Technical analysis of crypto currencies

Traditional financial instruments include analysis tools that can be used for chart analysis. In this article we introduce you to the different tools of technical analysis related to the crypto currency market. But before we go into detail a few more information about the crypto market.

Table of Contents
Crypto Currency Market – Opportunities & Risks of Volatility
HODL vs. day trading
The Bull and the Bear / Bullish vs. Bearish
Long and short positions
fundamental analysis
The Technical Analysis – Terms & Methods explained
Support / Assistance
Resistance / Resistance
SMA – Simple Moving Average
Relative – Strength – Index (RSI)
The Stochastic Oscillator
Combination RSI and STOCH
Moving Average Convergence/Divergence (MACD)
Crypto Currency Market – Opportunities & Risks of Volatility
It should be noted at the outset that the crypto currency market is highly volatile. This means that the value of Bitcoin, Ripple and Co. is subject to strong price fluctuations. The more volatile a market, the more difficult it is to predict.

The opportunities and risks are actually self-explanatory. Due to the extreme price fluctuations, a lot of money can be earned but also lost within a short period of time. Therefore, the principle always applies: Never invest more than you can lose. Because the market is so volatile and sensitive, certain headlines can have extreme effects. Of course, there is also the risk of market manipulation, since there is relatively little capital in crypto currencies compared to traditional markets.

HODL vs. day trading

The term HODL is a bitcoin meme and describes nothing else than to hold crypto currencies for a long time and not to be influenced by market fluctuations. The HODLER intends to hold Bitcoin, Ethereum or other crypto currencies in the long term. There is no speculation of short-term gains.

Day trading is a short-term speculative interpretation for making daily profits. Crypto currencies – with the volatile markets – are of course optimal for day traders. The Daytrader does not aim to hoard Bitcoin and other crypto currencies, but wants to achieve as much as possible out of its use in a relatively short time. For day traders, brokers such as EToro* are better suited for crypto trading.

The Bull and the Bear / Bullish vs. Bearish

We speak of a bull market when prices continue to rise. The bull represents the upswing, is positive and optimistic. In practice, however, a long-running bull market is also seen as a bubble that could burst. A bear market is the opposite, the bear is pessimistic and represents falling prices. Before you can start, however, we recommend the broker eToro, because here you can deposit quickly via Paypal and start trading immediately.