Technical analysis is a key tool in the arsenal of many cryptocurrency traders, helping them to make sense of the market’s ebbs and flows.
But technical analysis isn’t deterministic. It doesn’t tell you what will definitely happen, but rather, what’s likely to happen given the historical information as analyzed through the study of charts. For it to be effective, however, it needs to be done accurately, which is the tricky bit.
Whether trading or investing, cryptocurrencies come with huge risks as well as opportunities, due to their extreme volatility—so proceeding with caution is advised.
What is technical analysis?
Technical analysis is the study of price movements through the use of charts. Traders use TA to make money from price changes, even when a cryptocurrency goes down.
The main assumptions of TA include the following:
All information is reflected in the price
Human psychology tends to repeat over time
Statistical analysis can help uncover what the price may do next
Źródło: https://decrypt.co/79954/technical-analysis-explained-elementary-concepts-in-trading-cryptocurrency
