Technical analysis (TA) of a cryptocurrency pair is the process of analyzing price data to forecast future movements based on historical data. Here is a step-by-step plan for conducting technical analysis:

1. Data collection

• Choose a trading platform with access to charts and historical data (e.g., TradingView, Binance, Bybit).

• Ensure you have access to data for the cryptocurrency pair of interest (e.g., BTC/ETH).

2. Timeframe selection

• Define the goal of the analysis:

• Short-term analysis: use shorter timeframes (5M, 15M, 1H).

• Long-term analysis: analyze daily or weekly charts (1D, 1W).

3. Chart construction

• Set the chart type: candlestick charts are most commonly used, where each candle shows the price movement over a certain period.

4. Trend identification

• Determine whether the pair is in an uptrend, downtrend, or sideways trend. To do this:

• Use trend lines.

• Apply moving averages (MA, EMA).

5. Analysis of support and resistance levels

• Identify key levels where the price is likely to pause, reverse, or accelerate:

• Find local minima and maxima.

• Use tools like Fibonacci or horizontal lines.

6. Application of technical indicators

Add indicators to confirm the analysis:

• Trend indicators:

• Moving Averages (SMA, EMA).

• Average Directional Index (ADX).

• Oscillators:

• RSI (Relative Strength Index) — determines overbought/oversold conditions.

• MACD — signals trend changes.

• Volume:

• Analyze trading volume to confirm movements.

7. Pattern identification

• Find classic chart patterns:

• Triangles (symmetrical, ascending, descending).

• Head and shoulders.

• Double bottom/double top.

• Flags or pennants.

8. Considering market sentiment

• Check the Fear and Greed Index.

• Assess the market participants' sentiment (bullish/bearish).

9. Trade planning

• Set entry and exit points based on analysis.

• Determine stop-loss and take-profit levels.

10. Monitoring and adjustment

• Regularly monitor price changes and adjust your plan.

Advice:

Always combine technical analysis with fundamental analysis and consider current news that may affect the market.