it soft cap at the ICO sale meaning that coin has potential, you got three choices if that happens , first sell it on the first exchange second is wait for it to reach its midpoint on the graph then sell it , last is wait for it to reach its hard cap , and profit more do the HODL  .

As @MinerHQ has pointed out, there no exact science to help you pinpoint the correct market trend. But personally, I only look at SMA. This is just a good guide personally for me and I make a good success out of it. Maybe I got lucky or something because I really don't believed that there is a TA tools that will really predicts such movement because we all know how volatile this market is. Probably just observed how the market goes and make used of your common sense.

Even 3 years long traders find it hard to profit Everytime and here you are asking for very effective analysis. The guy here is talking facts about trading because no one is an expert on trading even if they win millions of it because sometimes dumb luck appears out of nowhere in someone so that's what you get from me. I'm not giving salty AF just giving an honest opinion to those who ask impossible answers in this forum.

While bitcoin traders have many tools they can use to evaluate the cryptocurrency market, one of the most tried-and-true methodologies is what's called technical analysis. Using this approach, traders can get a better sense of market sentiment and identify key trends, and, with this information, make better-informed predictions.

Technicians (sometimes called 'chartists') take a practical approach, looking at a security's history (using price charts) and applying various analytical tools to get a better sense of how the market feels about that particular security.

While 'fundamental analysis' - the counterpart to technical analysis - is more interested in determining what a security 'should' be worth, technicians are only concerned with a security's actual price movements. By looking at bitcoin's price history, technicians attempt to identify well-known patterns such as 'support' and 'resistance'.

•    LAYING THE FOUNDATION

To get a better understanding of technical analysis, it is important to grasp the basic concepts of Dow theory, which has provided the foundation for this practical method for evaluating securities.

Dow Theory provides a few basic assumptions:

          1. The market discounts everything. All past, current and even future information is already factored into existing asset prices. In the case of bitcoin, this would include variables such as past, current and future demand, as well as any regulations affecting the digital currency.

The current price reflects all existing information, including the knowledge and expectations of all market participants. As a result, technicians seek to interpret what the price is saying about market sentiment to make educated predictions about what prices will do going forward.

          2. Prices movements are not completely random. Instead, they frequently follow trends, which can be either short-term or long-term. Once a security forms a trend, it is more likely to follow that trend than go against it. Through technical analysis, technicians seek to identify trends and profit from them.

          3. 'What' matters more than 'why'. Technicians focus more on a security's price history than the specific variables that have created this price movement. While any number of factors could have caused a security's price to move in a certain way, technicians take a more direct approach by looking at supply and demand.

         4. History has a tendency to repeat itself. Market psychology is predictable, and traders often respond the same way when provided with similar stimuli. Digital currency markets, for example, have frequently provided bullish responses to key events such as news evidencing rising adoption or greater visibility.

•    IDENTIFYING TRENDS
Identifying trends, or the general direction in which a security is moving, can be very helpful for bitcoin traders. However, singling these trends out can be a challenge. Digital currencies can be highly volatile, and looking at a chart of bitcoin's price movements will likely show a series of highs and lows.

However, technicians know that they can look past the volatility and identify an uptrend when they see a sequence of higher highs and higher lows. In contrast, they can single out a downtrend when they identify a string of lower lows and lower highs.

There are also sideways trends, in which a security experiences little in the way of upward or downward movement.

Traders should know that trends come in many lengths, including short-term, intermediate, and long-term.

•   MOVING AVERAGES

One technique bitcoin traders can use to more easily identify trends is to use 'moving averages', which help smooth out a digital currency's price fluctuations so market participants can get a better sense of where the price has been going.

The most basic kind of moving average is the 'simple moving average', which is determined by calculating a security's average price over a specific time period. Traders might look at what bitcoin has done over a five-day or 20-day period, for example.

A similar tool that bitcoin traders can use is the 'exponential moving average', which gives greater emphasis to more recent price values when calculating an average.

By analyzing moving averages, traders can get a better sense of when momentum shifts. For example, if a five-day moving average falls below a 20-day moving average, this development could point to a bull market turning bearish. Should the opposite take place, with the shorter average rising above the longer average, the converse is true.

  Chart 1: A five-day moving average (SMA 5) repeatedly surpassing a 20-day moving average (SMA 20):
               https://media.coindesk.com/uploads/2017/02/chart-5-day-SMA-rising-above-20-day-SMA.png

•   SUPPORT AND RESISTANCE
Another crucial tool is the analysis of support and resistance levels. By identifying these levels, bitcoin traders can help get a better sense of the supply and demand surrounding the digital currency.

The support level is effectively the price at which a large number of traders are willing to buy a security, since they believe it is 'oversold' (ie sold at a price below its perceived true value). As the security approaches this price, market participants step in and purchase it, creating a 'floor'.

For example, if bitcoin prices trade above $1,000 for several days, any retreat to this price level might prompt market participants to believe the currency is oversold and therefore start buying.
     Chart 2: Support level (in green): https://media.coindesk.com/uploads/2017/02/chart-support.png
                  The counterpart to support is resistance, which is a price level where a large number of traders are motivated to sell a security because they think it is 'overbought' (ie overvalued due to many traders buying at excessively high prices).

For example, if bitcoin prices trade below $1,000 for several sessions, moving toward $1,000 might prompt a significant number of traders to enter sell orders for the security, thereby creating resistance.

     Chart 3: Resistance (in green): https://media.coindesk.com/uploads/2017/02/chart-resistance.png
     Bitcoin sometimes fluctuates between levels of support and resistance, which work together to create a range. This is called 'rangebound trading', and creates opportunities for traders to buy bitcoin when it is near the bottom of the range and sell when it is close to the top.

     Chart 4: Ranges of support and resistance: https://media.coindesk.com/uploads/2017/02/chart-rangebound-trading.png

However, should bitcoin prices exit a trading range, this can result in robust trading activity, significant volatility and a new trend.

For example, if bitcoin prices break through a price level that previously served as resistance, this price frequently ends up serving as a support level. Alternatively, the opposite could happen, with the digital currency's price falling below support, resulting in this level becoming a new resistance level.

•   VOLUME'S KEY ROLE
Bitcoin traders should keep in mind that volume plays an important role in evaluating price trends. High volume points to strong price trends, while low volume indicates weaker trends. If bitcoin prices experience a large gain or loss, traders should be sure to examine volume.

For example, if bitcoin enjoys a long uptrend and then declines sharply one day, it is worth checking out volume to get a better sense of whether this downward movement represents a new trend or simply a temporary pullback.

Generally, rising prices coincide with increasing volume. If bitcoin prices enjoy an uptrend, but the currency's upward movements take place amid weak volume, this could mean that the trend is running out of gas and could soon be over.

     Chart 5: Volume rising as the price climbs:https://media.coindesk.com/uploads/2017/02/chart-volume.png
Criticisms of technical analysis

•       CRITICISMS OF TECHNICAL ANALYSIS
While technical analysis can be a valuable tool in a bitcoin trader's arsenal, those considering using it can benefit from being aware of the criticism brought against this particular approach. Much of this criticism comes from the 'efficient market' hypothesis, which is the idea that market prices reflect all available information.

If this assertion is valid, then there is no value to be had from conducting analysis in an effort to determine when securities are undervalued or overvalued. Efficient market hypothesis has both its critics and advocates, and arguments can be made either for or against the idea.

At the end of the day, it is up to each individual bitcoin trader to consider both sides and determine what they believe.

•   KEY CONSIDERATIONS
By leveraging technical analysis, bitcoin traders can gauge market sentiment, identify trends and potentially make better-informed investment decisions. However, there are a few key variables they should keep in mind.

For starters, technical analysis is a very practical approach, looking only at a security's price and volume.

As a result, relying on technical analysis could potentially cause a trader to either miss out on opportunities to buy bitcoin when it is undervalued or, alternatively, purchase the digital currency when the price may be inflated, at least according to the fundamentals.

To manage this risk, bitcoin traders can potentially combine fundamental analysis with technical analysis. For example, if a bitcoin trader concludes that technical indicators and patterns are telling him to buy, he can help affirm this by evaluating some fundamental data, such as the approaching SEC ruling on the Winklevoss ETF.

Alternatively, a bitcoin trader could leverage fundamental analysis to determine whether bitcoin is undervalued or overvalued and then harness technical analysis to calculate the best point to either buy or sell the digital currency.

If you're looking for a 100% accurate thing then you will never get one to use because NO such things are available.

I'm not an expert in trading so don't know to give you an exact answer to your question but in general it depends on many things like trade volume, trend lines, resistance and support levels, moving averages and market sentiment. Like this plenty of things need to consider but not always market moves as per these technical analyses because sometimes any small news can change complete calculations and markets can move opposite directions.

Good day traders, I would just like to ask what is the very effective analysis to use in trading? I've been using Technical Analysis in my trades and it's not 100% accurate.