Lesson one for beginners
📘 Lesson one: Introduction to technical analysis for beginners
🎯 The purpose of technical analysis:
To learn how to read the chart and understand when to buy or sell the cryptocurrency based on past price movement.
🕯️ First: What is a chart?
The chart is a tool that shows the price movement of the currency over a specific period.
Each candlestick represents:
Opening price
Closing price
Highest price
Lowest price
🔺 Green candle: price went up
🔻 Red candle: price went down
📈 Second: Trends
The market moves in three directions:
🔼 Uptrend: price is rising (buy opportunity)
🔽 Downtrend: price is falling (sell or wait opportunity)
⏸️ Sideways trend: price moves in a narrow range (cautious)
✍️ Rule: Do not trade against the trend.
📏 Third: Support and resistance
✅ Support: An area where the price has difficulty breaking down (price often rebounds from it).
❌ Resistance: An area where the price has difficulty breaking above (price often rebounds downwards).
✍️ If the price breaks resistance, it may become support and vice versa.
🧠 Fourth: What are you looking for as a beginner?
Is the price in a clear direction?
Is it approaching a support or resistance area?
Are there candles indicating a reversal like a hammer or doji?
Are you using a simple indicator like RSI or Moving Average (MA)?
✅ Most important tips:
Do not enter a trade without a clear reason (analysis).
Do not rely on luck, but on the evidence in the chart.
Learn patience; trading is not a game of chance.
Use capital management: do not risk more than 1–3% of your balance on a single trade
📘 Lesson two: Basic technical indicators for beginners
✅ What are technical indicators?
These are tools that help you understand:
Is the market in overbought or oversold condition?
Could the price reverse?
Is the momentum strong or weak?
1. Relative Strength Index (RSI)
📏 Range: from 0 to 100
🔼 If the RSI is above 70 → the market is in overbought condition (may reverse downwards)
🔽 If the RSI is below 30 → the market is in oversold condition (may reverse upwards)
> ✍️ Example: If you see RSI at 25, it might be a good buying opportunity if other signals appear.
2. Moving Average (MA)
It is the average price over a certain number of candles (for example, 50 or 200 candles).
📈 If the price is above the average → the trend is up
📉 If the price is below the average → the trend is down
> ✍️ It is often used to identify dynamic support and resistance.
3. MACD (Moving Average Convergence Divergence)
Consists of:
Fast line (EMA 12)
Slow line (EMA 26)
Histogram
🔄 Fast line crossing above slow line = Buy signal
🔄 Fast line crossing below slow line = Sell signal
