Technical analysis of cryptocurrence **
The cryptocurrence world has a become exponent in recent yourers, with manny in investors and traders to be benefit for possable returns. As a result, technica analysis methods has been essentially tools for understanding and prediction of thees.
In this article, we will give some of the most popular analysis methods using the in cryptocurrene. We descus their strangths, weaknessesses and best practices, as wells to the examples of the to to to to to to to to to to to get real scenarios.
What is technica analysis?
Technical analysis is a primarily analysis method to a predict future of the movements. It is based on the idea that previous to the performance dos indication indicades, but on the current brand conditions, trands and models. Technical analysts are available different tools and indicastors to identifying since trends, support and resistance levels, as is market signals.
Chart Models 5
Diagram models are graphical repressions of the price of life. They provide a valuable insight in insight Come common chart models include:
* Head and Shoulder
:
* Double top/bottom : Two conseccutive tops or bottoms that eventual collapse.
* Red headers : one to the head and shouldn.
2. Variable average scress
Variable average (MA) are mathematical calculations that smooth out of the fluctuations over time. They provide one walue to the price of cryptocurrency, taking into account all histil thel the present of the press. The total MAS is:
* Simple variable average (sma) : The average of price of cryptocurrence wathin a certain period.
* Exponential variable average (EMA) : The weight of variable average, it is the greater imports to the latt.
3. Relative Power Index (RSI)
RSI is apulse impulse indicator that measures recently from the chaanges. It ranges from 0 to
* Excessive : Value above 70, indicing excessive purchase pressure.
* Excessive : Value below 30, indicating excessive sales.
Bollinger dryups 4 **
Bollinger bands are an indicator of volatility that compares
* Upper Bar : Upper border above the current.
* Lowest Lane : Lower below current price.
* bandwidth : range between the two bands, indicating volatility and possable brakdown.
5. Support and Resistance Levels
The level of support and resistance is crutically in the technica analysis. They depict areas where cryptocurrence is a likely to bounce or fall back. Common support levels include:
* Short -term Support : Level below it is unlikely to rose.
* Long -term Support : Level above it will be a likely to drip.
The resistance level is the one of the support level, it’s mes areas are a fair orlower. Examples of some poptocurrency resistance are::
- Bitcoin (BTC): $6000-7000 USD
- Ethereum (ETH): 400-500 USD
6th Trend scres
The trend indicators the overworthy and stringth of the cryptocurrence of life.
* Stochastic Oscilator :
* MacD (variable average convergence deviation) : A pulse indicator that compares the sped of two variable average.
** 7.
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