Title:
Mastering Technical analysis for long -term investments in cryptocurrency
Introduction
The world of cryptocurrencies has recorded a significant increase in popularity in the past ten years, with numerous offers for initial parts (ICO) and projects based on the blockchain that start every year. As a result, the investors came across the market and searched for quick advantages and high yields. However, this trend is not without risk. In today’s article, we will examine how technical analyzes can be used to achieve an advantage in long -term investments in cryptocurrencies.
What is technical analysis?
The technical analysis is a method for analyzing the financial markets by investigating various graphics and price models. It is about identifying the trends, models and signals that can absorb potential market movements. Technical analysts use various tools and indicators to analyze graphics and make predictions for future market behavior.
Why use technical analysis when investing cryptocurrencies?
Cryptocurrencies are known for their volatility and unpredictability and make the technical analysis a crucial instrument for investors when looking for long -term income. By using a technical analysis, you can:
- Identify trends : Technical indicators such as mobile average values, RSI (Relative Force Index) and Bollinger bands can help identify the price trends of cryptocurrencies.
- Prediction : By analyzing the graphics and the models, you can predict potential price movements so that you can make well -founded investment decisions.
- STOP-LOSS set and for lucrative levels : The technical analysis enables you to define the stop-loss values and non-profit values dependent on your risk tolerance and market expectations.
- Minimize the risk : Use of indicators and technical graphics You can minimize the effects of market fluctuations and reduce the risk of significant losses.
Popular technical analysis inspectors for investing cryptocurrencies
Here are some popular technical analysis insicators used in cryptocurrency investments:
- Middle Mobile (MA) : MA is a line table that calculates the average price of an asset over a certain period of time. It is used to identify trends and determine support and resistance levels.
- Relative resistance index (RSI) : RSI measures the size of the latest price changes to determine excessive or occurrence conditions in an asset.
- Bollinger stripes: Bollinger strips consist of a mobile average and two standard deviations drawn above and below. They are used to identify volatility and possible outbreaks.
- Cloud ichoku : Ichimoku is a complete technical analysis tool that combines several indicators, including red and green lines, clouds and channels.
- Stochastic oscillator : The stochastic oscillator measures the relationship between the price and the relative force to determine the conditions of over -rachat or occurrence.
How to use a technical analysis in cryptocurrency investment
Follow the following steps to start the technical analysis in investing cryptocurrencies:
- Select a cartography platform : Select a renowned cartography platform such as Tradingview or Coirigy to analyze your selected cryptocurrencies.
- Select indicators and tools : Select the indicators and tools that are best suited for your investment strategy, such as: B. medium -sized medium -sized, RSI bands, Bollinger, Cloud Ichimoku or the stochastic oscillator.
- Create a diagram : Create a graphic with the indicators and tools that have been selected for displaying your analysis.
- Analyze models and trends : Analyze graphics and models to identify movements and potential market trends.
- Define warnings and triggers : Define warnings and triggers according to your analysis, e.g. B. purchase or sales signals, trend reversations or outbreaks.