Trading analysis is commonly referred to as technical analysis, such as forex, crypto which also has a price chart that moves by the law of supply and demand from investors.
Crypto Technical Analysis Indicator
Moving Average Atau MA
Moving Average is an indicator that is able to display the average of each price movement in a period. Moving Average is one indicator for most traders who want to try technical analysis. This is because the Moving Average is a fairly simple crypto trading indicator. You can calculate the average price movement over a long period of time, namely 50 days.
Simple Moving Average (SMA)
The Simple Moving Average, also known as SMA, has the character of the indicator, namely the average which is divided into several categories. The Simple Moving Average is plotted based on price data from each period. It aims to get the average price according to the day that the price data wants to calculate with the simple Moving Average method.
Exponential Moving Average
The exponential Moving Average (EMA) indicator is part of the first type of Moving Average that has been broken. The characteristic of the exponential is to focus on the latest price data so that the potential for more accurate analysis can lead to action on the latest market prices.
Relative Strength Index (RSI)
The next indicator is the relative strength index which cannot be separated from graphical analysis. The relative strength index is a part of crypto technical analysis which is an indicator of momentum and has a role to show the condition of assets. The relative strength index also serves to measure the magnitude of the latest price changes which will be displayed as an oscillator.
Moving Average Convergence Divergence
This indicator in crypto technical analysis is an indicator that is used to tie the momentum of an asset. Then the strategy will show the corresponding results between the two Moving Averages, namely the signal line and the MACD line.
Stochastic RSI / StochRSI
StochRSI is a momentum oscillator that is useful for determining the presence of oversold and overboard assets. The indicator is a derivative of the StochRSI but applies the insulator formula to the regular RSI.
Bollinger Bands / BB
BB is used to measure market volatility and oversold or overboard asset conditions. The indicator is divided into three lines, namely the upper, lower, and middle bands
Crypto Technical Analysis Through Candlestick
Candlestick Components
Candlesticks can show the open, high, low and close of the market for the day. Candles have a wide part called the body or Real body. The real body represents the price range between the opening and closing of a trade for the day. When the body is filled and black it means the close is lower than the open. If badi is empty it means the close is higher than the open.
Candlestick Chart Anatomy
Candlestick charts consist of candlesticks and wicks. or badi on a stick calendar is like a candlestick that reflects the difference between the open and close prices for a given period. The open and close prices are the prices of the first and last trades for that time period. when you don't see a candle or a very small candle, it means that the open and close prices are almost the same.
The wicks or tails on a candlestick are small thin lines above and below that represent the high and low prices of a given period. When the wick appears above the candle it indicates the highest price for the period. If there is no upper wick then the top of the candle is the highest price. The same thing happens to the wick at the bottom of the candle which shows the low price for a certain period. If there is no low wick then the bottom of the candle is the lowest price.
Candlestick Bar Color
Candlestick colors are white and black, green and red. White and green mean the price finished higher than that timeframe. This shows the closing price is above the open price. A black or red candle means that the price closed at a low level during that time frame.
White or green candlesticks indicate there is quite strong buying pressure. Generally this color gives a bullish price signal. But you still have to look at this in the context of market structure. Long black or red indicates significant selling pressure, this indicates the price is bearish.
Basic Candlestick Patterns
The movement of the candlestick sometimes looks random, other times the pattern forms a pattern that is often used by traders for analytical purposes. The pattern is divided into bullish and bearish. It indicates that the price is rising while a bearish pattern indicates that the price is falling. There really isn't a pattern that works all the time. This is because the pattern represents the trend of price movements and is not a guarantee.
Multiple Candlestick Patterns
There are various short-term trading strategies that are based on candlestick patterns. This indicates a potential trend reversal where the first bar has a smaller body and is completely swallowed up by the second bar. It is also called a bullish engulfing pattern when it appears at the end of a downtrend and it is at the end of an uptrend.
- Harami is a reversal pattern in which the second bar is completely inside the first bar and is of the opposite color. The Harami pattern has a second bar which is a doji when the opening and closing are effectively the same.
- There is always an evening star, which is a bearish reversal pattern that indicates a price reversal or price direction. This shows where the first bar has three ups. It has an upward slit and has a narrow body. The third bar closes below the midpoint, the first bar.
- The morningstar is a bearish reversal pattern where the first bar is long and black or red, followed by a short bar that has a lower gap. It is completed by a white or green stem which has a long body and closes above the midpoint of the first stem.
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