What do we mean by Technical Analysis to estimate Crypto Prices?
The increasing and decreasing demand for cryptocurrency determine its value. As the crypto market is volatile in nature, it is hard to predict where the prices will go. To analyse and predict the trend, various analysis of the crypto market is undertaken.
There are 3 types of Analysis that can help predict the price movements of a crypto. Let us understand how we use Technical Analysis to predict crypto prices.
Technical Analysis consists of studying various statistical factors like past price movements and demand to predict future prices. It makes use of Bar Charts to analyse the market trends. Such charts use “Candlesticks” to analyse the data.
How do Candlesticks help Traders?
Candlesticks are beneficial for the traders as it provides full details of how the price of cryptocurrency changed over the period of one trading session. It shows the change in price over a certain period of days, weeks and months.
Candlesticks look like a vertical rolling pin in which each has two thin lines and a thick rectangle in the middle.
How to read Candlesticks?
When the price goes up during the day, the candlestick turns green. While the bottom of the rectangle shows the price of crypto at the time of opening. And top of candlestick shows the price when the market closed.
When the price goes down, the candlestick turns red. Here, the bottom of the rectangle shows the price of crypto when the market closed and top of rectangle shows the price at market opening.
Candlestick charts turn out to be of great use for analysis done every hour during the whole day. It is in use for a long time and has proven to be very helpful to the traders.
