Crypto Market Analysis
Which type of analysis for crypto trading is best ?
Fortunately, the different types of market analysis complement each other.
In real-world markets, prices are constantly changing, and usually develop trends. Those changes in prices can and do affect fundamentals.
In order to study how the price of a currency pair moves, you need some sort of way to look at its historical and current price behavior.
A chart is simply a visual representation of a currency pair’s price over a set period of time.
It visualizes the trading activity that takes place during a single trading period (whether it’s 10 minutes, 4 hours, one day, or one week).
Price changes are a series of mostly random events, so our job as traders is to manage risk and assess probability and that’s where charting can help.
With a chart, it is easy to identify and analyze a currency pair’s movements, patterns, and tendencies.
Prices are plotted from left to right across the x-axis.
A price chart depicts changes in supply and demand.
A chart incorporates all known news, as well as traders’ current expectations of future news.
The “future news’ is now “known news”, and with this new information, traders adjust their expectations on future news. And the cycle repeats.