Things you might want to consider when analyzing a crypto asset 😮
Moving Averages (MAs) (The moving average helps to level the price data over a specified period by creating a constantly updated average price).
MA7 (Orange), MA25 (Purple), MA99 (Cyan):
Bollinger Bands (tool used to determine where prices are high and low relative to each other) These bands are composed of three lines: a simple moving average (the middle band) and an upper and lower band.
The upper and lower bands are typically two standard deviations above or below a 20-period simple moving average (SMA).
The bands widen and narrow as the volatility of the underlying asset changes.
Volume Trends:
- If the volume increases during significant price movements, that might indicate strong market interest.
- A reduction in volume during consolidation phases indicates lower trading interest.
MACD (Moving Average Convergence Divergence) helps to identify price trends, measure trend momentum, and identify market entry points for buying or selling. Consists of MACD Line & Signal Line.
If the MACD line is above the signal line, it might indicate bullish momentum.
RSI (Relative Strength Index):
- If an RSI above 70 that would suggest overbought conditions, while below 30 would suggest oversold.
- Monitoring for a move above 50 could indicate strengthening bullish momentum.
Stochastic RSI (The %K line compares the lowest low and the highest high of a given period to define a price range, then displays the last closing price as a percentage of this range. The %D line is a moving average of %K).
- Like RSI above 70 that would suggest overbought conditions, while below 30 would suggest oversold.
- A crossover of %K above %D from could signal bullish momentum.
- Monitoring for overbought or oversold conditions can provide additional trade signals.
KDJ Indicator (used to analyze and predict changes in stock trends and price patterns. Otherwise known as the random index.
Having an extra line called the J line. Values of %K and %D lines show if the security is overbought (over 80) or oversold (below 20). The moments of %K crossing %D are the moments for selling or buying. The J line represents the divergence of the %D value from the %K. The value of J can go beyond [0, 100] for %K and %D lines on the chart).
Of course, it is only a part of things that might be a good idea to look at. Please educate yourself, please do your research before investing your hars earned money 🙏