Technical indicators vs the News - page 5.

Dalib

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Quote from: Kara3 on April 23, 2023, 01:18:58 AM

Analysing the trend of the crypto market can be very complicated, base on the fact that their are two major deciding factor in price analysis when trading, which are the technical indicators an news about a project.
I have not been in the crypto space for not too long but I have come to the conclusion that the news is more influential in the trend of the market than the technical indicators, guys what do you think?

The trend of the crypto market can be influenced by a variety of factors, including technical indicators and news about a project. While technical indicators can provide valuable insights into market trends and price movements, news and events can also have a significant impact on the market.

For example, news about regulatory changes, partnerships, or new developments in a project can cause significant price movements in the market. Similarly, negative news or events can cause a drop in prices.

Both technical indicators and news are important factors to consider when analyzing the crypto market. It is important to have a well-rounded understanding of the market and to consider multiple factors when making investment decisions.

palle11

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I will agree that news is considered more important for cryptocurrency investment or trading. Cryptocurrency doesn't obey the rules or technicalities of technical analysis. Technical analysis is basically tracing of charts which is more of forex trading and stock market analysis but the volatility of cryptocurrency is more of news striking the market. What technical analysis and indicators do to cryptocurrency market is trend formation as it relates to support and resistance, that though will change with news.

newdevices

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News is far more powerful than indicators, this is what I say because I have that experience, the example is very simple,
we know 2022-2023 can be said to be Bearish season, but look at the lots of altcoin pumps due to good news, or dumps due to bad news,
yeah even though the indicators look good, so don't expect too much from trading indicators, you also need to stay updated and monitor social media coins that you hold.

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Quote from: Kara3 on April 23, 2023, 01:18:58 AM

Analysing the trend of the crypto market can be very complicated, base on the fact that their are two major deciding factor in price analysis when trading, which are the technical indicators an news about a project.
I have not been in the crypto space for not too long but I have come to the conclusion that the news is more influential in the trend of the market than the technical indicators, guys what do you think?

In crypto market news plays a very important role. It's news that cause fear in minds of investors, and they start bulk selling to avoid losses which results into the crash of market. There are many investors who purely invest in crypto based on news, if the news media shows that a coin is going to pump then investors blindly follow that news and start investing millions of dollars into that coin. Once a coin is bought in high volumes then next game is automatically done by bots of exchanges by bulk selling.

But, we can not underestimate the importance of indicators as they are crucial in crypto trading. In Bitcoin trading indicators work and if the trading is done with a professional plan, a well developed strategy, then you can gain enough profits with the help of those indicators. The market is mostly controlled by whales who hold a lot coins, and if they start bulk selling then those indicators can save you.

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Quote from: Davidvictorson on April 23, 2023, 08:57:56 AM

Both are better and are important. But a trader should pay more attention to the news than technical indicators. It should be in the ratio of 70 - 30. The news is important because it will avail you information of the latest sentiments in the market and how they positively or negatively impact the worth of Bitcoin. It acts as a future predictor and therefore more attention should be given to it.

I disagree with you.

News is like tip of iceberg but it is not the real reason. Real reason is because of technical indicators show that the market must have a big change so news is released to direct the market to what it should move. Do you see like after a market has its big movements, hours later you will see some articles on Coindesk, Cointelegraph and other sites to make it like there are reasons for the latest big movement. It is to make people think that the market is actually moving naturally. In fact it moves by manipulation from Market makers.

Davidvictorson

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Both are better and are important. But a trader should pay more attention to the news than technical indicators. It should be in the ratio of 70 - 30. The news is important because it will avail you information of the latest sentiments in the market and how they positively or negatively impact the worth of Bitcoin. It acts as a future predictor and therefore more attention should be given to it.

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Quote from: Kara3 on April 23, 2023, 01:18:58 AM

I have not been in the crypto space for not too long but I have come to the conclusion that the news is more influential in the trend of the market than the technical indicators, guys what do you think?

Not all news is influential and the news you are describing is a fundamental analysis. The only time news influences the price if its seriously related on the fundamentals of coin like hack, acquisition and so on but not all news will give a necessary price action because most of them is just recycled or a minor changes on the project especially on crypto.

Let's use the Feds interest rate news as example. Regardless of what the news about the interest, BTC keep pumping even though it heavily affects the price before when this kind of news first release. People is already used to it so it doesn't gave much impact to all the traders to consider it on price analysis. Technical analysis is use for long term since news is not available most of the time. TA is more reliable of you want a better trade. Stop loss is being use to counter those sudden orice action due to the surprise news.

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Quote from: Kara3 on April 23, 2023, 01:18:58 AM

Analysing the trend of the crypto market can be very complicated, base on the fact that their are two major deciding factor in price analysis when trading, which are the technical indicators an news about a project.
I have not been in the crypto space for not too long but I have come to the conclusion that the news is more influential in the trend of the market than the technical indicators, guys what do you think?

It's obvious that fundamental news drives the market it's either a positive or negative news thus in most cases market defies any form of technical analysis whenever there is news at that moment for instance in forex trading it's always advisable to avoid trading 30 minutes before any Red news and continue 30 minutes after a news, it's also applicable in crypto trading too, therefore it's always important to get keep updated on fundamental news related to any trading pair particularly Bitcoin whose drop or pump in it price affect majority of crypto pairs in term of volatility, I took time to always read latest news related to crypto and forex with a view to analyze it impact on prices of the trading pairs.

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Quote from: Kara3 on April 23, 2023, 01:18:58 AM

Analysing the trend of the crypto market can be very complicated, base on the fact that their are two major deciding factor in price analysis when trading, which are the technical indicators an news about a project.
I have not been in the crypto space for not too long but I have come to the conclusion that the news is more influential in the trend of the market than the technical indicators, guys what do you think?

That's simply because news affects the emotions of traders as to how they engage the market. Are they being greedy or fearful? if so, are they buying more or selling off their positions?
When there are a lot of involvement in the market, guess what? It causes volatility. The market moves in a way that orders are cluttered both buys and longs.
Manipulation then occurs taking one side of the market before going truly one direction higher or lower.

Instead of choosing between price analysis and news, Try doing incorporating the news and fundamental research with your price action analysis. This will set an expectation as to how you also will engage the market. The more confluence you have, the more confidence you have in your trade and analysis. That's how you will grow as a trader. Creating your own convictions and practicing your decision-making processes.

gunhell16

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Quote from: Kara3 on April 23, 2023, 01:18:58 AM

Analysing the trend of the crypto market can be very complicated, base on the fact that their are two major deciding factor in price analysis when trading, which are the technical indicators an news about a project.
I have not been in the crypto space for not too long but I have come to the conclusion that the news is more influential in the trend of the market than the technical indicators, guys what do you think?

In the news, because the market is often they can advertise the truth and false, that's the cycle of news. So sometimes you will find a variety of FUDs about Bitcoin and cryptocurrency.

Now, if we can count on technical indicators it will only be difficult if you do not know how to read it correctly, though sometimes or often it is not accurate so the situation becomes complicated as well.

mk4

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That's because technical indicators doesn't necessarily cause price increases/drops like how news does; technical indicators can just give you a very small advantageous bump in odds on what could likely happen more based on past performance.

Kara3

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Analysing the trend of the crypto market can be very complicated, base on the fact that their are two major deciding factor in price analysis when trading, which are the technical indicators an news about a project.
I have not been in the crypto space for not too long but I have come to the conclusion that the news is more influential in the trend of the market than the technical indicators, guys what do you think?

Topic: Technical indicators vs the News - page 5. (Read 575 times)