📊 TECHNICAL ANALYSIS: AN ESSENTIAL TOOL FOR THE CRYPTO INVESTOR
Technical Analysis (TA) involves studying historical prices and volumes to forecast future market movements.
Here are the basics that every investor should know:
🔹 1. The trend
Bullish: higher highs and higher lows.
Bearish: lower highs and lower lows.
Sideways: the price oscillates within a range.
👉 Always identify the trend before taking a position.
🔹 2. Support and resistance
Support: level where the price tends to bounce (buy zone).
Resistance: level where the price tends to stall (sell zone).
👉 These zones are important psychological markers for traders.
🔹 3. Technical indicators
Some simple but powerful tools:
Moving Averages (MA): indicate the general direction of the market.
RSI (Relative Strength Index): measures the strength of a movement (overbought/oversold).
MACD: helps identify trend changes.
🔹 4. Volumes
A movement accompanied by high volume is more reliable than a movement with low volume.
💡 Tip:
Combine several tools, never rely on a single signal. TA does not predict the future 100%, but it increases your chances of making good decisions.
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