What you’ll learn What are leading & lagging indicators? Common examples of each Indicators within crypto transactional data Data Indicators from the wider crypto economy As you start to decipher the world of cryptocurrency trading it might seem that you are overloaded with information and acronyms. At the basic level Learn Crypto’s section on how… Continue reading Leading & lagging indicators
Month: September 2022
Relative Strength Index (RSI)
Relative Strength Index, usually abbreviated to RSI is a useful indicator of whether a particular cryptocurrency is overbought – overvalued – or oversold – undervalued. It is what is known as an Oscillating Index, as it returns a value on a scale from 0-100. An RSI value above 70 tends to suggest overbought conditions, while… Continue reading Relative Strength Index (RSI)
Moving Averages
A Moving Average is literally the average price measured for a fixed period that moves over time. It is best understood via an example. Bitcoins seven day moving average will average the price for the previous seven days and update that over time. A price chart will plot the moving average alongside the actual price… Continue reading Moving Averages
Measuring Volatility
Returning to bitcoin as our example, the amount by which its price goes up and down is measured by Volatility. Volatility is what determines the level of risk you take on in trying to make a successful trade. If you look at a daily bitcoin chart by eye, you’ll see peaks and troughs that look… Continue reading Measuring Volatility
What is Technical Analysis?
What you’ll learn The concept of volatility Understand Moving Averages Understand what Relative Strength Index If you’ve read every article in Learncrypto’s section introducing how to trade cryptocurrency you should, by now, understand two key distinctions. Taking long term positions based on Fundamentals – as an Investor – and short term decisions based on Technical… Continue reading What is Technical Analysis?
Common Volume Indicators
Momentum Increasing volume of buying will push the price of a cryptocurrency higher, but for that to continue, volume must be maintained. In that way, volume can be a good indicator of price momentum. Rising prices on declining volume can indicate declining momentum and potential reversal. Falling prices on declining volume can equally signal a… Continue reading Common Volume Indicators
Total Volume & Market Efficiency
The total volume traded for a given cryptocurrency has a direct relationship with how volatile it is. Remember, price represents the balance of opinions between buyers and sellers. If an equal amount (in terms of volume) is being bought and sold then price will be stable, but stability suggests that people’s opinion about the price… Continue reading Total Volume & Market Efficiency
Understanding crypto trading volume
What you’ll learn What does volume mean? Why is it important Common volume indicators Dangers within volume data If you’re sequentially following Learn crypto’s section on how to trade cryptocurrency, you’ll be gradually learning about the basic tools for understanding price patterns and signals. Learning how to trade cryptocurrency comes down to how successful you… Continue reading Understanding crypto trading volume
Price Direction
The chart above is the for the same period as the simple line chart shown earlier in the article, except that it is annotated with Candlesticks for each 15 minute period. A green candle tells at a quick glance that the price increased during the period in question; a red candle that price fell. For… Continue reading Price Direction
Time & Candles
In your quest to understand where price is going it’s up to you to decide the time frame within which you want to operate, remembering the distinction between Trading – short term decision – and Investing – long term positions. Charts enable you to zoom out and look at the broadest possible time scale, or… Continue reading Time & Candles