Technical analysis (TA) is an important strategy for making up to 90% in profit on TurboXBT short-term trades. It’s a method of analysing market data in order to predict future price movements. Times have changed in recent years, TA is no longer a strategy exclusive to Wall Street and top-level investors, it’s now incredibly popular amongst digital asset traders.
This guide will explain what TA is, how it works, and why you should use it when trading on TurboXBT.
What Is Technical Analysis?
Simply put, TA is the study of past and present prices and patterns to help determine the trajectory of an asset. The main idea behind TA is that historical trends and data can be applied to current situations, in doing so we can make predictions about future price movement.
For example, if BTC/USD has been trending upwards over the last few days or hours, we can assume that this trend could continue in the short-term. By examining the patterns displayed on the charts, we can then look at the past trends to better inform our decision.
How Does Technical Analysis Work?
There are two types of TA, fundamental analysis and charts. Fundamental analysis examines the underlying factors affecting the price of an asset, whereas charting focuses on looking at charts and graphs in order to identify trends. These are often used to come up with short-term predictions as well as long-term forecasts.
Why is Technical Analysis Important for Short-Term Trading?
TA is extremely useful when it comes to predicting price movement in the short term. This is because it helps us understand which assets have the potential for growth and which ones are most likely to decline.
It allows us to take advantage of opportunities before they become to big to ignore. For example, if there was a large gap between the high and lows of a particular coin, we could presume this asset is due for a correction; we would then create a short position in anticipation of this event.
TurboXBT makes TA easy as it offers two of the easiest charts to analyze on the market. This includes the Japanese Candlestick and Bar Charts. You don’t need to be an expert or pro to understand and benefit from TA, you just need to start using it.
Master Technical Analysis on TurboXBT
TA isn’t 100% right all the time, but it gives you a chance to make better and more profitable decisions. The best way to master this skill is through practice. You can use the TurboXBT demo account to get started!
