OM Coin (MANTRA) Technical Analysis Framework:
When analyzing OM Coin (MANTRA), you would typically look at the following aspects:
* Price Action and Trend:
* Identify the current trend: Is OM in an uptrend, downtrend, or trading sideways (ranging)? You'd look at the overall direction of price movement on daily, weekly, and even monthly charts.
* Higher Highs/Higher Lows (Uptrend): In an uptrend, prices consistently make new highs and the pullbacks find support at higher levels.
* Lower Highs/Lower Lows (Downtrend): In a downtrend, prices consistently make new lows and bounces fail at lower levels.
* Consolidation/Range: Price moves within a defined upper and lower boundary.
* Support and Resistance Levels:
* Support: Price levels where buying interest is strong enough to prevent the price from falling further. These are typically previous swing lows or areas where price has bounced multiple times.
* Resistance: Price levels where selling pressure is strong enough to prevent the price from rising higher. These are typically previous swing highs or areas where price has been rejected multiple times.
* Significance: Strong support/resistance levels are often retested. A break above resistance can turn it into new support, and vice-versa.
* Volume Analysis:
* Confirming Trends: High volume on a price movement in the direction of the trend (e.g., high volume on an uptrending move) indicates conviction.
* Divergences: If price makes a new high but volume is declining, it can signal a weakening of the uptrend.
* Spikes: Sudden spikes in volume often accompany significant news or strong price movements, indicating increased interest.
* Moving Averages (MAs):
* Commonly used: 20-day, 50-day, 100-day, and 200-day Simple Moving Averages (SMA) or Exponential Moving Averages (EMA).
* Trend Confirmation: When price is above key moving averages (e.g., 50-day and 200-day), it generally indicates an uptrend. Below them, a downtrend.
