Are you a newbie that recently learned about cryptocurrency and now wants to take a shot at it?
Well, that’s not how it works and you shouldn’t trade like this either. Trading requires extensive knowledge and research, and without that, you’ll just be gambling with your hard-earned money -don’t!.
Before making your first trade, you need to understand how to read a technical chart, what to look for in it and how to predict any increase or decrease in price and most importantly trading with the best brokers.
Intro to Technical Chart Analysis
Starting with the basics, the technical chart allows you great insight in the performance of any crypto currency and using different indicators and factors, experienced traders are able to accurately predict the pattern of any digital currency’s value.As a beginner forex trader you should check a list of best forex brokers for beginners Let’s start with the basics.
Different Time Frames
The first thing to set or look for when you open a technical chart is the time frame. You’ll notice several options of time frames ranging from 1 minute interval to monthly interval. Don’t worry. You do not have to use all time frames. Different time frames are for different types of traders. If you plan on making intra-day trading, 1 minute to 15 minutes time frame options are for you. On the other hand, long-term traders use weekly or monthly trading charts. This gives them insight into the trading value of any asset over a period of weeks to months.
Candlesticks
Candlesticks are the most common method of analyzing price change of any coin. Depending on the timeframe that you’ve selected, candlesticks show the maximum and minimum price of a coin in that particular time frame. It shows whether the coin has moved up or down in its value in that time frame. For example, if you’ve set the time frame of 15 minutes, the candlestick will show the maximum and minimum price of that coin in the past 15 minutes. It’ll also show whether the coin has moved up or down its value in that interval. You can set different colors for candlesticks moving up and down.
Indicators- step up a notch!
After you’ve understood the basics of chart analysis, you can start learning about indicators. Experienced professional traders use a wide range of indicators in different combinations, to be able to predict price accurately. From moving average to momentum indicator, there are innumerous indicators that you can learn about and apply to accurately predict the price of any coin. These indicators are used in light of past patterns of the variation in coin value, to accurately predict the future pattern of the coin’s value. It is extremely important that you understand the combinations of different indicators, before you start trading based on indicators.
Don’t try solo!
Understanding the basics of chart analysis does make one feel confident enough to trade solo and go all in. But, don’t make the same mistakes. There are sharks that create false images in the crypto world that can only be understood through experience and extensive knowledge. For this, if you’re living in India, it is best that you take assistance from experienced best forex brokers in india before investing any huge sum.
