Understanding Technical Analysis in Crypto Trading
Technical analysis is a method used to evaluate and forecast price movements by analyzing historical market data, primarily price and volume.
It involves studying charts and patterns to identify trends, reversals, and potential entry or exit points.
Traders use tools like moving averages, RSI, MACD, and Fibonacci retracements for insights.
Unlike fundamental analysis, it doesn't focus on the coin's technology or news.
It assumes that all known information is already reflected in the price.
Patterns like head and shoulders, triangles, and double tops/bottoms are commonly analyzed.
Support and resistance levels help in setting stop-loss and target zones.
Successful technical analysis requires practice, discipline, and continuous learning.
