Technical analysis of cryptocurrencies training

Technical analysis of cryptocurrencies training

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Trading is a profitable way to make money on the crypto market . It consists in making a profit from changes in the exchange rate of an asset. In order to earn as much as possible, it is important for a trader to identify the trend in time, not to miss the best time to make transactions. Technical analysis helps to solve this problem, which is called one of the main ways to study the current situation in the crypto market .

What is technical analysis and why is it important for a trader to master it?

Technical analysis is the study of data on changes in the price of a cryptocurrency depending on market activity. Analysis data is displayed on charts, where you can see supply and demand data, track the mood of market players and their behavior pattern. With the help of various analysis tools, traders make predictions in which direction the price of an asset will move.

Learning the technical analysis of the cryptocurrency market , it is easier for a trader to find the right time to open a position, as he understands in which direction the course is moving, which trend dominates. This method of analysis is necessary for traders, not investors, since the ability to determine the best entry point to the market allows the trader to make the most profitable transactions.

Technical analysis indicators

Technical analysis is divided into types that differ in the set of tools. First of all, traders use several types of charts, such as line charts, candlestick charts, and bars. The charts reflect the movement of the value of cryptocurrency assets in different periods, for example, within a minute, five minutes, throughout the day, week or month.

Along with charts, indicators are used, there are also many of them. For example, Fibonacci lines are an indicator that allows you to determine support and resistance levels. Popular indicators also include MACD, RSI, Bollinger Bands . Indicators should be chosen depending on the trading style and trading strategy used .

Three Pillars of Technical Analysis

Regardless of the tools a trader uses to study price changes, technical analysis is always based on a few assumptions. They can be formulated like this:

  • The price of a cryptocurrency or other digital asset already contains all the data that can affect the course. This means that by analyzing the history of changes in the value of an asset, you can recognize the trend, determine in which direction the price will move in the near future.

  • The behavior of the course is periodically repeated. If in the past certain factors caused the price to move in one direction or another, in the future these same factors are likely to lead to the same price movement.

  • The value of the asset moves in accordance with the dominant trend. In the crypto market, trends arise depending on supply and demand, and rates do not change by themselves. If players actively buy cryptocurrency , its price rises, and vice versa.

It should be understood that technical analysis is a tool for profitable short-term investments and transactions. This method does not take into account the potential of the asset in the long run. It is used by active traders who trade on the stock exchange daily, building an intraday trading strategy.

Effective training in the technical analysis of cryptocurrencies

Traders need technical analysis, as they make money on exchange rate fluctuations, and it is this type of analysis that allows you to determine the trend and choose the right time to buy or sell an asset. Price movement in the analysis is reflected by indicators, so you need to be able to read charts, notice patterns, and understand what certain indicators signal. For effective analysis, traders use specialized services, but they all have a number of features that need to be dealt with in detail.

Take the Cryptocurrency Technical Analysis Training for Beginners at Crypto Crew and master it in just a few weeks! We teach beginners to work effectively with charts and indicators, use the most popular and profitable trading strategies . In our crypto community , you will have daily access to useful information and training materials for rapid development in the cryptosphere .