ForexLive.com uses elements from technical analysis
Technical Analysis
In financial trading, technical analysis refers to the method of studying the previous history and price movements of an instrument, such as foreign exchange, stocks, commodities, etc.Key determinants include an asset’s historical price action, chart patterns, volume, and other mathematical based visual tools, in order to predict future movements of that instrument. Traders who utilize various means of technical analysis are known by a variety of terms, such as technical traders, technical analysts, or technicians.The crux behind technical analysis is the notion that past performance of a financial asset is a potential evidence for future activity. Unlike fundamental analysis, technical analysis does not bother with the causes of price fluctuations; it only deals with its effects. Therefore, technical traders diligently observe historical charts of the instrument they’re interested in trading. By applying a number of techniques, technical analysis ultimately helps forecast how prices will act, sometimes in relation to time as well. There are a multitude of visual tools available for the technical trader, with the most popular of them included in all of the major broker platforms today. Understanding Technical AnalysisTechnical analysis itself consists of a number of different methods, which generally fall into two main categories – leading indicators or lagging indicators. Leading indicators refer to those charting tools which enable the trader to predict the movement of an asset before it actually occurs. Such leading techniques include Fibonacci, pivot points, trend lines, divergence and harmonic trading, and are popular with traders who prefer to trade reversals. Lagging indicators are those visual tools which enable a trader to take advantage of a strong trend, entering upon it whilst in formation; such tools include the MACD, the Awesome Oscillator, and moving averages. Technical traders don’t all use the same tools of course, and even a trader that uses a particular indicator. For example, the Stochastic Oscillator will probably use it in a different manner to another trader using the same indicator or set of indicators, making technical analysis extremely subjective. Having said that, there is merit to technical trading, and as unintuitive as it may seem, previous price patterns do appear time and time again.As an increasing number of traders seek specific market points, the probability of those points holding significance also increases.
In financial trading, technical analysis refers to the method of studying the previous history and price movements of an instrument, such as foreign exchange, stocks, commodities, etc.Key determinants include an asset’s historical price action, chart patterns, volume, and other mathematical based visual tools, in order to predict future movements of that instrument. Traders who utilize various means of technical analysis are known by a variety of terms, such as technical traders, technical analysts, or technicians.The crux behind technical analysis is the notion that past performance of a financial asset is a potential evidence for future activity. Unlike fundamental analysis, technical analysis does not bother with the causes of price fluctuations; it only deals with its effects. Therefore, technical traders diligently observe historical charts of the instrument they’re interested in trading. By applying a number of techniques, technical analysis ultimately helps forecast how prices will act, sometimes in relation to time as well. There are a multitude of visual tools available for the technical trader, with the most popular of them included in all of the major broker platforms today. Understanding Technical AnalysisTechnical analysis itself consists of a number of different methods, which generally fall into two main categories – leading indicators or lagging indicators. Leading indicators refer to those charting tools which enable the trader to predict the movement of an asset before it actually occurs. Such leading techniques include Fibonacci, pivot points, trend lines, divergence and harmonic trading, and are popular with traders who prefer to trade reversals. Lagging indicators are those visual tools which enable a trader to take advantage of a strong trend, entering upon it whilst in formation; such tools include the MACD, the Awesome Oscillator, and moving averages. Technical traders don’t all use the same tools of course, and even a trader that uses a particular indicator. For example, the Stochastic Oscillator will probably use it in a different manner to another trader using the same indicator or set of indicators, making technical analysis extremely subjective. Having said that, there is merit to technical trading, and as unintuitive as it may seem, previous price patterns do appear time and time again.As an increasing number of traders seek specific market points, the probability of those points holding significance also increases.
Read this Term bitcoin
Bitcoin
Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger network called a blockchain. As Bitcoins are not issued or backed by any governments or central banks, it is considered to be legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In exchange for Bitcoin mining, computers receive rewards in the form of new Bitcoins. Over time, mining grows increasingly difficult, leading subsequent rewards to become smaller and smaller. Given the structure of code, there will only ever be 21 million Bitcoins in existence. However, as of 2020, there were already 18.3 million Bitcoins in circulation. Bitcoin Making HistorySince its launch back in 2009, Bitcoin has remained the most popular and largest cryptocurrency in terms of market cap in the world. Its popularity has also contributed significantly to the release of thousands of other cryptocurrencies, that are now known as altcoins. At its inception, the crypto market was originally hegemonic, though presently the landscape contains countless altcoins.Bitcoin has also been controversial since its original launch. It has been heavily criticized for its use in illegal transactions and money laundering given its decentralized nature.As Bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illicit behavior. Critics also point to its high electricity consumption for mining, rampant price volatility, and thefts from exchanges. Bitcoin has been seen by some as a speculative bubble given its lack of oversight.
Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger network called a blockchain. As Bitcoins are not issued or backed by any governments or central banks, it is considered to be legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In exchange for Bitcoin mining, computers receive rewards in the form of new Bitcoins. Over time, mining grows increasingly difficult, leading subsequent rewards to become smaller and smaller. Given the structure of code, there will only ever be 21 million Bitcoins in existence. However, as of 2020, there were already 18.3 million Bitcoins in circulation. Bitcoin Making HistorySince its launch back in 2009, Bitcoin has remained the most popular and largest cryptocurrency in terms of market cap in the world. Its popularity has also contributed significantly to the release of thousands of other cryptocurrencies, that are now known as altcoins. At its inception, the crypto market was originally hegemonic, though presently the landscape contains countless altcoins.Bitcoin has also been controversial since its original launch. It has been heavily criticized for its use in illegal transactions and money laundering given its decentralized nature.As Bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illicit behavior. Critics also point to its high electricity consumption for mining, rampant price volatility, and thefts from exchanges. Bitcoin has been seen by some as a speculative bubble given its lack of oversight.
Read this Term
Current Bitcoin Price is 47953 USD
As of 1332,GMT, Tuesday, 29 March 2022
Round numbers act as ‘magnets’ that, often, pull assets to them, especially when they are close. At Bitcoin’s current price being less than 5% below the round 50k mark, that is a magnet supporting many traders and media publishers thinking and discussing the possibility of Bitcoin reaching $50,000 , as marked below by the horizontal purple line.
Note also that the BTCUSD key price level of 50k is the middle of the range of the weekly chart, whereby its high is the all time high (ATH) of 69k reached in Nov 2021 and the lowest open of any weekly candle since.
Bitcoin Price Trend A trend is the price movement of a market or an asset in its general direction. Trendlines and/ channels that emphasize when the price is moving up, down, or sideways are used in technical analysis to identify trends.
Bitcoin continues to be trending up , on the daily timeframe, since 24 January 2022. However, traders should watch how Bitcoin price reacts if and when it reaches the upper band of the illustrated channel, since some traders and trading algorithms who have been in Long positions, may close or reduce their positions (thus selling, and increasing downwards pressure on the bitcoin price).
Bitcoin Candlestick Pattern A candlestick pattern is a graphical representation of price movement on a candlestick chart that many traders see as anticipating market action, based on historic patterns and price reactions.
Currently, on the monthly chart, Bitcoin is demonstrating a ‘bullish harami’, which is a candlestick chart indication that may be used to detect bear trend reversals , meaning trend transitions from a downtrend to an uptrend.
Bitcoin Moving Averages The goal of a simple moving average (SMA) is to calculate an average of the market's price over recent periods in order to discern the market's trend. The exponential moving average (EMA) is intended to give greater weight to current and most recent price data, which is seen to be more meaningful than older data. As a result, the EMA “reacts faster” to price movements.
Currently, Bitcoin price on the daily chart is above the 9 EMA, which is above the 20 EMA, so the bitcoin price daily trend is still quite bullish, according to these popular moving averages .
Bitcoin Volume Profile Volume profile, sometimes referred to as market profile, is an advanced charting analysis that shows trade activity over a set time period and at certain price levels.
The VAH is the ‘Value Area High’, which is the highest price in the Value Area, and traders often utilize it as a resistance level. Oftentimes, the price likes to “pierce” these resistances, trapping new bulls that enter a Long and bet on a breakout up above the resistance.
The below shows the volume profile of Bitcoin since the beginning of 2022 , where price may have pierced the previous VAH, and might in the near future find profit takers and trapped bulls (thus declining), even temporarily .
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