Major Terms to Know for Technical Analysis on Cryptocurrencies
TA always considers the history of a coin with price charts and trading volumes, no matter what the project does. As opposed to TA, fundamental analysis is more focused on establishing if a coin is over or undervalued.
A TA is a term used when you take existing, real-world data from cryptocurrency market and attempt to plot it forward in the hope of predicting where it will go next. TA, if done right allows you to forecast when the market will be bearish (trending down) or bullish (trending up).
If predicted correctly, this allows you to buy when the market price is low (buying on the dip) and sell when it is high this making a profit. In this guide, we’re going to go through the most basic elements you will see on a chart and explain how they work and its importance.
Before getting into it all it is extremely important to know that TA predicts an outcome from the possible futures taking into consideration the history of price, volume, and trends. So, you can never be too sure…