Investing and Trading in Cryptocurrency

Technical Analysis for Crypto

Explore how to use charts, patterns, and technical indicators to analyze the market and make informed trading decisions. Technical analysis helps traders evaluate trends and potential price movements using historical data.

1. Candlestick Charts

Candlestick charts show open, high, low, and close for a time period, helping you visualize momentum and sentiment.

Example: A green candle closes above its open (bullish). A red candle closes below its open (bearish). Patterns like Doji, Hammer, and Engulfing can hint at reversals.

2. Moving Averages (MA)

Moving averages smooth price to reveal the underlying trend.

SMA: Equal weight to each period’s price.
EMA: Heavier weight on recent prices—more responsive for short-term signals.

3. Relative Strength Index (RSI)

RSI (0–100) gauges momentum. Above 70 often signals overbought; below 30, oversold. It can flag potential reversal zones or confirm trend strength.

4. Support & Resistance Levels

Support is where buyers tend to step in; resistance is where sellers appear. Watching these zones helps plan entries, exits, and manage risk. Breakouts can precede strong trend continuation.

Summary

Technical analysis blends candlesticks, moving averages, RSI, and support/resistance to read market structure and improve timing. Combine with sound risk management for durability.

What's Next

Up next: Fundamental Analysis in Crypto—evaluate intrinsic value via technology, team, tokenomics, and market fit to complement your chart work.