Topic: Is technical analysis vital? - page 5. (Read 2560 times)

People will always say whatever they want to say as long as they never tend to have a plan. For those in this category, they tend to always believe that technical analysis should always give you a 100% on point direction to where the market tends. People need to understand that in a market, what we do is educated gambling.

Without a strategy, then in this case you are really gambling without knowing exactly what you are doing. It is this reason why the risks are there, but the ability to manage those risks, with great plan and strategy is where technical analysis comes in, but I guess some people would just not understand.

To the best of my knowledge technical analysis is based on using indicators to determine price action and technical analysis is based on history of the price which has been computed and it is a vital tool used by traders to determine when to buy or sell and is often accurate when using a higher timeframe however majority of these indicators do lag the price hence price might have move in a considerable distance before the indicator gives a signal.

Every aspect that we use while trading is a unite so whether it is technical or fundamental, both are very important. In crypto trading, most of the time we will combine those two methods. We can't just ignore the fundamental stuffs like news in regards with the coin we trade although we use technical analysis method and vice versa.

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.

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 want

If you're investing in the product because you believe it will grow in value i the upcoming years, the only thing i'd use technical analysis is finding a good entry-point. If you're truly confident that token XYZ will 100x in the coming years, i don't even see searching entry-point that necessary.

When planning in going to long term investments i personally look for moving averages, 50, 100 and 200MA's are great way to verify that the direction of the price is going to the preferred one. No need to start nitpicking about the low timeframe RSI's etc. when looking for long term investments. If the fundamentals look solid to you, go for it.

"Is technical analysis vital?"

YES, if you want to make money in the market. Even if everything is good from the FA's view the price can still go down. You buy a coin based on FA, ok - that's fine but you need to know when to take profit because sooner or later it will correct that move up and you could see a 70-90% correction.

For long term investment you should put more effort into fundamental analysts as that's far more important to keep the project running and growing in a few years rather than the short term price movement. Like you've said TA is more important to know where the price is moving short term.

It matters because technical analysis is telling you what is about to happen in the market and what is happening immediately in the same market. When i was learning how to trade I was told that the combination of both signals is the best and make more clearer the moves. As a trader for you to make it whether short term or long term market combination of both analysis will be the best for you.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

Op is asking the role of TA's in long terms

Basically you use TA's when you do trade, it differs on HODL

what is more important in doing hold is the ability of the coin to withstand a bear market conditions like today, its usage, devs, and market cap

Research on what coin you want to invest, rather than making a technical analysis as it may seem not applicable

I would even say without technical analysis, then you are totally bound to fail woefully in any market and that makes them very vital indeed. I am not really a big fan of fundamentals anyway, I trade based on what I see, how I see it, while planning my exit, entry and stop loss at the same time. That is the idea of technical analysis, it gives you a sense of direction and ability to make plans, and it is not like some magic wand that would just give you an exact prediction to the market.

Absolutely not, there are plenty of ways to trade without looking at technical indicators, the main thing you need to track is market sentiment, how do people in general feel about Bitcoin at the moment, based on this you can usually tell where the market is heading.

In my opinion, both fundamental and technical analysis is quite applicable for any market, and crypto-currencies are no exception. On the other hand, this market still has some specifics. So, since the total capitalization of digital currencies is still relatively small, and the methodology of analysis is just beginning to be developed, the market situation depends very much on "high-profile" news, reports on the achievements of developers and resonant statements of prominent economic and political figures.

In my opinion, technical analysis is very important for us is a tool needed to be used in trade and investment that requires better basics and a great basis for this to have good analysis in cryptocurrancy.

I have heard some persons day that crypto does not obey TA, I have had points where TA failed and no prevailing  fundamental, personally I feel TA in crypto is 50 :50. At some points it may give a good clue of next market direction at other points it is totally the opposite

Technical analysis is always an important issue that you need to answer soon and thoroughly. Besides, you should listen to your mind. If it tells you not to invest, you should not invest. Because reason and emotion always have a very close connection with each other. good luck with your portfolio.

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.

Although that coin have good fundamental but there are any times for that coin will going to down trend, so we should be have skill about technical analysis to maximize the profit. Will be much better to have knowledge both, that is technical and fundamental analysis. No one coins will going up forever so we need to have skill about technical analysis to predict the price when will be reversal, overbought or oversold.

I think whether for short term or long term you need the technical analysis, technical analysis could help you to decide when to enter the market,and from the chart combine with TA you can predict which way the coin will goes in the future, so implementing technical analysis for long term will be useful

Analysis is the only way to estimate the price, whether it's technical or fundamental. TA may not be able to correct analysis for predicting market, but it's just predict. Sometimes we can't get the result we want  from FA, but this can't be conclusion that any of these methods don't work.