Technical Analysis 101: The Basics of Crypto TA

Support and Resistance Lines: While Support and Resistance lines are not necessarily a calculated indicator they provide some of the best technical insight on a number of charts. Many people accuse the Crypto trading world of not having a rhyme or reason in terms of its pricing charts. More times then not it can be seen quite easily that a simple horizontal trend line predicts the market perfectly. Using the multi-month chart below a trader could have easily drawn a heavy resistance line that has shown resistance a number of times before and made a great profit off of the resistance level in the market. 

               The highlighted section on the right is the right is when the prediction was made and the line's level held strong and the price immediately bounced off of it and dipped back down. Traders may critique this level and say it was just a coincidence due to the fact that it was broken multiple times before but if you notice during the times it broke through there was a much larger volume and this "pump and dump" quickly dipped back below.


Was this article helpful?
0 out of 1 found this helpful
Have more questions? Submit a request



Article is closed for comments.