technical analysis (Ta)

What means 'Technical Analysis'?

Technical Analysis is using several indicators and tools to evaluate a cryptocurrencies true value. The mathematical analysis of charts enables the trader to evaluate whether to buy or sell an asset.

History of 'Technical Analysis'

The modern indicators in Technical Analysis were originally invented by the Dow Theory introduced by Charles Dow in the years 1900-1902. In his theory Dow made two main assumptions relevant for the construction of the modern understanding of Technical Analysis:

  1. Market movement is not random, it rather moves in cycles and have certain trends
  2. Efficient market assumption (The price of a security truly reflects its real value as all informations is accessible for every individual)

Who uses 'Technical Analysis'?

The tools of Technical Analysis are used in short- and longterm price analyses for all kind of securities in the world of finance. Stocks, bonds, options, futures but as well in cryptocurrencies Technical Analysis can be analyzed and forecasted.

  1. Market movement is not random, it rather moves in cycles and have certain trends
  2. Efficient market assumption (The price of a security truly reflects its real value as all informations is accessible for every individual)

Specific indicators of 'technical analysis'

The most commonly used tools include the Fibonacci Retracement, the Relative Strength Index (RSI), the Simple Moving Average (SMA) and the Exponential Moving Average (EMA). If you are looking for specific explanations, have a look at our ‘Ultimate Cryptocurrency Trading Guide 2018’.

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