The issues that affect the market are many and most time it is very difficult to summarize all the information coming into the market and make an informed investments decision. I do used technical indicators to analyze the market before investing and we have many traders and investors that holds the views that we must used technical and fundamentals indicators in analyzing the market in other to be able to make an informed investments decision. I believe that candlestick formations and patterns contains information about both technical and fundamentals issues that came into the market. Should I continue using candlesticks formation in interpreting the market or something might happen happen that might suspend candlesticks formation information.
You should combine them.
What is Fundamental Analysis?Crypto fundamental analysis is a qualitative approach to market information investigation. It takes the data from the market and delves deep into them for meaning. The meaning of market movements is thus characterized as psychological since supply and demand are led by people who participate in the market. Qualitative measurement also seeks to find hidden meanings behind events, action, and reactions of major players in the industry.
Since cryptocurrency is still small compared to other financial sectors, impacts made by participants can be felt much more keenly. Thus, fundamental analysis strives to identify the reasons behind changes in the market, as well as future implications. Sources of information are crucially important to have accurate data for this analysis to be correct.
What is Crypto Technical Analysis ?Crypto Technical analysis is a tool that traders use to identify price trends. It helps them figure out how the market behaves, providing a sound basis for smart trading choices. Although may sound complicated, it is nothing more than analyzing the demand and supply in the desired market.
Technical analysts look to identify patterns in the price change throughout history. Based on the existing statistics, investors make an assumption on the future price and come up with a trading decision. Chart investigation is a crucial part of any crypto technical analysis. You can identify trends by keeping track of moving averages, support and resistance levels, and trading volume.
There are two main types of tech analysis that every crypto traders should employ on daily basis. Their concepts are quite simple but the implementation is what differs successful investors from others.
– Short-term technical investigation (the period is between a day and a week, with emphasis on small price changes and patterns. You, as a trader, are trying to find peaks and bottoms that may occur within next hour.)
– Long-term technical investigation (ranging between a month and a year. This is used for a general course of a chosen crypto and whether it should be in your portfolio in a long-term.)