Three types of analysis are used to trade cryptocurrencies

[bliznec 22267]

For me, emotional analysis is most suitable. With this type of analysis, I can completely do cryptocurrency trading. I like it when there is a discussion of one or another kind of aspect. 

[bentayebsalah 2280]

The best fundamental analysis is among these three types of analysis because the most fundamental analysis is realistic, honest, and has good results

[Crypto123 0]

8 hours ago, bentayebsalah said:

The best fundamental analysis is among these three types of analysis because the most fundamental analysis is realistic, honest, and has good results

Thank you for your opinion, this is your opinion, and of course I agree with you and respect your opinion, but there are many people who prefer other types of analysis, and this is normal for every person who has a different view from the other and a different way to deal with things.

[scorpiali 5626]

On 2/4/2020 at 10:57 AM, Crypto123 said:

Hello my friends
Initially, I did a research if the topic was already in the forum in order to avoid violating the forum rules by writing duplicate topics.
In fact, I found a topic similar to this topic, but there is a difference between the two topics in terms of the number of species and in terms of the method of explanation, so I do not think the topic is repeated.

 

Let's start now:

For cryptocurrency trading there are three types of analysis, and being able to know these types plays a big role in your success.

 

1- Technical analysis
This type of analysis is most used as it researches the history of currencies and then tells you to make the appropriate decision.
It is used to analyze charts, so looking at historical data and price movement you will be able to use this information to predict what will happen at the moment.
This type is not always successful, but there is always a certain method of analysis that prevails in use.
When you open a chart, there are many tools and effects that you can use; things like Fibonacci numbers, theories of wave patterns, moving averages for example, Japanese candles and others.

 

2- Basic analysis
This type of analysis covers a broader range of topics, as it works on economic and political analysis as well as social factors that influence prices.

It may be difficult to put these items under one brief opinion, but luckily there are sites that track events that affect prices, and this helps you to be well informed of current events as well as it is good to know everything new about the digital currencies that you want to trade. As long as you are familiar with it, you will be ready.
You don't have to become a news addict; you just need to be aware of the constant news flow.

 

3- Emotional analysis
This is the last method of analysis and it takes a personal aspect. If everyone is completely objective it will be simple just follow the indicators to make a profit. But you know very well that we all have different opinions, each person’s vision will differ for the same scheme and then the analysis will differ and therefore the results that we extract from this analysis will differ.
You have the right to define your general sense of the market, you may feel that the price should be raised because you are confident. Although this is not necessarily the impression of the market. (It means you have an inner feeling that the price of a coin will go up or down)
Remember that millions of people influence the price. You have to determine what is the prevailing thought at the present time, and how confident is everyone? This kind of analysis requires little trial and error in the long run.

The majority of traders use emotional analyze and take action like that even in basic or technical analyze they have emotional and follow the mass that's why we see some sell or buy panic when the market take a big action 

[Crypto123 0]

2 hours ago, scorpiali said:

The majority of traders use emotional analyze and take action like that even in basic or technical analyze they have emotional and follow the mass that's why we see some sell or buy panic when the market take a big action 

Yes, I also think so. Most traders use emotional analysis without feeling where you see them fluctuating with market fluctuations and following their emotions like fear or greed. But trading experts do not allow their emotions to influence them and use technical analysis.

[scorpiali 5626]

1 hour ago, Crypto123 said:

Yes, I also think so. Most traders use emotional analysis without feeling where you see them fluctuating with market fluctuations and following their emotions like fear or greed. But trading experts do not allow their emotions to influence them and use technical analysis.

As you said 'trading expert' dont care about emotion or nothing and everyone must work hard to like that it's not easy that way

[mashara 107]

thank you so much for providing this informative idea its helpfull for me

[doanvahauvk 34]

Drifting digital forms of money represent the exceptionally vast larger part of the cryptoasset showcase capitalisation (Tether, a stablecoin, and Bitfinex's UNUS SED LEO, an concernment coin, are in the main 12 cryptoassets by PR capitalisation, hustle the rest are gliding cryptographic forms of money).

[Crypto123 0]

On 3/3/2020 at 10:41 AM, scorpiali said:

As you said 'trading expert' dont care about emotion or nothing and everyone must work hard to like that it's not easy that way

Yes, the trading expert is primarily concerned with technical analysis, and it mainly depends on the Japanese candles and Fibonacci and charts that he sees on the screen in front of him, and he tries to get away from the emotion completely in his analyzes, which must be based on scientific foundations.

[cryptousd20 141]

Types of analyzes of cryptocurrency trading are good for the most part, but those that rely on indicators are the best in the analysis because they confirm the expectation in general with a large percentage of the forecast

[Crypto123 0]

2 hours ago, cryptousd20 said:

Types of analyzes of cryptocurrency trading are good for the most part, but those that rely on indicators are the best in the analysis because they confirm the expectation in general with a large percentage of the forecast

Yes, technical analysis is the best from a technical point of view, but this needs experience in analyzing, reading data, movement of markets and indicators, and some people who are not good at such matters depend on emotional analysis and guesswork.

[scorpiali 5626]

9 hours ago, Crypto123 said:

Yes, the trading expert is primarily concerned with technical analysis, and it mainly depends on the Japanese candles and Fibonacci and charts that he sees on the screen in front of him, and he tries to get away from the emotion completely in his analyzes, which must be based on scientific foundations.

It's a lot of time learning t understand how to read the candles and Fibonacci, and how to use any indicator to predict where the price is going as you said it's a science 

[Crypto123 0]

On 3/6/2020 at 5:40 AM, Alex Jorden said:

First of all you should have proper knowledge about trading and then most of the experienced people use indicators to judge whether the prices are going up or going down then they start investing in crypto and get a lot of profit. 

Yes, you must have a good knowledge of trading and also have knowledge of these types in order to know which type is your favorite and you use it. There are people who do not depend on any of these types and they trade randomly or in their own way.

[Crypto123 0]

2 hours ago, Loly said:

For the new traders to succeed, any feeling of emotional attachment to their interactions with the market must be removed and they become successful traders. Traders simply have to find the variables that put the probability outcome in their favor from an online guide, or book, or by analyzing trends, trial, and error. It is simply a function of shifting probabilities to your advantage. 

Thank you for clarifying these really important points, yes a good trader needs to understand all the things and variables that are happening around him and he must, if an expert, refrain from emotions that can give him wrong results and he must follow the news and the market movement continuously.

[SuperCrypto 7193]

Technical traders usually use a variety of different indicators and metrics to try to determine market trends, based on charts and historical price movement in the market. One of the most well-known and used examples is the simple moving averages - SMA index.

[Treat1234 0]

I don't think those kind of analysis are very effective to many traders, some find it easy for trading and this has been the best way to do

[Crypto123 0]

12 hours ago, Bob option said:

Technical analysis is more simple and successful because it depends on several simple indicators and Japanese candles as well because the best thing in the analysis in general is simplicity and making an appropriate decision that leads you to success in trading with ease

Yes, simple technical analysis is far from complicated, many can benefit from this type of analysis and it is certain that the Japanese candles are what most help analysts in their work. It gives you clear indications of price movement.

[Ms.o 3322]

Very nice. Those 3 are good things to used in trading. Every aspects on crypto,the possible reasons of price change or the factors that affect it is really important also to analyze aside from the technical and fundamental analysis.

Edited March 8, 2020 by Ms.o

[Crypto123 0]

10 hours ago, SuperCrypto said:

Technical traders usually use a variety of different indicators and metrics to try to determine market trends, based on charts and historical price movement in the market. One of the most well-known and used examples is the simple moving averages - SMA index.

Thank you for your constructive input and this good additional information that contributes to expanding the topic and increasing your knowledge. I always like members to add some helpful information to the topic which I may or may not have forgotten. So thank you again.

[phizusiki 239]

On 2/14/2020 at 1:51 PM, Iamtheone said:

The three types are very useful but technically and fundamental are more often used. 

This analysis is of different types or as you say "different schools" and needs some learning and some experience. Therefore, each person must choose an analytical type that corresponds to his nature and abilities. That analysis is great, but you can't always believe it is still better if you are the one who understands how the market works so you will know what you are doing.

[Crypto123 0]

5 hours ago, phizusiki said:

This analysis is of different types or as you say "different schools" and needs some learning and some experience. Therefore, each person must choose an analytical type that corresponds to his nature and abilities. That analysis is great, but you can't always believe it is still better if you are the one who understands how the market works so you will know what you are doing.

Yes, I like your opinion, it is true that every person should choose the type of analysis that is appropriate for his abilities and experiences. There are people who love to analyze and follow the news, others follow the currencies, price news, currency news, and people who depend on emotions and forecasting. Everyone has different tendencies.

[BrolySSJ 7899]

From the three types of analysis that you have mentioned here i would think that the technical analysis would be the best in terms of making a profit and understanding the market, whereas the emotional analysis will be the worst as it may result in large losses when emotions run high. These are three distinct categories though, and i think they could be considered as rankings. Emotional is for beginners and technical is for experts.

[Crypto123 0]

14 hours ago, rezzougali1985 said:

Yes that is the most important analyse in trading for Forex or for the crypt currencies markets, the technical for knowing the trend direction using indicators and strategies, the basic or fundamental analyse is also important, following social politics and economic events, and the most important analyse is the psychology analyse it like you called here as emotional, its the training of how to keep your self and emotion before and inside and after the trade, hope i reach you topic by my opinion.

Thank you for giving your opinion on the topic, You wrote a good response, yes these three types are important and they differ from one person to another in the sense that there are some people who prefer technical analysis and some prefer basic analysis and others prefer emotional analysis. In general, I think everyone should use the method that best suits their abilities.

[Crypto123 0]

4 hours ago, wilbertson said:

I only knew the two, basic/fundamental analysis and technical analysis, the emotional analysis i never knew and sounds like a game of lucky to me.

Yes, emotional analysis is not used a lot. Most expert analysts rely on the first and second types. Some people follow their intuition and their emotions in the analysis or in buying and selling decisions. The analyst who depends on technical analysis does not allow his emotions to interfere in his decisions.

[duncun007 3577]

as someone who has been trading for 3 years now i can tell you that no analysis will ever tell you how the market will behave exactly but rather its just speculations that might be right or wrong.