Everything you need to know about technical analysis

Reading cryptocurrency charts is essential for traders to spot the best opportunities in the market, as technical analysis can help investors identify market trends and predict an asset's future price movements. Technical analysis refers to analyzing statistical trends collected over time to understand how the supply and demand of a specific asset affect future price changes. Reading crypto market charts, such as the Bitcoin price, can help investors make informed decisions based on when they expect bullish and bearish moves to end.

A bullish move refers to an upward price move driven by bulls, who are the buyers of an asset. A bearish move is a downward price move that is stamped on by the bears, the sellers of the asset. Technical analysis can help traders evaluate price trends and patterns on charts to find trading opportunities. The best crypto charts help track market movements, but they do come with a few caveats.

"Technical" refers to analyzing past trading activity and price variations of an asset, which technical analysts say can be useful predictors of future price movements of an asset. It can be used for any asset with historical trading data, such as stocks, futures , commodities, currencies and cryptocurrencies. Technical analysis was first introduced by Charles Dow, the founder and editor of the Wall Street Journal and the co-founder of Dow Jones & Company. Dow helped create the first stock index, the Dow Jones Transportation Index (DJT).

Dow's ideas were written into a series of editorials published in the Wall Street Journal, and after he died they were collected to create what is now known as the Dow Theory. Technical analysis, it is worth noting, has since evolved through years of research to include the patterns and signals we know today. The validity of technical analysis depends on whether the market has priced in all known information about a particular asset, implying that the asset is reasonably valued based on that information. Traders who use technical analysis and apply market psychology believe that history will eventually repeat itself.

Technical analysts can incorporate fundamental analysis into their trading strategy to determine if an asset is worth approaching and supplement their decisions with trading signal analysis to know when to buy and when to sell to maximize profits. Fundamental analysis is the study of financial information that affects the price of an asset to predict its potential growth. For a company's stock, fundamental analysis may include examining earnings, industry performance, and brand equity.

Thus, technical analysts try to identify bullish and bearish price movements through technical analysis to help traders make more informed decisions. You can also use this technique yourself for this purpose.