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Guide 2
Video 1: Introduction to technical analysis
Technical Analysis:
Introduction to technical analysis
Technical analysis is the study of the history (pattern, psychological condition) of the coin and the
prediction of whether the price will increase or decrease based on the history of the coin.
Things included in the technical analysis:
1. Candlestick - prediction
2. Support and resistance – consolidation
3. Indicators such as RSI, MACO, etc.
4. Time frame - very important
5. Fundamental Analysis
Video 2: Support and resistance explained in depth
1. Support:
support is the price level at which the price tends to bounce back after a downfall. At this level,
prices become more attractive for buyers to buy to increase the demand for the coin. At this level
of price demand usually moves upward and prevents further decline in the price.
resistance:
resistance is the price level at which the price of a coin fails to increase further due to high selling
pressure.
Note: time frame is very important in support and resistance. if you check the support and
resistance of an hour. This could not be much helpful. it would be more helpful if you check
support and resistance for more time.
Consolidation means when candles are move between the support and resistance.
Important Notes:
Crypto is the game of patient
Never invest your all investment at a single point/price.
Never only use a single indicator for any trade, use at least 3 indicators.
First practice for at least 10 trades. If your success rate is more than 70%, then take the 1 st trade with a
minimum amount e.g., $10.
Video 4: Learn to trade using RSI (Relative Strength Index)
What is RSI?
“Definition by trading view”
“The Relative Strength Index (RSI) is a well-versed momentum-based oscillator which is used to measure
the speed (velocity) as well as the change (magnitude) of directional price movements. Essentially RSI,
when graphed, provides a visual means to monitor both the current, as well as historical, strength and
weakness of a particular market. The strength or weakness is based on closing prices over the duration of
a specified trading period creating a reliable metric of price and momentum changes. Given the popularity
of cash-settled instruments (stock indexes) and leveraged financial products (the entire field of
derivatives); RSI has proven to be a viable indicator of price movements.”
How to set RSI?
Open your trading view account and select the coin that you want to analyze. Click on the full featured
chart under the heading of overview.
After that select a time frame according to your trade.
After the application of RSI, a new portion of this indicator is sown in the chart. (Note: every indicator
will be shown in a separate segment in the chart).
Click on the settings button, a new popup window will be open. Click on the Style. Upper band should be
80 and lower band should be 20. By default, these settings are 70 and 30. Length should be 14 under the
heading of INPUTS.
My Explanation:
RSI guides you when you have entered the market and when you can exit from the market. Entry means
when you can buy the coin and exit means when you can sell it out. The best time of entry into the market
is when the price hits the lower band, you can buy it and when its touches or cross the upper band you can
sell it.
When the price of the coin travels around the middle of the upper and lower band means between 40 and
60. It means price moves side base. This show price can be both sides up or down. This is called no
trading zone.
There are two types of trading.
1. Intraday trading:
In intraday trading, the trade will be open for 24 hours. Means trade will be closed in 24 hours
maximum with a small profit or loss. In intraday trade, a 1-minute chart, 5-minute chart, and 15-
minute chart are very useful.
2. Swing Trade
this trade will be open from 24 hours to one, two, or three weeks. You can close the trade when
feeling the price of the coin fulfills your desire. You can exit with your required profit. In swing
trade, a one-hour chart and 4 hours chart are very useful.
Note: Please don’t take any trade with only exercising a single indicator.
Video 5: Lecture - Dial indicator explained.
This indicator is available on www.tradingview.com and www.coingecko.com as well. Coingecko is
much better for this indicator in the about segment of the coin. There are five segments in the dial
indicator which are explained as follows.
Strong Buy:
This indicator shows that the market is bullish. There is a huge buying pressure in the market. Due to
buying pressure price is goes up behind any reason. The reason may a future prediction about the coin or
a huge investment is expected in near future in the coin etc.
Buy:
This indicator also shows that the market is bullish. Prices are start goes up due buying pressure in the
market. This is also no buying zone.
Neutral
Neutral means price of the coin goes side base or consolidate. At this stage price of the coin travels upper
and lower band of the RSI indicator. It does not touch support or resistance.
Sell:
This indicator shows that the bearish phase of the coin begins. Peoples are tending to sell the coin. this is
a good buying stage but buy small quantities.
Strong Sell:
When the dial indicator indicates strong sell, it shows the market is bearish. its means market faces huge
selling pressure due to any reason. The reason may be a that the market is expected to be crashed or any
news is being viral about the coin etc. this is the best buying stage according to this indicator.
Note: Please don’t invest all your fund at a single stage. Buy in parts and sell in parts. And don’t buy any
coin using a single indicator.
There us quote in the crypto just remember it.
“Buy the fear and sell the greed”
Video 5: 4EMA in-depth lecture - Theory, use case and scalping method
