This is a good starting point for new people. However, you really should probably explain when people should buy on these indicators. All you do is explain what the technical analysis tools are. You never really explain when people should buy or sell using them. For instance, on Bollinger bands, if the candle is crossing the bottom line, it's probably a good time to buy and if a candle is crossing the top band, it's probably about to come down in price a little bit, so you should sell.
It is indeed a detailed articles on technical analysis he should have included how to spot those zones or areas where to buy or sell with those indicators probably he should have added some candlesticks patterns formed coupled with those indicators just like bollinger bands you mentioned which will signaled a short or long positions, overall its an eye opener for newbies in trading particularly how to spot those resistance and support zones. 
Topic: How to Apply Technical Analysis to Cryptocurrencies (Read 387 times)
Nice post, great for a general overview of technical analysis.
However, the more important question here i think is whether or not it is valid to use technical analysis on something so volatile as bitcoin? I mean to say bitcoin is so vulnerable to news and rumors so long as you have someone saying "china will ban bitcoin" or "craig wright is the fake satoshi" or "bitcoin halvening is next year" or "bitcoin ETF is to be approved" and you see everyone rushing to trade. Technical analysis goes straight out the window.
Most of the time just it's simply just better to "buy the rumor and sell the news."
However, the more important question here i think is whether or not it is valid to use technical analysis on something so volatile as bitcoin? I mean to say bitcoin is so vulnerable to news and rumors so long as you have someone saying "china will ban bitcoin" or "craig wright is the fake satoshi" or "bitcoin halvening is next year" or "bitcoin ETF is to be approved" and you see everyone rushing to trade. Technical analysis goes straight out the window.
Most of the time just it's simply just better to "buy the rumor and sell the news."
This is a good starting point for new people. However, you really should probably explain when people should buy on these indicators. All you do is explain what the technical analysis tools are. You never really explain when people should buy or sell using them.
That would be up the understanding and conclusion of traders. A trader needs to compare how an indicator works and how market reacts at those times. It means no one could spot you out the exact buy/sell levels but they usually show you how to interpret an indicator and from that we need to derive how to make use of those indicators and charts. This is how usually all technical analysis will work.Technical analysis aren't always reliable, studying all types of analysis like fundamental analysis and sentimental analysis, what differs them and what they think will be effective for them.
No analysis will be perfect and versatile because market fluctuations are purely based on the mentality of each and every trader hence no mathematical thing could predict how a trader will think and decide. This is the reason bitcoin is good for any trader for simply buying and holding to get enormous profits without any analysis.Quote
their ability to weigh things and control their decisions will be the one who will drive the future of their.
Trading needs lots of such rules and disciplines whereas holding kind of trading doesn't. You may simply invest and wait for huge profits if you trade only bitcoins.
This is a good starting point for new people. However, you really should probably explain when people should buy on these indicators. All you do is explain what the technical analysis tools are. You never really explain when people should buy or sell using them. For instance, on Bollinger bands, if the candle is crossing the bottom line, it's probably a good time to buy and if a candle is crossing the top band, it's probably about to come down in price a little bit, so you should sell.
I like the way you explained about technical analysis to cryptocurrencies. The illustration of yours was quite cleared and understandable to me, especially in the uptrend and downtrend of the volatility price value of the token in the market. Moreover, TA is much more giving benefits any of the individual traders whether in crypto or Forex trading. And of course you can only this if you are making trade in the exchange.
I think the main point here is that indicators and analysis comes from the fact that "when last time we were in this position x happened". So, it is always retrospective working towards future which is not always right. I mean it does work sometimes but sometimes it doesn't. We can't guarantee it and we have seen plenty of charts and analysis that turned out to be wrong.
Hence, I think the most important fact that should be stated here for people who want to learn how to read charts and how to make their own analysis that it will not be correct all the time. Of course there are times when history repeats itself and whatever happened in the past will happen again in the same circumstances. But there are times when it does just the opposite in reaction and then you are in big trouble.
Hence, I think the most important fact that should be stated here for people who want to learn how to read charts and how to make their own analysis that it will not be correct all the time. Of course there are times when history repeats itself and whatever happened in the past will happen again in the same circumstances. But there are times when it does just the opposite in reaction and then you are in big trouble.
technical analysis will work well in forex and stock markets crypto is very volatile and unpredictable i am not saying that it wont work but chances are less
But have this volatility makes crypto very popular and giving more chances to become profitable. Only TA's aren't being used exactly, its because not all traders have that knowledge to its neither. Even me, I really don't use TA in my trades as I will actually be following the flows and do some market picks. 
Nice article... But with swings of 10% going on near a daily basis, I doubt much technical analysis will help.
on the contrary, bitcoin's volatility just makes it so we can enter/exit trades more often. TA still works just like any other market.
Technical analysis looks very nice on paper and works better with other asset class, but with bitcoins and cryptocurrencies, everything sort of go with the wind. We had bitcoin almost making multiple death crosses a day or 2 ago and show all the "expert' analysis by the professionals, but bitcoin kind of ignored all and went to touch 11k, they experts 'modified' their stance, then bitcoin dropped.
even good traders/analysts are wrong all the time. that doesn't mean TA doesn't work per se, it just means 1. markets are unpredictable and profitable methods don't work 100% of the time and 2. lots of traders don't apply TA correctly.
it looks like the push to $11k was just a bull trap after all. we're back in the $9000s again as we speak.
This is definitely good for newbies who wanted to learn technical analysis. At least it will open their eyes if they really wanted to use it to before putting their money on the market. Of course it's not a guarantee that technical analysis is always correct, but at least it could serves as a guide for predicting those wild educated guesses we always hear in this community.
Bro, we need to always remove this mentality that things like this are for newbies, we have lots of traders that has been in trading for long that honestly still finds it very difficult to cope with technical analysis till now, because they lack the understanding of its usage, so any opportunity like this to get a simple breakdown of it will highly be appreciated to them. This little article you feel is for newbie, there might be a particular point in it that even the pro trader will pick interest in and apply it to his trade, it is absolutely impossible for anyone to know it all, the market is verse and keeps updating, so we also need to keep updating ourselves. Most people that know how to use TA still have their own different strategies, so this might be a good one for someone.
Nice article... But with swings of 10% going on near a daily basis, I doubt much technical analysis will help.
Also, crypto is manipulated sometimes.
Basically, the answer could be in those charts but then it might not be
Neither both ways.This is why technical isnt really a reliable thing for you to depend on yet price can swing up more than you anticipated with your TA's.Also, crypto is manipulated sometimes.
Basically, the answer could be in those charts but then it might not be
OP you made a good thread showing off detailed informations about TA's ,good for those newbies or who do just recently started to understand these tools.
These are helpful but should not heavily relied on its better if it would be accompanied with some fundamentals.
Technical analysis looks very nice on paper and works better with other asset class, but with bitcoins and cryptocurrencies, everything sort of go with the wind. We had bitcoin almost making multiple death crosses a day or 2 ago and show all the "expert' analysis by the professionals, but bitcoin kind of ignored all and went to touch 11k, they experts 'modified' their stance, then bitcoin dropped. The truth be said, bitcoin does its own thing and TA alone doesnt stand a good chance to make you money. I go with the fundamentals at the moment. One tweet from Trump can ruin every TA analysis
Nice article... But with swings of 10% going on near a daily basis, I doubt much technical analysis will help.
Also, crypto is manipulated sometimes.
Basically, the answer could be in those charts but then it might not be
Neither both ways.This is why technical isnt really a reliable thing for you to depend on yet price can swing up more than you anticipated with your TA's.Also, crypto is manipulated sometimes.
Basically, the answer could be in those charts but then it might not be
OP you made a good thread showing off detailed informations about TA's ,good for those newbies or who do just recently started to understand these tools.
These are helpful but should not heavily relied on its better if it would be accompanied with some fundamentals.
I'm not a technical guy, but indeed you need some understanding of it. I usually see other TA experts here in the community, it is a behold to see what those guys have to say and respect to them because some of them have predicted the price movement while others is failed. So it is a hit or miss, but nevertheless a good understand is better than nothing so thank you OP for sharing it.
really nice article for newbies to get a small insight view in technical analysis. you missed one thing which should every newbie learn from the start.
most important thing for me when it comes to trading is train your mind. the best technical analyst will fail (when he is trading) if his mind isn't "trained" for trading. analysis and trading isn't really hard. in the theory there are just some rules you have to follow. its our mind which fucks up when we start trading
you don't want to lose, you wanna be always right and so on..
most important thing for me when it comes to trading is train your mind. the best technical analyst will fail (when he is trading) if his mind isn't "trained" for trading. analysis and trading isn't really hard. in the theory there are just some rules you have to follow. its our mind which fucks up when we start trading
you don't want to lose, you wanna be always right and so on.. Nice article... But with swings of 10% going on near a daily basis, I doubt much technical analysis will help.
Also, crypto is manipulated sometimes.
Basically, the answer could be in those charts but then it might not be
Nevertheless trade is still going on and there are few ways for estimation, which one of them is technical analysis. Manipulations and unexpected movements are not the reason to give up. We can ignore this since the market is still in the formation phase. Besides, we might prefer that instead of money managed by someone. When the obstacles ágainst cryptocurrency are removed, the positive differences will certainly increase. Imagine what will happen if the chance offered to paper money is offered to the crypto. Also, crypto is manipulated sometimes.
Basically, the answer could be in those charts but then it might not be
This is an awesome article especially for someone who would love to learn about technical analysis.
My issue is this article does not cover all parts of technical analysis. Other very important indicators such as RSI, EMAs are missing
My issue is this article does not cover all parts of technical analysis. Other very important indicators such as RSI, EMAs are missing
I do not think much of TA, though it may work (but that's a big question) on regulated markets, then crypto market can not do that at all, because the market is very manipulative. It is better to analyze fundamental factors. That's just my personal opinion.
This is definitely good for newbies who wanted to learn technical analysis. At least it will open their eyes if they really wanted to use it to before putting their money on the market. Of course it's not a guarantee that technical analysis is always correct, but at least it could serves as a guide for predicting those wild educated guesses we always hear in this community.
Nice article... But with swings of 10% going on near a daily basis, I doubt much technical analysis will help.
Also, crypto is manipulated sometimes.
Basically, the answer could be in those charts but then it might not be
Also, crypto is manipulated sometimes.
Basically, the answer could be in those charts but then it might not be
Jump to: