Post
Topic
Board Trading Discussion
Re: What tools do you use for technical analysis?
by
exstasie
on 09/09/2018, 21:44:26 UTC
Looking to get into crypto trading and I'm curious what tools do you use for technical analysis?

Volume analysis. Very high volume often indicates a reversal point, because it means large scale accumulation or distribution is happening. If you have access to it, horizontal volume profiles are really useful for identifying where volume-based support and resistance are on the chart.

Secondly, price pivots (highs and lows) and areas of sideways consolidation often represent support and resistance. These are often good areas to take profit and then wait for a new entry.

Thirdly, I really like Bollinger Bands. When the bands are tight (we call it "squeezing"), price usually trends hard once it breaks out of the bands. The upper and lower bands are useful as short term overbought/oversold signals, and price often reverts to the middle band (20MA).