What is technical analysis? And why do traders use it?
Technical analysis is a method that relies on studying charts and previous price changes of cryptocurrencies, with the aim of predicting future price movements.
This type of analysis does not concern itself with project news or its intrinsic value, but rather focuses on price patterns and trading volume.
🔹 Traders use tools such as:
– Support and resistance lines
– Technical indicators like RSI and MACD
– Candlestick patterns
Technical analysis helps in determining:
📍 When to buy?
📍 When to sell?
📍 What is the overall market trend (bullish or bearish)?
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✅ Summary:
Technical analysis does not provide certain predictions, but it is considered a helpful tool for making informed decisions.
Learning it is a fundamental step for any successful trader.
📌 Stay tuned for the next lesson: What is fundamental analysis? And how does it differ from technical analysis?
