What is Technical Analysis (TA)?

Technical analysts work in a different style. The basic idea behind technical analysis is that past price movements may indicate how the market is likely to behave in the future.

Technical analysts do not try to find out the initial value of an asset. Instead, they look at the history of trading activities and try to identify opportunities based on that. This can include analyzing price action, volume, chart patterns and the use of technical indicators, And many other charting tools. The goal of this analysis is to evaluate the strength or weakness of a particular market.

However, technical analysis is not just a tool for predicting the likelihood of future price movements. It can also be a useful framework for risk management. Because technical analysis provides a model for analyzing market structure, it makes trade management more specific and measurable. In this context, measuring risk is the first step to managing it. This is why some technical analysts may not be considered traders at all. They may use technical analysis only as a framework for risk management.

The practice of technical analysis can be applied to any financial market, and is widely used among cryptocurrency traders. But does technical analysis really work? Well, as we mentioned earlier, the evaluation of cryptocurrency markets is largely driven by speculation. This makes it an ideal field for technical analysts, as they can develop by considering only technical factors.