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In fact, newbies, F0, should not try to grasp too many technical analysis indicators.
Guys, if you follow groups and KOLs, you will see them drawing intricate charts, drawing elliot waves, fibonacci, Ichimoku clouds... all these advanced things, but in the end, what do you get out of it??? 🤔
👉Leave that knowledge behind. First of all, you should grasp for yourself the following:
The following basics have been covered:
1. MA and EMA:
These two have different calculation formulas, but are essentially just averages of the prices of many candles combined, then connected into one line.
=> Always remember that MA and EMA are also support and resistance levels. When the price touches them, there will definitely be a reaction, you can take advantage of it to long or short, swing trade.
I often use the combination of EMA 34, 89, 200, and 400. When setting up the moving average, keep the parameters a little far apart, because if they are too close together, it will not be meaningful.
2. Trendline:
Trendlines are straight lines, so you only need 2 points to draw a trendline. In the long run, many experienced people only need to rely on trendlines to be able to place trade orders.
Trendline actually also shows support and resistance levels, no different from MA and EMA. However, it will help create chart patterns, with a fairly high winning trade rate. You can learn patterns such as double tops, double bottoms, triple tops, triple bottoms, rising wedges, falling wedges, triangle patterns, butterfly patterns, etc.
3. MACD:
MACD is a fairly intuitive tool that helps you assess the strength or weakness of an uptrend or downtrend. In my experience, MACD is quite accurate in predicting large time frames, 1D – 1M. I am currently using MACD to assess tokens that can be started to buy.
4. RSI:
Regarding this indicator, F0 people only need to remember the two terms "overbought" and "oversold".
Ae set RSI parameter to 8, set lower limit to 20, upper limit to 80, of course neutral line will be 50. (RSI index will fluctuate in the range of 0 -100).
RSI below 20 means the token is oversold, and you can consider buying.
RSI above 80 means the token is overbought (overbought) and you can consider selling.
Another important element of RSI is divergence (I will have a more detailed analysis later).
Currently, many tokens have fallen into the oversold zone on large timeframes such as 1W, 1M. This is part of the reason why I have gradually spread out my capital.
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💥I guarantee that after mastering the 4 technical analysis indicators above, you will be able to make your own bets in this market.
After that, you guys should learn more about trading volume analysis, elliot waves, Fibonacci... it's not too late!😎
#cafebit