Chartology #1: Technical Trading
Buying low and selling high is often luck, but understanding trading charts and analyzing coin movements based on past market data can help your luck grow.
Given the popularity of our Chartology Twitter series, we’ve decided to introduce an expanded version of that short-form Twitter guide. We will tackle what Technical Analysis in crypto involves, what types of charts you could encounter, and how to decipher and identify bullish and bearish trends.
In this first introductory article of the Chartology series, we look at Technical Analysis.
A definition of Technical Analysis: A method of analyzing and predicting stock movements based on past market data, primarily price and volume.
That sounds quite complicated, but if you have been involved in Pollen Virtual, or followed a few conversations about Bitcoin price predictions, you would have undoubtedly seen people analyzing price movement charts — this is Technical Analysis.
Getting to know Technical Analysis
Technical Analysis is a way to predict future cryptocurrency prices by looking at patterns in past price movements. It involves studying charts and graphs and using different tools to try and decipher trends that could help you make profitable trades.
You might look at different charts and graphs, and use various indicators (we will delve into indicators later on in our Chartology series) to try and figure out if the price is going to go up or down.
Using technical analysis in crypto trading can help you make more informed decisions about when to buy and sell. By looking at past price movements and identifying trends and patterns, you can better understand where the market might be headed in the future. Plus, it can help you figure out when to get in and out of trades by looking at key support and resistance levels.
How to master Technical Analysis
Technical Analysis is, at its heart, a way to predict the future. But, accurately predicting the future is nearly impossible. However, if you are to become good at Technical Analysis, you will have the tools to make more informed trading decisions.
If you want to get good at technical analysis and use these skills on Pollen Virtual, there are a few things you’ll need to learn.
First, you’ll need to get familiar with financial markets — in this case, crypto — and how they work. Then, you’ll need to learn how to read charts and use different tools to identify trends and patterns. You’ll also need to understand technical indicators like moving averages and RSI, and keep up with news that could affect cryptocurrency prices.
If you follow along with our Chartology series, we will equip you with the information you need to start making sense of crypto price charts.
Look out for our next article, which will delve into the different types of charts there are, how to read them, and how they can help you on your journey to master Technical Trading.
This is information — not financial advice or recommendation.
The content and materials featured here are for your information and education only and are not attended to address your particular personal requirements. The information does not constitute financial advice or recommendation and should not be considered as such.
About Pollen
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