Hello to everybody,
I have question about chart analysis. Are there any differences betwen chart analysis in traditional stock exchange and crypto exchange? Considering that the crypto exchange is much more emotional in decision making? Can we use exactly the same analysis techniques or do we have to adjust them to our crypto reality? If yes, please give me some tips what I have to change that the analysis would be more accurate.
Quick answer: no. We
can still use the same techniques on analysis and whatnot, but we can't rely to them as a solid proof/correlation to future price movements because as you said it, crypto markets are more emotional compared to your regular stock markets. I dabbled a bit in cryptotrading, and there are only two indicators that I used most of the time: price together with the current news and the order book in all exchanges. Getting the general sentiment of the market towards the coin is a good start, and you can measure it by the price and what's on the news today. And what defines it further is the order book. Strong support on the buy side proves that the market is positive and is ready for a push. That's how I do it though, and it's going pretty well from me. Haven't used MACD and other common indicators as it only increases the noise to signal ratio in my analysis.