When it comes to analyzing the cryptocurrency trends for trading or investments etc. two significant types of analytical processes are considered. One is Fundamental analysis, and another is Technical Analysis.
Fundamental Analysis: It includes the assessment of the value of crypto assets by considering the core values and statistics to decide its viability for investment purposes.
Technical Analysis: It ponders upon the evaluation of the history of the price data (includes prices and volumes) to forecast the future price trend of the cryptocurrency.
Ways of Technical Analysis
Technical analysis involves a methodology that evaluates market activities in terms of statistics. It specifically uses price charts and other indicators for the prediction of market trends, which further influence the decisions of the investors.
Technical analysis can be carried out by using various methods. These methods use statistical figures, charting patterns or oscillators, or amalgamation of any of these two methods. Technical analysis indulges in future market trends referring to the past trading data. Three main tools are mainly used in technical analysis.
Charting Lines: These are the drawings or mapping of lines connecting the nodes where the price fluctuations are marked.
Charts: It is the identification of major chart patterns where price fluctuations and future price inclinations are observed.
Indicators and Oscillators: They use statistical tools or methods to identify trading signals.
Technical indicators are the tools used to analyze and predict market behavior. These indicators assist the traders in alerting them with market upswings and guiding them with the proper timing to carry out the deal.
These are the mathematical functions that calculate the correlations between the price fluctuations and volume shifts by using various parameters. These indicators collectively forecast the price trends of the coins.
Technical Indicators can predict long term and short term price indications in terms of volume, quality, or momentum.
Cryptohopper is the automated crypto trading platform where the subscribers can use more than 130 indicators and candle patterns to frame the strategy for the trading of cryptocurrencies, as well as key bots demanded by the crypto community, like the arbitrage and market-making bot.
This domain was registered in the Netherlands by two technocrat brothers in 2017. Applying their technical expertise in trading and web development, they developed this automated platform for technical novices. This platform doesn’t need any pre technical knowledge or even the crypto trading acumen to enter the trading.
Trading Under Cryptohopper
By registering email id, username, and password, any novice can start trading on this platform. A user-friendly guiding tour is available to understand the process on the website.
One can visit the online marketplace to select a variety of templates, signallers, or strategies to start the hopper. One this configuration is done, it can be applied to the exchange account and can start the deals instantly.
For successful trades, a thorough insight into the pricing structure is needed. This insight should be based on technical reports from the past, with an understanding of current trends and future trends. Cryptohopper thus provides expertise to purchase or sell crypto assets through its automated machinery.
Broadly the indicators are classified under four categories. These four categories cover most of the existing indicators.
- Volume Indicators
- Volatility indicators
- Moving Averages
- Momentum Indicators/Oscillator
Trading with Cryptohopper
Cryptohopper helps the users to automate the strategies for trading with the support of the indicators. The subscriber can select a suitable indicator/s according to his specific trading style and preferences for the market environment.
Volatility Indicators: Volatility indicators can be selected if the user prefers for small and frequent gains in trading. Bollinger bands are one of the popular indicators.
Volatile indicators measure the volatility of the price of the assets. If more volumes are entering the market, the market is more volatile. Thus, if the price is more volatile, it has fewer ranging possibilities, which favors longer positions.
Example: Bollinger bands, ATR, Standard Deviation, etc.
Moving Averages/ Trending Indicators: If the trader wants to go for long term investments, then Trend indicators can be selected. Most of the indicators fall under this category of indicators.
Trending indicators bring the fluctuating candle prices into a single uniform line. These indicators help to find out the price trends when the asset will be in reversal trend or ranging trend.
Examples are MACD, EMA, KAMA, SMA, etc. they all are different but can be learned to use them effectively.
Volume Indicator: Volume is the number of crypto assets or several contracts traded during a specific time. Represented by green and red bars, it indicates the trading and investment volumes.
In Forex and trade markets, this trading period is especially well defined, that is when the volume is higher, the markets are high with more liquidity.
In forex and stock markets, the period of trading is very well defined due to most of the traders operate at the beginning of the European, American, and Asian markets; that is, when the volume is higher, the market is trending more and there is more liquidity.
Examples: Market Volume, On Balance Volume (OBV) etc.
Momentum Indicators/Oscillators: They measure the current speed and strength of the price activity. And disclose the trend of the price if it is on rising or fall or oversold or overbought comparing to past prices. They generally are used along with other indicators to produce stronger signals.
For example, Stochastic, along with RSI indicators, are used in combo with each other to generate strong signals.
The user can select and combine all these different types of indicators to easily create a trading strategy that will trade tirelessly.
Create an account in less than a minute and start trading automatically with Cryptohopper by clicking here!