When I first entered the cryptocurrency world, looking at the candlestick chart felt like reading a foreign language. I had no idea what moving averages, MACD, or trading volume meant; I could only blindly buy based on others' recommendations, which led to significant losses. Later, I spent 3 months learning to analyze the market using three basic tools, and since then, I no longer relied on others' recommendations and could accurately judge buying and selling opportunities myself.
Core viewpoint: For ordinary people, it is not necessary to master complex technical analysis. As long as you become familiar with a few basic tools, you can handle most market situations. The core of technical analysis is probability, not absolutes; the key is to use tools to increase the probability of making money.
Practical session, three essential market analysis tools for beginners: First, Moving Averages (MA). Moving averages are the most basic and practical tools; I commonly use the 20-day moving average and the 60-day moving average. When the price is running above the moving average, it indicates an upward trend, and you can consider holding; when the price falls below the moving average, it indicates that the trend may reverse, and you should stop loss in time. Second, Trading Volume (VOL). Trading volume is the 'touchstone' of price; if the price rises while the trading volume increases, it indicates that the rise has support and is a real market trend; if the price rises but the trading volume decreases, it may be a false rise, and it is highly likely to fall afterwards. Third, Relative Strength Index (RSI). RSI can determine the market's overbought and oversold conditions, with a range of 0-100. When RSI is greater than 70, it indicates that the market is in an overbought state and may correct; when RSI is less than 30, it indicates that the market is in an oversold state and may rebound.
Here I share a simple analysis strategy: When the price is above the 20-day moving average, the trading volume increases, and the RSI is not above 70, you can consider buying; when the price falls below the 20-day moving average, the trading volume decreases, and the RSI is less than 30, you can consider selling. I have tried this strategy many times, and the accuracy rate is over 60%, which is sufficient for beginners.
Many people think technical analysis is difficult, but they are actually complicating simple things. Beginners do not need to strive to master all indicators; as long as they become familiar with one or two tools and develop their own trading system, they can establish themselves in the cryptocurrency market.
Ending benefits: Follow me, @男神说币 in the next issue I will explain in detail the usage methods and practical skills of each tool with a combination of images and text, so even beginners with no foundation can easily learn. Do you need me to organize commonly used technical analysis indicators into a manual for easy reference at any time? #加密市场反弹 $BTC
