Future Trading on Binance: Charts, Indicators.
Price charts are the foundation of technical analysis.
* Line Charts: Depict the closing price at regular time intervals, creating a continuous line. They are useful for identifying general trends.
* Bar Charts: Show the high, low, open, and close prices for each time period. They provide more information than line charts.
* Candlestick Charts: Similar to bar charts but use colored "candles" to indicate whether the closing price was higher (green/blue) or lower (red) than the opening price. They are particularly popular because they easily highlight price patterns.
The choice of the appropriate timeframe depends on your trading strategy.
Key Technical Indicators.
* Moving Averages (MA, EMA): Calculate the average price of an asset over a specific period. They help smooth out price fluctuations and identify the direction of the trend. The Simple Moving Average (SMA) gives equal weight to all prices, while the Exponential Moving Average (EMA) gives more weight to recent prices, making it more sensitive to new changes.
* Relative Strength Index (RSI): A momentum oscillator that measures the speed and change of price movements. It ranges between 0 and 100. Readings above 70 typically suggest an overbought condition (potential correction), while readings below 30 suggest an oversold condition (potential rebound).
* Moving Average Convergence Divergence (MACD): A trend-following momentum indicator that shows the relationship between two moving averages. It consists of the MACD line, the signal line, and the histogram. Crosses of the lines and divergences can indicate potential trend changes.
* Bollinger Bands: Consist of a moving average and two standard deviations above and below it. They measure market volatility. When prices approach the upper bands, the asset may be overbought, while when they approach the lower bands, it may be oversold.
* Volume: Shows the number of assets that have changed hands in a specific time period.