Implement Fundamental Technical Analysis

Although memorizing chart patterns can be beneficial, grasping some fundamental technical analysis can improve your proficiency in interpreting charts. For those who are new to this field, I recommend familiarizing yourself with the following:

Support and Resistance Levels refer to the prices at which the cryptocurrency consistently halts its decline or ascent, respectively.

Volume serves to validate the strength of a price movement. Patterns that exhibit high volume during a breakout tend to be more trustworthy.

Moving Averages help to smooth out price data, resulting in a continuous line that simplifies the identification of the trend's direction. Simple moving averages (SMA) and exponential moving averages (EMA) are excellent starting points.

The Relative Strength Index (RSI) assesses the speed and variation of price movements on a scale from 0 to 100. Typically, an RSI exceeding 70 suggests overbought conditions (potentially signaling a sell), while an RSI below 30 indicates oversold conditions (potentially signaling a buy).

Moving Average Convergence Divergence (MACD) is a momentum indicator that follows trends, illustrating the relationship between two moving averages of a cryptocurrency's price. The MACD is derived by subtracting the 26-period EMA from the 12-period EMA.

A Stochastic Oscillator is a momentum indicator that contrasts a specific closing price of a cryptocurrency with a range of its prices over a defined period. It aids in identifying overbought and oversold levels, offering insights into possible reversal points.