Published 2 weeks ago • 3 minute read

How to conduct technical analysis for cryptocurrency trading

Cryptocurrencies are a different beast than traditional assets. They’re highly volatile and can change value quickly, making them difficult to trade with traditional methods like technical analysis. However, there are still ways you can use technical analysis in cryptocurrency trading if you know what to look for and how it works!

Technical analysis is a way of forecasting the future performance of a financial instrument. It uses historical data to predict future trends and can help traders decide when to buy or sell cryptocurrencies.

Technical analysts look at charts for each cryptocurrency, which show information about its price movements over time. The most common chart types are moving averages (MA), Bollinger bands (BB), MACD lines, RSI indicators,s and Fibonacci retracement levels.

When taking a look at any chart, the first thing you’ll want to do is find the trend.

A good way of doing this is by looking at how the coin moves over time.

You will notice that when there is an upward trend, the value increases over time and vice-versa when it goes down. This can be seen in many coins and tokens on our platform where we have some indicators that show us if prices are moving up or down with price movements being used as an indicator of future potential profits or losses for investors who use financial instruments such as CFDs (contracts for difference).

The next step after finding out what type of pattern exists within charts would be identifying support points that help keep them stable while allowing them room for further growth before breaking through them again into new territory; these levels should also serve as resistance points upon which traders should place their stops once they've reached certain levels set by market participants themselves due with regard  to how much risk they're willing take based on their own personal preferences."

When trends are inverse of each other like this, what will typically happen is that they’ll eventually meet somewhere in the middle.

This is a good time to buy or sell. For example, if Bitcoin is trending downward and Ethereum is trending upward, then it's probably a good idea to hedge your bets by selling some BTC and buying ETH on an exchange like Binance or Coinbase.

A crypto trader can use support and resistance as part of his technical analysis to help determine entry and exit points for trades.

Support and resistance are points where the price of an asset has touched in the past. If a crypto trader is looking to buy or sell, he can use support and resistance as part of his technical analysis to help determine entry and exit points for trades.

For example, if you're expecting that Bitcoin's price will rise above $10k by tomorrow morning (the next trading day), then you may want to look at what happens when BTC falls below $9k today - this would be considered as "support." The fact that it held at this level last week shows how strong demand was there; if more people were buying BTC at these levels up until now then they'll continue doing so if they think it will continue rising (and most likely be bullish).

Use technical analysis to help you decide when to buy or sell cryptocurrencies.

Technical analysis is a way to predict the future price of a cryptocurrency. It's based on historical data and can help you make better predictions, but it isn't guaranteed to be accurate.


As you can see, there are a lot of different technical indicators that you can use in your analysis. For example, if you want to know whether or not the price of a currency is going up or down, then look at the chart. If it’s going up then buy! If it’s going down then sell! And remember that this is just one way of doing technical analysis – there are many others as well.



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