How To Use Technical Analysis For Long-Term Investments

Title: Acquisition of technical analysis for long -term cryptocurrency investments

Introduction

The cryptocurrency world has undergone a significant increase in popularity over the last decade, and many initial coin offers (ICOs) and blockchain -based projects are launched every year. As a result, investors are flowing in the market for quick profits and high returns. However, this trend is not without risks. In today’s article, we will look at how technical analysis can be used to benefit from long -term cryptocurrency investments.

What is technical analysis?

Technical analysis is a method of analysis of financial markets by studying different price operating charts and models. This includes identification of trends, models and signals, which may indicate possible market movements. Technical analysts use a variety of tools and indicators to analyze charts and make forecasts of future market behavior.

Why use technical analysis of cryptocurrency investments?

Cryptocurrencies are known for their volatility and unpredictability, making technical analysis of an essential tool for investors looking for long -term returns. With technical analysis you can:

1
Identify trends : Technical indicators such as variable average, RSI (relative strength index) and Bollinger bands can help determine the price trends of cryptocurrency.

• Predict price movement : By analyzing charts and patterns, you can anticipate possible price movements by allowing you to make conscious investment decisions.

3
Set stop losses and take profit levels : Technical analysis allows you to determine the stop-loss level and take the profit level based on your risk tolerance and market expectations.

• Reduce risk

  : With technical indicators and charts, you can reduce the impact of market oscillations and reduce the risk of significant losses.

popular technical analysis indicators for cryptocurrency investments

Here are some popular technical analysis indicators used in cryptocurrency investments:

1
variable average (MA) : MA is a line diagram that calculates the average price of an asset for a specified period. It is used to identify trends and determine the level of support and resistance.

• Relative Strength Index (RSI)

  

  : RSI measures a recent price change to determine excessive or selling conditions for the active.

3
Bollinger bands : Bollinger bands consist of variable middle and two standard devices depicted above and below it. They are used to identify volatility and possible breakdown.

• Ichimoku Cloud : Ichimoku is a comprehensive technical analysis tool that combines several indicators, including red and green lines, clouds and channels.

• Stochastic oscillator : Stochastic oscillator measures the relationship between price and relative resistance to determine excessively fighting or selling conditions.

How to apply technical analysis in cryptocurrency investments

To start with a technical analysis of cryptocurrency investments, follow these steps:

1
Choose a chart platform : To analyze selected cryptocurrencies, select a reputable chart platform, such as Tradingview or Coinigy.

• Select indicators and tools : Choose the indicators and tools that best match your investment strategy, such as changing average, RSI, Bollinger bands, ichimoku cloud or stochastic oscillator.

3
Create a chart : Create a chart with selected indicators and tools to visualize the analysis.

• Analyze models and trends : Analyze charts and models to identify possible market movements and trends.

• Set warnings and activators : Set warnings and activators based on your analysis, such as buying or selling signals, trend speeds or breakouts.