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Common Leading & Lagging Indicators
We’ve already provided one example of each type of indicator. Relative Strength Index (RSI) is a leading indicator as it hints at whether the market is becoming overbought or oversold. Moving Averages, in contrast, rely on historic data and provide a continually updating retrospective view of average price behaviour. On Balance Volume We introduced On Balance Volume in…
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Leading & lagging indicators
What you’ll learn What are leading & lagging indicators? Common examples of each Indicators within crypto transactional data Data Indicators from the wider crypto economy As you start to decipher the world of cryptocurrency trading it might seem that you are overloaded with information and acronyms. At the basic level Learn Crypto’s section on how…
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Relative Strength Index (RSI)
Relative Strength Index, usually abbreviated to RSI is a useful indicator of whether a particular cryptocurrency is overbought – overvalued – or oversold – undervalued. It is what is known as an Oscillating Index, as it returns a value on a scale from 0-100. An RSI value above 70 tends to suggest overbought conditions, while…
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Moving Averages
A Moving Average is literally the average price measured for a fixed period that moves over time. It is best understood via an example. Bitcoins seven day moving average will average the price for the previous seven days and update that over time. A price chart will plot the moving average alongside the actual price…
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Measuring Volatility
Returning to bitcoin as our example, the amount by which its price goes up and down is measured by Volatility. Volatility is what determines the level of risk you take on in trying to make a successful trade. If you look at a daily bitcoin chart by eye, you’ll see peaks and troughs that look…
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What is Technical Analysis?
What you’ll learn The concept of volatility Understand Moving Averages Understand what Relative Strength Index If you’ve read every article in Learncrypto’s section introducing how to trade cryptocurrency you should, by now, understand two key distinctions. Taking long term positions based on Fundamentals – as an Investor – and short term decisions based on Technical…
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Common Volume Indicators
Momentum Increasing volume of buying will push the price of a cryptocurrency higher, but for that to continue, volume must be maintained. In that way, volume can be a good indicator of price momentum. Rising prices on declining volume can indicate declining momentum and potential reversal. Falling prices on declining volume can equally signal a…
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Total Volume & Market Efficiency
The total volume traded for a given cryptocurrency has a direct relationship with how volatile it is. Remember, price represents the balance of opinions between buyers and sellers. If an equal amount (in terms of volume) is being bought and sold then price will be stable, but stability suggests that people’s opinion about the price…
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Understanding crypto trading volume
What you’ll learn What does volume mean? Why is it important Common volume indicators Dangers within volume data If you’re sequentially following Learn crypto’s section on how to trade cryptocurrency, you’ll be gradually learning about the basic tools for understanding price patterns and signals. Learning how to trade cryptocurrency comes down to how successful you…
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Price Direction
The chart above is the for the same period as the simple line chart shown earlier in the article, except that it is annotated with Candlesticks for each 15 minute period. A green candle tells at a quick glance that the price increased during the period in question; a red candle that price fell. For…
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