Technical Calculation: Using a chart to make decisions in cryptocurrency

The crypto currency world has experienced rapid growth and volatility over the years. As a result, merchants and investors focused on technical analysis as a way to make deliberate market decisions. The technical evaluation includes the use of charts, indicators and other visual tools for analysis of movement and price forms to predict future trends.

What is a technical evaluation?

Technical assessment is a method of assessing the value of security or assets based on its previous performance, not internal values, as defined in the basic analysis. To analyze historical data, diagrams and models require historical data analysis to identify trends, support, resistance and other key levels that can be used to make deliberate decision making.

How to use charts in technical evaluation

Charts are the basis of technical value in the cryptocurrency currency. They provide visual prices over time, allowing traders and investors to analyze models, trends and other market functions.

Here are some ways to use a chart in technical assessment:

• Determine the level of support and resistance : Cards can help determine the support zone and resistance where prices tend to bend or stop.

• Analyze trading volume : High sales often indicate strong buying pressure, while low volume may indicate poor sales pressure.

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Look for samples and trends : Identify the diagram of repeated patterns and trends such as triangular formations, wedges and shoulders.

• Use indicators

  : indicators such as variable average (MA), relative strength index (RSI), Bollinger belts and others can provide additional information on price movement and help recognize possible support or resistance areas.

Popular chart samples of cryptocurrency

Here are some popular chart models used by traders and investors for decision -making:

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Triangle Sample : The triangle is a common model in which prices form a small area associated with the range before they continue.

• Head and shoulder formation : Head and shoulder formation occurs when the price reaches the lowest point, forming a “head” and then bounces back to “shoulder”.

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The pledge : Wedges are similar to triangles, but they have two different sides: a small area associated with the range (“body”) and a larger range.

• Crossovers : Crossover occurs when one safety price exceeds other security, often indicates possible changes in market dynamics.

Scores in cryptocurrency

Indicators are mathematical calculations that help analyze price movement and identify potential trends or patterns. Some popular indicators used in the technical assessment are:

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Moving average (MA) : A variable middle row that denotes the average safety value over time.

• Relative strength index (RSI) : RSI measures the recent price size to determine the exaggerated or exceeded conditions.

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Bollinger bands : Bollinger’s scope is the standard Mas variation used to show volatility and identify possible trends.

Tips for using charts in cripto currency

Here are some tips on how to effectively use a chart in a technical estimate:

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Diversify your charts : Use more charts for different markets or active class analysis.

• Combine graphs with basic analysis : Combine technical analysis with basic analysis to obtain a comprehensive market understanding.

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Be continuous : Update your stairs as new data and events can affect market direction.

• Be patient : Technical evaluation is not accurate science; Be patient and give time schedules to maturity before deciding.