INTRODUCTION
Good day all hivians in this community, have you ever wondered how hive and other crypto prices are forecasted aside just merely looking at the news (fundamental analysis), how currencies are traded, and how people trade stocks (aside buying and holding for yearly increment and dividends), wonder no more guys I found the tool used or an alternative measure which is more reliable and contains both qualitative and quantitative analysis, this alternative or direct method used is Technical analysis, most of you guys have heard about it but might think it’s only for FX traders, some might have not, just stick longer and you will see why it isn’t. The reasons for you to stay longer to understand technical analysis is simply because you’re going to learn how and why this tool is important to hive and get the best deals possible. However, just a little spoiler, ever thought of selling your hive at the highest price possible but don’t know how, what your lacking is simply technical analysis. There are various other reasons also try to stick around.
UNDERSTANDING TECHNICAL ANALYSIS
Technical analysis is simply the method or technique of reading a crypto, FX and stocks charts which shows the statistically presentation of its price with the view of making future predictions. That just the simple way of seeing it, most people will say technical analysis is a language used to understand the movement of crypto currencies, stocks, FX, gold basically everything that can be viewed in a chart, because it represents the sentiment of people who have listened to the news and other indicates which are currently trading the market, for technical analysis, Japanese candlesticks are highly recommended. Which leads us to where do we get or see this chart to apply technical analysis ?, I know that’s really not the question on your mind, but still going to tell you, for us hivians primarily we see them on Binance and other exchange platform, or my recommendation Trading view. Whatever platform you use doesn’t really matter it all depends on the dialects of technical analysis you learn, that kind of selects the platform.
As earlier said the major objective of technical analysis is to be able to tell the next move of price (predict the future value of assets that can be viewed on chart be it a company stock or metal or even the American dollar, most importantly our hive coin). Technical analysis is a language and as such you have to understand the pronouns, adjectives and whatever people do to learn English, just kidding!!!. The components of all dialects in technical analysis include at least; chart patterns, candlestick patterns, support and resistance (order block and liquid zones), understanding uptrend, downtrend and consolidation. Technical analysis also includes; indicators which are most widely used. Those terms above will be explained below;
Chart patterns: they are simply structured movement of price which have showed overtime to mean the same thing, to be clear they are symbols price forms when it wants to sell or buy (not always visible) and are very easy to understand, they include double bottom (W), double top (M) and other variations, flags, triangle and pennants etc.
Candlestick patterns: these are similar to chart patterns but don't involve more than 3 candlestick to understand the move of price for a small time duration while chart patterns are of longer durations, they all don't appear every time but candlestick patterns are more frequent than chart patterns as the involve single, double and triple candlestick to form a pattern.
Support and resistance: these are junctions in price, they are areas where price has previous failed to go above or below (simply finds it hard to make a decision), this point are where most trades take trades from as it shows clearly than most what price is about to do, just to note not every technical analyst of charts does that.
Uptrend, downtrend, and consolidation: these are simply the categories of movement price makes which forms the lifecycle of each chart including hive, hive sometimes goes down below the price we know and keeps on going down (downtrend), or goes up and up (uptrend) or simply just stay in a particular price for a period (consolidation). Understanding this is the core of trading in my opinion, understanding involves quick recoginization of each kind of trend.
CONCLUSION
I do know that's not what you wanted to see (Conclusion), but my coming back to hive is to ensure quality and readable content which means my articles won't be long as a course itself, instead it will be a navigation to get a course or a framework you can rely on. This article is to show you why you need to hang on through out this course to create a second income stream or simply boost your hive Finance in terms of sell, buy or hold or simply know the stability of the platform, this article doesn't condem other method of analysis but is either an alternative or compliment, so do well to follow my post by placing a notification to see my posts as they contain key points to boost your current source of income hive or any other, or to add another source of income, the others won't be related to finance.
The next post is how to integrate technical analysis to hive also a feedback to continue on technical analysis will be needed to continue other technical analysis article. All engagements and shares is fully encouraged and appreciated.