Crypto Technical Analysis Fundamentals

Introduction

1. SIMPLE MOVING AVERAGE
2. EXPONENTIAL MOVING AVERAGE
3. MOVING AVERAGE CONVERGENCE DIVERGENCE

In a tab trader, click the +f sign , click the plus sign and look for the above tools

that's all the indicators you need

first the SMA

the SMA created a line graph that closes follow the price movements

this will help you identify support and resistance as well as the when the SMA passes through the SPV

you will notice some ups and downs

KINDLY ADD THE INDICATORS ONE AT A TIME

THIS IS VERY IMPORTANT

you will notice what is called a SHIFT IN PRICE VOLATILITY

will call it SPV for shot

never trade without identifying the SPV

the SPV indicates when the current market trend has ended

a green SPV means a bullish trend has started

normally a GREEN SPV will be at the end of a bearish trend

before the SPV note the trend of the market I.e downward or upwards

but an SPV does not indicate when to buy or sell

and a RED SPV is usually at the end of a bullish trend

a RED SPV indicates a bullish trend has started

this is an example of an SPV. note the size

you must have a bearish or a bullish trend BEFORE a PSV before you use the indicators

never enter a trend if that does not occur even if all the indicators are there

you might sell at a loss or your profit will not be much

1. if you see 2 PSV next to each other of different colours DO NOT ENTER

let's pick a coin

for example let's pick BTCD

first thing you do, select H4 or D4 time frame

this is called MAJOR TIME FRAME
Introduce four indicators into the chart by pressing the +f sign at the bottom of the screen, namely:

RSI RELATIVE STRENGTH INDEX

MACD MOVING AVERAGE CONVERGENCE AND DIVERGENCE

EMA EXPONENTIAL MOVING AVERAGE

WHY DO we need these indicators?

there are various indicators in trading but they are divided into two

indicators tell us about an event

LAGGING INDICATORS tell us when an event has happened.

they tell us when the price will go up or down and when to buy or sell BEFORE it occurs in the graph

these tell us when an event is about to happen

PRECEDING INDICATORS

since the indicator indicates after the event has occurred they don't help us much in selecting buy and sell points

as a trader this is what we need the most

the number one best indicator is RSI

NEXT is MACD

WHY?

RSI has an upper value of 75 and a lower value of 25

UNDERSTAND THIS.

WHEN THE RSI TOUCHES THE 25 level line or goes beyond it, you buy.
when the RSI TOUCHES the 75 level line or goes above it you sell.

let's look at RSI first

because they are indicators that can be used by default without adjusting

when the RSI PASSES BELOW THE 50 LEVEL LINE YOU SELL. WHEN IT PASSES ABOVE THE 50 LEVEL LINE YOU BUY

RULE ONE

here are two rules regarding RSI

I prefer when it goes beyond or above it

RULE TWO

you cannot use both rules at the same time

let me give examples

this is the current graph of BURST which shows RSI IS above the 75 level line indicating it is the best time to sell

RULE ONE applies

RULE TWO APPLIES IF I don't want to wait for long term when rule one will apply.

SECOND ANALYSIS OF RSI

that is the first analysis of RSI

when a bullish uptrend is about to occur the RSI shows a sharp swing up BEFORE prices start climbing

this is the best time to jump in and make good profit

an example

you can see the sharp rise IN RSI in this picture. this usually happens BEFORE the price graph at the top mirrors it.