Topic: Is technical analysis vital? - page 4. (Read 2560 times)
One of the important tools is the analysis of support and resistance levels. Having determined these levels, the trader can better understand the state of supply and demand in the bitcoin market
Identifying trends or the general direction of the price movement of an asset can be very useful for bitkoyn-traders. But the definition of these trends is often a difficult task. Digital currencies can demonstrate high volatility, so the price schedule of bitcoins can look like a series of peaks and dips.
Technical analysis is always based on the data which has passed it reflects where buyers are keen to enter and where sellers are keen to sell, most difficult thing in any analysis to know the take profit point and SL point, tech analysis can help you to get into good trade at a good time but its always not successful, keeping SL will protect you equity in that case, if you are considering to invest in any coin for a long term then fundamentals are quite important to read, the whole project, the background, acceptance of project in the market etc, as mentioned by someone in previous post, in your long term investment tech analysis can help you find a good entry and exit point, for long term analysis, higher TF should be considered like weekly or monthly TF.
You will can to find type of cycle where the price of active. You will can to find trends, correction, point enter. Of course the technical analysis will be very useful for you.
I would get my vote for point of enter. Usually, I am using TA especially when the coin is on sideways and have a great development updates coming and using TA makes me see what is the best price to enter.
In simple terms for long term trading, just get a good project and invest in and sleep. No need to be checking daily. Basically read their whitepaper, community and team
You have a point, But you just can't buy right away that you could also miss the dip or having the most amount of coins using your money.
Vital isn't the right word. The right expression should be "very vital". For me, technical analysis is the periscope I use in gauging the movement and direction of any trading pair and I think every trader should use it before entering the market. I value it over Fundamentals.
Actually when people tend to say Technical Analysis is bullshit and does not work, then I tend to ask myself, how they tend to trade the market without it at the end of the day. I believe the problem right from the onset is that a lot of people have this idea that technical analysis should always give perfect direction to a market without any hiccups at all, but for heaven sake, it is a market and we are only meant to be guided with technical analysis, so I certainly agree with you saying it is very vital.
Many with skepticism refer to the use of technical analysis in the case of trade in bitcoins. But I believe that technical analysis remains an actual tool for working with this currency. It works for bitcoin, as for any other markets. Technical analysis can be even more useful for bitcoins than for other assets. Since this market is very dynamic news flow, volatility, liquidity issues are very different from traditional markets.
Yes, technical analysis is really helpful nowadays, specially we are now being decentralized, soon no more news related analysis, we will not easy to manipulate by fake news or some other social media superstar that are posting some crypto related so that they can easily manipulate the price.
A good result is obtained only when using both technical analysis and fundamental analysis. Also, when analyzing one or another crypto currency, one should pay attention to general market trends, as well as the state of affairs of competing and interconnected crypto-currencies.
Analysis techniques that you do may be vital for you but that may not apply to some other people, because you have to know that everyone has different beliefs and ways to determine the right time to buy and sell coins without having to apply analysis techniques good, follow your beliefs and make sure that can make you get a lot of profits.
You will can to find type of cycle where the price of active. You will can to find trends, correction, point enter. Of course the technical analysis will be very useful for you.
I would get my vote for point of enter. Usually, I am using TA especially when the coin is on sideways and have a great development updates coming and using TA makes me see what is the best price to enter.
In simple terms for long term trading, just get a good project and invest in and sleep. No need to be checking daily. Basically read their whitepaper, community and team
You have a point, But you just can't buy right away that you could also miss the dip or having the most amount of coins using your money.
I think so. Traders or Investors would not post a lot about it if it does not contribute any factor on the market. But I'm not into that because there's a great manipulation involved in here and the first we need to consider TA is to check first if there are more investors coming in or out.
Technical analysis in financial investment in general and cryptocurrency is very necessary, it helps identify trends that may occur in the future so that investors can make the decision easier. But for a successful investment, technical analysis is not enough and many other factors are needed to make that decision because the market is volatile.
My early attempts at technical analysis didn't get me anywhere. It didn't really give good signals, and would change as the precious information changed. However this wasn't for crypto, but for forex. Crypto in general is a lot more explosive I think, and the news has a huge effect.
Technical analysis is not perfect wherein when you master it, you will not have a lose. Technical analysis is just a guide for you to have a basis for your trading and knowing when to buy and to sell. It would just let you speculate on what the future might be base on its past movements. It is sometimes a hit and sometimes a miss so the key here is to have a risk management by having a trading plan always and knowing the levels of buying and selling.
The technical side answers the question of when to buy and to sell exactly. For the fundamentals they most of the time interpret the bias of "what" to buy. But you can either use one of them for those queries.
It would be better to use the combination of fundamental and technical analysis along with market sentiment to have an edge of what might be the future price of the coin. It would guide you and be rational. There are still so many who lose when it comes to trading even if they are using both because they cannot get rid of their emotions.
I personally think theres an extra piece to TA that most don't factor in which has a lot to do with market conditions and/or common sense.. the most important part of any trade is when you hit the buy button... this shouldn't be TA based as much as market conditions based and will most market conditions favor or hurt this trade.. like for example if BTC is creeping near its pass/fail resistance area for a long term trend line.. its likely not going to make very much sense to enter an altcoin position because the risk:reward doesn't make any sense... however if BTC breaks down from its support and is reaching 10%+ down for the day, most alt positions are gonna be safer... theres really no TA that can desribe this...what TA can help you with is if you are looking to sell or rebuy a position trade using steadfast rules on when NOT to buy so even if you make a mistake, you avoid the areas where it would have been the most drastic. TA just min maxes the top and bottom of market conditions, but the market conditions and common sense piece is far more important.
For better trading outcome combination of technical and fundamental analysis is the best. Whether you are trading for long term or for day trading you will need both technical and fundamental to confirm trading set up for entering the trade. I was working mostly with Technical analysis because it was telling me what is happening in the market currently but once there is any adverse news the whole system will fail and loss will come.
My early attempts at technical analysis didn't get me anywhere. It didn't really give good signals, and would change as the precious information changed. However this wasn't for crypto, but for forex. Crypto in general is a lot more explosive I think, and the news has a huge effect.
Hi I was wondering what the general consensus was on the use of technical analysis in making long term investments. I know short term day traders get allot of use out of it but if I'm investing in a project based on fundamentals does the technical analysis matter?
The technical side answers the question of when to buy and to sell exactly. For the fundamentals they most of the time interpret the bias of "what" to buy. But you can either use one of them for those queries.
For better trading outcome combination of technical and fundamental analysis is the best. Whether you are trading for long term or for day trading you will need both technical and fundamental to confirm trading set up for entering the trade. I was working mostly with Technical analysis because it was telling me what is happening in the market currently but once there is any adverse news the whole system will fail and loss will come.
Actually, it is not so easy to understand technical analysis. As I see, very few people use TA in trading and investing, and they are wrong as they could make fewer mistakes dealing with the cryptos.
In simple terms for long term trading, just get a good project and invest in and sleep. No need to be checking daily. Basically read their whitepaper, community and team
but if you do daily trading, technical analysis is very important to get profits and predict prices as well, but if long-term trading is easy and all we have to do to get the desired profit is to wait until the price you wantTechnical analysis is a very important thing. If a trader wants to be a successful and wealthy businessman, he has to apply it each time, he makes some operations with the crypto.
Why not just keep an eye on them before putting your money on a coin. It will give you good decent in-depth analysis.
Vital isn't the right word. The right expression should be "very vital". For me, technical analysis is the periscope I use in gauging the movement and direction of any trading pair and I think every trader should use it before entering the market. I value it over Fundamentals.
However, as I guess, less than 15% of the traders use this technical analysis. This is a great mistake as TA is a great help. It will help you understand which of the cryptos will grow.
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