Altcoins Technical Analysis Strategies: Guide to Ethereum (ETH) Traders
The world of cryptocurrencies has become more and more popular in recent years, and new coins and chips appear every day. Although many traders focus on bitcoin (BTC), Ethereum (ETH) has proven to be a solid choice for investors looking for Altcoin. In this article, we will study some technical analysis strategies that can help ETH dealers to make deliberate decisions and increase their chances of success.
understanding technical analysis
Before you sink into special ET strategies, it is important to understand what the technical analysis is. The technical analysis includes diagrams and model research on cryptocurrency exchange or platform to predict future price movements. This method is based on historical data, tendencies and models that can be used to make deliberate investment decisions.
Key features of cryptocurrency graphs
The cryptocurrency diagrams are essential for the technical analysis strategies in the cryptographic space. The most common types of diagrams are:
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Trendlines
: These are horizontal or vertical lines drawn in the graph to indicate the direction of price movement.
- Support and resistance levels : they denoter areas where the price tends to withdraw or decrease, indicating a possible level of support or resistance.
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Candle articles : These models, such as a hammer or a filming star, can indicate trends, coups or intervals.
- Rangings and Channel : These are technical indicators that help determine trends and corners.
ETH trader strategies
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Trend by variable average (MA) : Use 50 periods of periods to determine the short -term trend and the period of 200 mA to determine the long -term trend. When the shorter male is crossed above the long term, it is a bullish signal.
- Default strategies : Identify a possible level of support and resistance, then look for a separation above or below. Use a candlestick such as Hammer or Shooting Star to confirm the separation.
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Trade with channels : Identify channels in diagrams and use it as a support and resistance level. When the price comes out of the channel, it is a worse sign.
- Average reversal strategies : Look for constantly traded coins over or below the average price. If the currency has traded over average prices, it can be corrected.
- Bolninger strip (BB) : Use BB to identify volatility and prices related to the range. When the price comes out of the top or bottom, it is a bullish signal.
Additional strategies
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Cloud Ichimoku : This Japanese candle indicator helps to determine trends, support levels and resistance, as well as other important technical indicators.
- Relative resistance index (RSI)
: Use RSI to evaluate excessive and sold conditions, indicating possible price changes.
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Celner channels : These channels help to determine volatility and prices related to the range.
Conclusion
Technical analysis is a powerful tool for ETH traders who want to increase their successful opportunities on Altcoin market. By learning a variety of strategies, such as a tendency to follow, breaking strategies, channels range, medium reverse strategies and additional methods, such as Iichimoku and Bollinger cloud groups, ETH dealers can make conscious decisions and increase their profit potential.
important notes
- Note that technical analysis is a guarantee of success and no strategy can guarantee profitability.
- should always leave history data strategies before being implemented on direct markets .
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Be aware of news, market trends and analysis to improve your commercial approach .
Including these technical analysis strategies in their commercial plans, ETH dealers can improve their chances of success and increase wealth.
