I dabble in trading equities, I follow fundamentals to make my stock picks and use technical analysis to determine my entries and exits.
I want to start show people that technical analysis does indeed work on trading cryptocurrencies. The charts below were generated using tradingview. This is not about how awesome i traded, just sharing the tools that I have found to be accurate and useful so far.
Moving averages, the average price over a set number of days - this measure acts as a support or resistance, a magnet if you will. Aside from moving averages I use pivots, historical areas where the price has hung around. The 50dma and 200dma are critical.
I also use what is called a stochastic RSI and MACD - these are momentum indicators and tell me if a ticker is about to enter an uptrend or down trend and how strong that move is. More information on these technical analysis tools can be found at http://www.investopedia.com/
Another part of technical analysis is visual. We are looking for candle stick patterns, repetition and trend lines. Trendlines often form into obvious patterns such as channels, wedges, pennants, etc. (more info on chart and candle stick patterns can be found at investing.com) . The above chart is bitcoin and a decent demonstration of how the trend lines converge to form a pattern.
Timeframes are also very important - they represent the above mentioned tools in a different manner as a function of time. 15min/30min and 1hr time frames are most important to day traders. Long holders should be looking to daily and weekly time frames -- yep it is shorter term outlook vs long term.
And with that, this mornings trade was in NXCBTC - the parabolic move had already occured but i still managed to sneak in for the last 10 % -- how you ask? the above tools, studied, learned and practiced.
#STUDY up on the moving averages tools, momentum indicators, pivots and trendlines, as i intend to share some of my knowledge and insight about how cryptocurrencies are trading! http://www.investopedia.com/
