Analysis of the cryptocurrency price action with trendy lines and chadhery graphics
Cryptocurrency prices have been volatile in recent years, making it difficult for investors to make informed decisions. An effective way to analyze the action of prices is the use of trendy lines and graphic designer. In this article, we will explore how to use these tools to identify the trends and models in cryptocurrency markets.
What are the trend lines?
The trend lines are linear or curvilinear lines that connect the databases on a graph. They can be used to identify the direction of the price movement and provide support and resistance levels for trading decisions. There are two types of trend lines: horizontal and vertical.
* horizontal trend lines:
These lines are parallel to the price graph and indicate the long -term tendency of the market.
* Vertical trend lines: These lines converge at a certain point, indicating the short -term tendency of the market.
How to identify the trendy indications with graphic designer
Candela graphics are another useful tool for identifying trends in cryptocurrency markets. Here’s how to use them:
- Identifies the bullish candles or replies: looking for candles higher than their previous maximum (uprights) or lower than their previous minimums (bearish).
- Identifies the limits of the range: Use the candlestick table to identify the boundaries of the range, which are areas where prices have been exchanged between a certain level of price and another.
- Look for the breakouts: When a candle breaks above or under a limit of resistance or support, it can indicate a change of trend.
How to identify the trends with trendy lines
To use the trend lines effectively, it is necessary to identify the correct management of the market. Here’s how:
- Identify the levels of sovereign and hypernovamenti: Use the horizontal trend lines to identify the overload (price above a hyper -fired level) or hyper -time (price below a level of hypervempi).
- Identify support and resistance levels: Use the vertical trend lines to identify support and resistance levels, which are areas where prices tend to bounce.
- Search for trendy inversions:
When a candle breaks a trend line in the opposite direction of the trend, it can indicate an inversion.
Example: Action of the Bitcoin price
Let’s take a look at an example of how to analyze the action of prices using candle graphics and trendy lines:
| Date | High | Bass | Close |
| — | — | — | — |
| 2021-01-01 | $ 23,500 | $ 22,800 | $ 23,200 |
| 2021-01-02 | $ 24.000 | $ 23,400 | $ 24,100 |
| 2021-01-03 | $ 25,300 | $ 24,900 | $ 26,200 |
In this example, the graphic descent shows a bullish trend with a candlestick higher than its previous maximum (white candle). The horizontal trend line converges at a level of resistance of $ 26,000.
Using these data, it is possible to identify support and resistance levels for your trading decisions. For example:
- If the price reaches the upper limit of the graph (black vertical line), it can indicate a potential purchase signal.
- If the price drops below the lower limit of the graph (red vertical line), it can indicate a potential sales signal.
Conclusion
The analysis of the policy prices of the cryptocurrency using trendy lines and graphic designers can help you identify trends and models, making it easier to make informed trading decisions. By understanding how to use these tools effectively, you can improve your success possibilities in cryptocurrency markets.