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Importance Of Technical Analysis In
Cryptocurrency
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Every Cryptocurrency is
curious to buy
cryptocurrency in India and
abroad. This new digital
phenomenon has become
so popular among the
masses across the world.
The underlying factor which
has been responsible for its
growth is Bitcoin. Yes, this is
the only cryptocurrency
which made its debut on
3rd January 2009 by its
pseudonymous founder,
Satoshi Nakamoto.
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● Now being a crypto enthusiast, you need to know every aspect of
cryptocurrency, be it Bitcoin, altcoins, blockchain ledger, or any other
prominent part of the crypto world. But today, we are going to put our
emphasis on the technical analysis of cryptocurrency.
● Now, what is technical analysis? How does it work? Well, if you don’t have
enough idea about it, then know it today in this blog.
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What Do You Understand By Technical Analysis?
● By technical analysis, we can understand it as examining the trends via
statistics, collected from volume data and historical price, to classify trade
opportunities. This technical study revolves around noticing movements of
price, with the help of analytical tools to analyze asset’s strengths and
weaknesses. The application of technical analysis is done to any security
with ancient data including commodities, forex, stocks, and even
cryptocurrencies.
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Working Of Technical Analysis
● Besides knowing the basic concept of technical analysis, it is essential to
know about its working. A technical analysis comprises volume and price
chart signifying decisions by market participants taken in the past. This
information impacts decision of future participants in two manners:
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Psychological
● This form of technical analysis reveals about your past effects and your
current focus for the upcoming circumstances. We can understand like this,
some traders emphasize the price of an asset, bought by them. When the
price declines, they come with the decision to sell the asset at times it
crosses break again.
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Spontaneous
● Some traders can analyze patterns of charts and the ongoing trends that
seem very natural. They take steps according to selling and buying. If the
majority of participants adhere to a similar tactic, then it raises the
possibility of chart patterns adhering to possible results. This way the trend
will increase more with the joining of many participants.
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OHLC Charts
● Besides understanding technical analysis, you need to understand about
OHLC charts. OHLC stands for Open-High-Low-Close. These charts show the
bars known to be as ‘candlesticks’ which reveals the connectivity between
day’s prices that are either low, open, close, or high. There are two main
candles associated with it, these are:
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●
Bearish candle:
●
Bullish candle:
this appears in black or red colours indicating the
situation when closing falls under the opening.
this appears in white or green colours indicating the
situation when closing is upwards to opening.
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Candlestick Charting
● This type of charting belongs to the technical analysis which is prevalent in
Japan since the ancient period. This technique was used for finding rice
prices. This type of technique is calculated on simple patterns, but can also
vary in complicated groups. The sole objective of Candlestick charting is to
regulate market trends.
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Conclusion
The technical experts involved in it notice the price change and use
investigative tools to analyze the asset’s weakness as well as strengths.
The technical analysis applies to trade data related to cryptocurrencies
also. Overall, it gives you an update about the recent developments that
are taking place in the economic as well as the crypto sector. Studying
about technical analysis is as important as searching for topics like the
easiest way to buy cryptocurrency.
Sources
https://www.cryptoknowmics.com/news/easiest-way-to-buycryptocurrency
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Crypto news and articles
Exchange & wallet listing
Market & price analysis
Crypto discussion forum
ICO listing and rating
Crypto jobs marketplace
Features
Tokens and coin listing
Airdrop and event listing
DApp listing & review
Crypto gaming platform
ICO Launchpad
Blockchain tutorials and courses
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