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 analysis as a Trader, looking to take advantage of crypto’s price volatility.
Technical Analysis requires interpreting price movement and volume. So far we’ve looked at the basics of price – where it comes from, the role of exchanges and the kind of basic information provided as part of the price formation process.
This led to exploring the most fundamental aid to analysing price – the price chart – through candlesticks and volume metrics.
This layering of information allows you to view price history as a story and try and interpret the patterns and signals, to understand where the price narrative moves next.
On their own, however, these basic tools cannot tell you the whole price story, and provide enough detail to predict future price, which is, after all, your objective.
So the next step is to start adding indicators to your trading tool kit to better quantify price movement, which means understanding volatility.
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