Chapter 1
Hello good day. In this series of articles I want to show you how to start in this trading since nowadays and with this new world of crypto-medallions many have approached him without really knowing how.
Let's start by knowing what trading is. Trading is simply the action of buying and selling assets, in this case cryptomendas.
Very shortly, one would buy cheap and sell more expensive. Earn money. This part is simple, now we are going to see different ways to know when it will go up and when it will go down
First of all I want to tell you that this is not an exact science nor is it magic. The technical analysis requires a study of the historical graphs of a criptomendas in this case, and try to predict their future movements and anticipate them.
Therefore, the most important thing is to know how to read a graph.
To find the graphics of any cryptomendas I use https://es.tradingview.com/ you can register and have a free version.
Once on the page, select the currency you want to analyze, for example btc./usd and click on the interactive graph window and you will see a graph similar to this one,
Once on the page, select the currency you want to analyze, for example btc./usd and click on the interactive graph window and you will see a graph similar to this one. In the horizontal bar you will see the time, if you zoom in or out the image will increase or it will decrease the time segment.
In the vertical bar shows the price, to be a graph of the BTC shows the pair dollars in this case, if it were an alcoint would normally show the pair btc.
Now you wonder what those green and red bars mean. These are the Japanese candles and represent the change that the coin had during a certain time.
The green candles represent a price increase and the red candles a decrease.
The bottom of a green candle or the top of a red candle marks the initial price of a certain time and the top of a green candle or the bottom of a red candle the final price.
In addition to this the Japanese candles show us something very important that are the shadows, those vertical stripes that come out above or below the body of the candle that what they indicate are the variations that the market had during the session and which is very indicative .
The time of the session or of the candles will be selected in the upper part of the graph, being able to choose between candles of 1 min up to 1 month
After seeing what the Japanese candles are, he will ask himself what is good for us. Well, the market moves in trends and know how to identify those trends is essential. Well, if we enter a bearish trend we can have losses or stay trapped until the price rises again, if it does, to avoid losses.
For example, and returning to the btc graph, to know how to draw the trend lines, we must locate the inflection points, which are those in which the graph makes a significant change, that is to say joining the maximum or minimum points without cutting the graph.
In other words, we will not do the red lines because as we can see these cut the graph.
For an upward trend we will join the lower inflection points, taking as a reference between one line and another that these are as close as possible to 45º and for the descending trend we will take the higher inflection points.
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