With the development of the times, technical traders have developed more and more trend forms and technical signals, making technical analysis more and more practical and systematic.
Generally speaking, technical analysts focus on the following types of indicators:
price trend
chart pattern
Volume and Momentum Indicators
Oscillator
moving average
Support and resistance levels
People usually do not use any of the above indicators alone, but rather use multiple indicators in combination to identify suitable buying and selling points.
Technical analysis and fundamental analysis
Fundamental analysis and technical analysis are often considered two different investment styles: fundamental analysts try to calculate the intrinsic value of a token by studying everything from macroeconomics, project dynamics, and future narrative themes. However, technical analysts tend to measure the short-term supply and demand of tokens by observing historical data on token prices and trading volumes.
Typically, fundamental analysis is applied to long-term investments, using data that often spans several years. In contrast, technical analysis can be used on time frames of months, weeks, days or even minutes, allowing greater flexibility in analyzing short-term market trends.
Technical analysis uses chart information such as K-line charts, price patterns, and trading volumes. In addition, various technical indicators, such as MA, MACD, RSI, etc., are also widely used by traders.
You may have heard that value investors usually use fundamental analysis, while only speculators use technical analysis. This is a complete misunderstanding. In fact, in actual market trading, many professional traders use a combination of the two. Fundamental analysis is usually used to pick leading tokens, while technical analysis is used to find a suitable time to buy or sell.