Technical Analysis For Crypto Beginners - The Ultimate Guide To Get You Started

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I often notice beginner traders get scared and confused by candlestick charts covered with lines and oscillators.

But having a strong knowledge of technical analysis (TA) is fundamental to your success as a trader.

And it doesn’t have to be complicated. TA essentially boils down to 4 things:

• Market cycles
• Support & resistance
• Chart patterns
• Technical indicators

Let’s go through them one by one.

1. Market cycles

Every asset regularly goes through 4 phases on all timeframes:

• Accumulation phase: The price moves sideways, volume is down and not much is happening. This is when savvy investors accumulate before the next bull run.
• Markup phase: Prices and trading volume skyrocket and you can profit from corrections to get a good entry before the next leg higher.
• Distribution phase: The price stops making higher highs and it’s the best time to take profits.
• Markdown phase: The price finally tumbles and some will panic-sell while others will decide to ride out the bear market.