The Purpose of Technical Analysis

[Whited35 15285]

2 hours ago, Sadaf23535 said:

Technical analysis is very important for everything I'd we are treading online then it is very important to anylise everything about our business technically.

I did not get your point clearly but I assume you are trying to express something regrading the importance of the Technical Analysis. In the essence, Technical analysis helps traders to analyze market momentum properly. 

[JanBomCrypto 494]

1 hour ago, Whited35 said:

I did not get your point clearly but I assume you are trying to express something regrading the importance of the Technical Analysis. In the essence, Technical analysis helps traders to analyze market momentum properly. 

The bases  of trading studying is the technical analysis, like if I want to check the price of bitcoin in the last three years, I can open the technical graph for bitcoin in years and prices included to know about it. There are still many uses of technical analysis, it requires study on its own. 

[marchal87 2343]

In my opinion, it is one of the most important posts on the forum, with the important information it provides about cryptocurrencies, especially for beginners, thank you very much.

[Kimi_kun29 106]

On 10/25/2020 at 9:52 PM, Whited35 said:

If you dream to be a good cryptocurrency trader, you need some most essential technical skills to analyze the market situations based on historical data and trading volumes on different trading platforms. If you are a beginner in cryptocurrency trading, do not worry, these articles attempt to demonstrate essential techniques to perform technical analysis.
Technical Analysis
It is a process to study cryptocurrency market conditions based on historical data and trading volumes by applying different analytical tools. Technical Analysis is a practical approach to help traders to make further trading strategies because it is responsible to change market psychology. It does make the sense because the majority of traders follow the previous trends and chart patterns to make further moves.

 

Key terms to understand
1. Trends and trend lines
Bullish Trend: It is also known as an uptrend. In a bullish trend, the price of cryptocurrency is going up.
Sideways trend: In this sideways trend, the price of assets neither falls nor increases. It just follows a horizontal path. 
Bearish Trend: It is also known as a downtrend. In a bearish trend, the price of cryptocurrency is going down.

 

Trend Line
It is an abounding line to show price movements from low to high. Have a look at the figure. 

 

 

2. Support and resistance
It is extremely important to understand these two terms:-
Support: It is a lower level at which the bearish trend is expected to be paused and the price rebounds to that mark.
Resistance: It is the highest level at which a bullish trend is expected to be paused and price reverts to that mark.

3. Moving Averages
Traders analyze the market momentum by locating the moving average. It helps to identify support and resistance levels for some specific time frame. 

 

 

How to read Candle Sticks charts?
Every candlestick in a trading chart consists of opening and closing prices. 

 

 

Bullish vs Bearish
Bullish Market: In this type of market, buyers compete with each other to grab orders by setting the higher price mark. You can see bullish candles going up.
Bearish Market: In this type of market, sellers compete with each other to grab orders by setting the lower price mark. You can see bearish candles going down.

 

Volatility Check

Generally, cryptocurrency markets are volatile in nature. Have a look at following diagram.

 

 

Overbought and Oversold
Overbought:-It is the state of the market when cryptocurrency is massively bought and it will be the best time for a trader to sell his asset.
Oversold:-In this state of the market, sellers sell their assets at the cheapest rate and it will be the perfect time for a buyer to purchase cryptocurrency at the cheapest rate. 

 

 

 

Trading volume and price connection
Keep it in your mind, the bigger the trading volume, the better will be price trend for cryptocurrency. Have a look at the following chart. 

 

 

Conclusion:- In essence, Technical Analysis is done according to already available data. Sometimes, it may fail to predict market momentum correctly and in that condition, beginners could lose important opportunities. So it is better to perform according to situations.

Thank You😊!
 

This would really help the beginners in trading. But it shouldn't stop here, there are also technics that some professionals know that you do not. If you have the budget to be coached, I would recommend it but if not, well you can always find it in the internet. However, they are some cases that in the internet, the way they explain is very confusing. But thank you so much for this sir ;)

[Yeasin Islam Arafat 60]

Infact, Technical analysis is the study of the past trend of a stock's price and the amount of its trading, in an attempt to predict its future direction.  Specialized programs are used to convert price changes into charts linking the price with time.  Technical analysis is widely used among traders and speculative professionals.  It is an art and not a science as some think.  But the disadvantage of this art is that it depends on expectations, and some attribute the spread of technical analysis to the ease of learning it.  Thank you for your question.

[Yomose 3704]

Technical analysis let trades knows the past history of the prices of coins and their marketcap at the time. And as well know, without the past, the future will be hard to predict. Technical analysis helps trades to predict the future of each cryptocurrencies. 

[Whited35 15285]

On 11/17/2020 at 7:02 AM, Kimi_kun29 said:

This would really help the beginners in trading. But it shouldn't stop here, there are also technics that some professionals know that you do not.

Yes, you are correct that I am not an expert in Technical analysis. There are already highly trained traders with more experiences thane mine in the similar field. By the way, are you serious to the topic? It is targeted to the beginners and not to the pro traders. 

[Whited35 15285]

18 minutes ago, negocios123777 said:

Excellent tutorial, friend. Technical analysis goes beyond what others suppose, it is not that easy, but not impossible to keep up. Operations based on this analysis strengthen and increase our knowledge and experience when operating in the market. Although we know that it is not only about predicting where the market is going, but also taking advantage of short or long opportunities to generate profits.

Brother @negocios123777 thanks for your feedback. In order to get benefits off cryptocurrency trading, technical analysis plays a crucial roles. Fortunately whatever you see in this topic are just the basic concepts to perform technical analysis. 

[Whited35 15285]

5 minutes ago, negocios123777 said:

But your tutorial is excellent, even if it is basic, it is very useful for those who are starting, since there is so much information on the web that it generates confusion and for a novice they cannot effectively understand the objective of trading. Your explanation is a basic summary to start. I congratulate you!

@negocios123777 Thanks for your appreciation 😍. Have you faced any difficulties while studying this tutorial topic ? If yes, please let me know. I will be more than happy to answer your questions according to my level of understanding. Also keep visiting tutorial sections, I also respect your ideas. 

[Jromz 2158]

Great post, definitely this tutorial is a good starting point with all the basics for anyone interested in learning trading. All these concepts you've described are a quite useful tool to trade based on the price action. I personally also tend to rely on chart patterns to predict when the price may have an explosive move, and they usually give a good result. 

[Whited35 15285]

1 hour ago, Jromz said:

Great post, definitely this tutorial is a good starting point with all the basics for anyone interested in learning trading. All these concepts you've described are a quite useful tool to trade based on the price action. I personally also tend to rely on chart patterns to predict when the price may have an explosive move, and they usually give a good result. 

@Jromz Thanks for your constructive feedback brother. Yes brother, using analytical tools while performing the market analysis is extremely important. Some traders lose their huge amounts just due to the wrong analysis. This topic attempted provide really the basic concepts and next level tutorial is also essential to create. I am working into it brother. Thanks. 

[Jromz 2158]

6 hours ago, Whited35 said:

@Jromz Thanks for your constructive feedback brother. Yes brother, using analytical tools while performing the market analysis is extremely important. Some traders lose their huge amounts just due to the wrong analysis. This topic attempted provide really the basic concepts and next level tutorial is also essential to create. I am working into it brother. Thanks. 

You're quite right, mate. To me, the primary purpose of trading is not losing or losing little money. You did such a fine job here. I wish that when I started learning, I had encountered a post like this, nicely summarizing the most important concepts of trading. Looking forward to your next posts!

[mohamad.joumar 4]

Thank you for this most wonderful explanation

As a beginner it helped me a lot in understanding what I am about to start

Useful and extensive information Thank you

[muhammet güray hut 67]

it surely helps traders to find the best possible trading opportunities in the cryptocurrency markets.Myself, technical analysis is a part before diving into any sorts of Forex or Cryptocurrency tradings. I hope this tutorial helps so many readers. 

[Whited35 15285]

On 11/26/2020 at 12:15 AM, negocios123777 said:

I consider right now, as of today, September 25, 2020, that the price of Bitcoin is in an uptrend with a resistance line at approximately $19,200. We must wait if Btc manages to break that resistance. Hopefully so to continue generating good profits.

@negocios123777What an excellent strategy and plan 😉 Looking like you already have better experiences regarding the technical analysis my friend. Technical analysis just helps us to predict the upcoming outcomes but it may be true or may not be. If you locate today's BTC market, I guess most of the technical analysis from different traders got failed 😂🤣

[Whited35 15285]

12 hours ago, negocios123777 said:

the point here is that you can not take anything for granted, just find a way to predict correctly, but win or lose, all this is part of your growth professional, you know

Exactly. For me, crypto trading was not so good when I was new comer. I managed to have ideas about trading from different resources. Later, I followed the track of test and trials that worked for me but it may not help all traders. Anyway, still so many things are to be learnt and this forum is helping me to get the fresh ideas. 

[Whited35 15285]

17 hours ago, negocios123777 said:

You must continue teaching based on your experience and your knowledge, that helps us, because here we all learn from everyone, your advice is useful and your contributions are very important. I congratulate you, my brother!

@negocios123777 Congratulate to you too. Don't you think your ideas also put the huge values on forum? I would like to appreciate your constructive ideas regarding the cryptocurrency trading and waiting for your best tips and tricks(if you have 😉 )

[Rozy 1918]

although you explanation seems very professional it is easy to approach and understand, some of the terms are completely new to me and others I have encountered earlier, thank you for this detailed information and indeed it is very important information for those who are interested in the crypto world. 

[Whited35 15285]

18 hours ago, negocios123777 said:

And yes, I am willing to contribute useful topics to this forum so that we all learn how it should be. Thanks a lot of to you!

@negocios123777 I have just spotted your quality topic. I am more than happy to meet you on this forum to exchange mainstream cryptocurrency related discussions. Hope you keep sharing the ideas like your recent topic on forum. Be in touch my brother, keep sharing your valuable knowledge regarding crypto trading  😉 ! 

[Omar98 916]

First of all thank you so much for the useful information. As I am a beginner in trading I have no enough information about how it works but now I had a wider view of it.

Also I would like to share with you this information, There is a study called Signal processing.

In that study you can analysis the signals that you are watching to know what it means. This study can be implemented in trading when we want to know the best time for buying and selling by looking at the signals of the chart and do some mental calculations.

[Whited35 15285]

50 minutes ago, Omar98 said:

In that study you can analysis the signals that you are watching to know what it means. This study can be implemented in trading when we want to know the best time for buying and selling by looking at the signals of the chart and do some mental calculations.

Thank can also be a nice idea. You might create the topic with the proper explanation to help the community. I have not included all the things about technical analysis in this short topic but I will do it later when I find more spare time. 

[Whited35 15285]

5 hours ago, kelebekcafe38 said:

Your technical skills have a very important place in the cryptocurrency world, and I believe you can create a strategy for yourself and make good profits with technical analysis.

Not an expert but yeah, I do technical analysis to generate profits off cryptocurrency trading. As it the most important thing to understand, I am pretty much sure, my this topic has helped so many newcomers to get the core concepts. 

[gourav789 2834]

20 hours ago, Whited35 said:

Not an expert but yeah, I do technical analysis to generate profits off cryptocurrency trading. As it the most important thing to understand, I am pretty much sure, my this topic has helped so many newcomers to get the core concepts. 

ofcource mate @Whited35 Trading is one of best method to make good profit . but knowledge as well experience are major effect inorder generate money from trading . I see your trading analysis is good ( I see in technical analysis competition ) .

[Whited35 15285]

1 hour ago, gourav789 said:

I see your trading analysis is good ( I see in technical analysis competition ) .

@gourav789 Forget about the contest 😁 ! I just thanked the team on Cryptotalk forum but I was selected as a pro trader on Forex trading platform just after a disqualification here. Moderators will remove my entries about market analysis if they find anything wrong there. In this topic, I reviewed the contents more than three times to make sure all are carefully placed. If you notice anything wrong here, you can suggest me to update. Thanks. 

[Zeeehussain 558]

Thanks for this wonderful tutorial. I learnt many new things about online trading send investment terms and believe me I was totally unfamiliar with those terms before. That was very useful for me. The presentation of your tutorial was great. You present all the terms in very simple way that anyone can understand it is easily.