Technical analysis and its application

By Your Crypto Boss on The CapitalThe main tool in the arsenal of any trader, from the beginner to a professional, is technical analysis. Most of the materials in the network, trading ideas, and strategies are devoted to the study of technical analysis. The search for the ideal market entry and exit of point, trend direction, trading robots, and much more is based on technical analysis. A century ago, the first traders-researchers made various parallels between the price behavior and psychology of market participants, finding coincidences and making notes, they were able to predict the further movement of stocks and commodities prices accurately enough. The result of their work was the appearance of technical analysis, indicators, and trading strategies that still work today.One of the founders of technical analysis is Charles Dow, co-founder of The Wall Street Journal, a well-known publication about the world of trading exchange and the industrial index of American companies Dow Jones. Dow put forward the fundamental principles of the technical analysis, which are still working today, even helping the “greenest” traders to learn the profession of a trader, by analyzing the chart of the asset value. For the moment, we’re not going to study in detail the 10 principles of Charles Dow, but going directly to the concrete examples for using those analysis.Graphic analysisGraphic analysis is the search for certain patterns that signal a continuation or reversal of a trend. These patterns form other patterns that can be easily found in a chart. Let’s look at the most popular of them and let’s find out why they are formed.“Double and triple top/Bottom”The formation of the figure double or triple top/bottom is the result of the fact that market participants failed to overcome a certain price level twice or three times, having dialed a good acceleration before trying to break down. This figure is considered to be a reversal model, i.e. due to its formation, there is a trend change. If we speak about the figure “Double top/Bottom,” the letter W or M is formed in the chart.Technical analysis and its application was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
Go to Source
Author: Your Crypto Boss

error: Alert: Content is protected !!