Technical analysis is a way to predict changes in the value of an asset based on statistics on price fluctuations in the past under similar circumstances.
This method is based on three postulates:
in the price movement all the factors that influence the market are already laid;
price change is subject to market trends, that is, for a certain period of time, the course moves within an uptrend or downtrend;
all markets are cyclical and the price history is repeated regularly.
The main tools of technical analysis are price change charts, data on trading volume and analysis of supply and demand. For market forecasting, special figures, patterns and indicators are used. At the same time, almost no one immediately applies all the technical analysis tools. The trader himself determines with the help of which figures and indicators he is best able to predict market behavior, and then focuses on them.
It is important to understand that technical analysis only shows the likelihood of future price changes and makes no guarantees. Especially in the cryptocurrency market, which is characterized by high volatility and manipulation.