If you believe that Technical Analysis was created by magical stock market elves and is completely based on chance, luck and crystal ball logic, this article is not for you.
This article is written for the trader looking to improve both the percentage profitability of his trading and his risk management strategy through the proper understanding of Technical Analysis principles. If you are the type of trader that has an open mind for learning new skills and taking on new challenges, congratulations, you have already won.
Trend lines show the…
Many of you would have heard the term Technical Analysis (TA). It is likely that you have a vague idea in your head about what it actually is and perhaps you have even started to implement or read some basic Technical Analysis on your own. It is important to have a firm grasp on what exactly TA is and how to use it before applying it to your cryptocurrency trades.
A brief definition of Technical Analysis via Investopedia:
“Technical analysis is a trading tool employed to evaluate securities and attempt to forecast their future movement by analyzing statistics gathered from…
In order to understand how you can use fundamental analysis to improve your trading and investing it is first important to understand exactly what the term fundamental analysis (FA) actually involves.
“Fundamental analysis is a method of evaluating a security in an attempt to measure its intrinsic value, by examining related economic, financial and other qualitative and quantitative factors”. — Investopedia
Fundamental analysts study anything that can affect the security’s value, including macroeconomic factors such as the overall economy and industry conditions, and microeconomic factors such as financial conditions and company management.
If you take a moment to think about…
Since the inception of cryptocurrency the quest to find a framework for fundamental analysis and token valuation has been a never ending journey. Very few investors have experience in predicting and anticipating the economic growth of new asset classes. There are no existing industries whose historical data directly correlates to the growth of cryptocurrency. One of the closest correlations would be the stock market during the 1970s — 1980s however even that is not a comparable match.
The distinct lack of publicly available financial metrics or regulated information of any kind means that accurate judgements are hard to make. Therefore…
The Fibonacci index is most actively used to calculate support and resistance levels for swings in price. Fibonacci retracement levels use horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before the trend continues in the original direction.
These levels are created by drawing a trendline between the high and low and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.
The Fibonacci Retracement indicator can be added to a chart in Tradingview as you can see in the image to the left.
To actually use the…
The Relative Strength Index (RSI) is one of the most powerful indicators across all markets, and the cryptocurrency market is no exception. It is a very simple indicator which makes it an ideal place to start learning technical analysis.
The RSI indicator’s main role is to identify the relationship between the price and the real offer/demand. Spotting areas where coins are at the peak of their strength, or bottom of their weakness is where this indicator becomes incredibly useful.
The market provides an overbought signal when the RSI line crosses the 70 and an oversold signal when the RSI line…
Keeping track of major upcoming events for your altcoins is very important! Fundamental events usually have a huge impact on the price of a coin. At CoinLoop we set a goal of building a simple and efficient display of cryptocurrency events so that you can easily be informed and take action.
Browse the latest airdrops, burns, hard forks, exchange listings, meet ups and much much more. You can add events to your Google, Apple or Outlook calendar in a single click as well as filter by coin, event type and event date.
Track your portfolio, technical indicator tools, view the most recent and relevant news, full cryptocurrency events calendar and more!
Fear, uncertainty and doubt; ‘FUD’ has always been (and always will be) a part of the cryptocurrency ecosystem. The way it’s dealt with needs work, a lot of work.
“No FUD” is usually the number one rule across every crypto related subreddit, forum or wiki. It’s looked down upon, often deleted by moderators and generally ignored.
Firstly, let’s not ignore that FUD affects equity markets too. It’s a complex issue which should symbolize the spread of false information in order to manipulate the price of an asset or class of assets. The problem in crypto, and why it’s so frowned…
The WT oscillator excels at following swings in a volatile market which is why this particular indicator is very useful when trading cryptocurrency.
Looking at the above chart you can see that I have circled each of the times the WT indicator has produced either a buy or sell signal as the two lines cross over and under each other. I have also marked with a horizontal line and a green (buy) or red (sell) arrow at exactly where the signal occurred on the chart.
The key to this indicator is in the ranges.
Major banks around the world have started banning purchases of Bitcoin and other cryptocurrencies on credit including banks in the United States, United Kingdom, Australia, Canada and Europe. There have been a number of reasons behind the ban with most banks opting that they are trying to protect their customers from a risky unregulated market. Massive returns on cryptocurrency markets in 2017 saw so much growth that major exchanges had to block users making accounts due to not being able to keep up with demand.
But do banks really care that much about people getting into debt on their credit…