Welcome to the Technical Analysis Summary for Dogecoin — 7th September 2018.
This report investigates 4 popular technical analysis indicators:
The above indicators are used in technical analysis as tools for forecasting the direction of prices through the study of past market data, primarily price and volume.
They are based on the idea that the market for buying and selling digital currencies is not efficient and historic prices can be used to predict future price movements, and using these tools can be advantageous to investors and traders.
The graph below shows the MACD applied to the price of Dogecoin using daily price data for the last 40 days.
As shown in the chart above, the MACD is currently above the signal line, implying a bullish signal, indicating that it may be an optimal time to buy.
According to the MACD, a bullish signal suggests that the price of the asset is likely to experience upward momentum.
The graph below shows the RSI applied to the price of Steem based on daily price data for the last 40 days.
Since the RSI is currently above 70, this would indicate that Dogecoin is becoming overbought and that a price reversal to the downside is expected.
The graph below shows the Aroon Indicator using the price of Dogecoin over the last 40 days.
The Aroon indicators move above and below the centerline (50) and are bound between 0 and 100. These three levels can be explained as follows: When the Aroon-Up is above 50 and the Aroon-Down is below 50, the bulls have an edge. This indicates a greater propensity for new x-day highs than lows. The opposite is true for a downtrend. The bears have an edge when Aroon-Up is below 50 and Aroon-Down is above 50.
In the graph below, the Aroon-Up is above 50 and the Aroon-Down is below 50 indicating a bullish signal.
The graph below shows the OBV applied to the price of Dogecoin using daily price data for the last 40 days.
Please note that the above indicators can give false trade signals and use of such tools should be treated with caution. Blindly using technical pricing indicators without a general knowledge of fundamentals or an understanding of the currency being analysed is not advisable.
Thank you for reading
Source of data: www.coinmarketcap.com
