1. Technical Analysis:Utilizes drawing tools to identify and mark the general trend and value areas on the price chart.
- Start from a larger time frame (1W) to mark previous areas of support and resistance using thick horizontal lines. Progress to 1D and then to 4H.
- To initiate a trade, watch for breaks of support or resistance. Respected areas where price reverses can also be considered.
- Trades are preferably executed on a time frame of not less than 1H.
2.Fundamental Analysis:Involves delving deep into available information about crypto.
- Main considerations include market cap and total volume in the past 24 hours, available on Coinmarketcap.com.
- A surge in market cap signifies a bullish market, while a decline indicates a bearish market.
- Tip: Long trades are taken in a bullish market, avoiding shorts, and vice versa.
3.Sentimental Analysis: Focuses on what people are saying about crypto, including rumors from blogs and news feeds.
Conclusion:It's crucial to remember that crypto trading involves significant risks, and no analysis is 100%. Thus, proper risk management is essential, which will be discussed in my next post.
