What Technical Analysis Is All About In Analysing Stock Market.

Bitcoin has gained popularity and momentum as the world’s first truly digitalised currency, and we are almost sure that it is going to succeed as a commodity and a reserved currency. It is an instrument of disruption that gives back to people the control over their finances without the need for external management or protection. Bitcoin traders speculate on the prices of bitcoin following its volatile swings on bitcoin new and forecast and using real-time charts and technical analysis.

What is technical analysis?

The means of examining and predicting the price movement in a financial market is what we refer to as technical analysis. This uses market statistics and historical price charts to identify previous market patterns and come up with an equally accurate prediction of future price trajectories.

Technical Analysis is simply about Chart patterns based on past performance, buyers and sellers or demand and supply and support and resistance. Once you start relating these things with charts, you will see it in a completely different way.

In as much as the analysis of the trade may be accurate or well determined, it is never a 100% guaranteed analysis of future performance. Hence Technical Analysis, Open Interest Analysis, Volume Analysis and any other factor that may impact the price of the asset should all be combined to have a final report analysis before the trade.

There are obviously many obstacles in trading bitcoin and other cryptocurrencies, including the regulations, various untrusted trading platforms, scammers and theft, and many other things, therefore if the basic idea is useful enough it needs to be developed to ensure many people can use it in trade.

Most relevant market analysis and Forex trade education are offered by the trading platforms one chooses to use. Sites like AvaTrade provides a unique level of market analysis and uncompromised trading security other brokers may not provide.

Analysing stock market trends.

There are three basic types of trends that are interrelated to the four stages of the stock market.

Upward trend/Bull market. (Stage 2)

It is effortless to spot a stock that is in an uptrend. They move from the lower left of the chart to the top right of the chart. If you want to make money, you should always find stocks that are in an uptrend.

Downward/Bear market. (Stage 4)

The stock moving from the top left of the chart to the lower right of the chart is in a downward trend. It is very likely to lose money in a downward trend and therefore, you might want to learn how to short stocks if you want to make money when a stock fall.

Sideways/Top and Bottom. (Stage 1 and 3)

Once you see the trading lines in a zig-zag between 3 moving averages, it means the stock is in a sideways trend. At this stage, traders should be advised to stay away from the trade, as it’s in the risk of losing it all unless you are sophisticated enough to over sale or buy.