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Technical analysis strategies for Altcoins: A guide to Ethereum traders (ETH)
The world of cryptocurrencies has become more and more popular in recent years, new coins and chips appearing daily. While many traders focus on Bitcoin (BTC), Ethereum (ETH) has proven to be a solid choice for investors looking for altcoin profitability. In this article, we will explore some technical analysis strategies that can help ETH traders to make the knowledge and increase their chances of success.
understanding technical analysis
Before you sink into the specific strategies for ETH, it is essential to understand what the technical analysis is. The technical analysis involves studying graphs and models on a cryptocurrency exchange or a platform to predict future price movements. This method is based on historical data, tendencies and models that can be used to make informed investment decisions.
Key features of cryptocurrency graphs
Cryptocurrency graphs are essential for technical analysis strategies in crypto space. The most common types of diagrams include:
- Trendlines : These are horizontal or vertical lines drawn on a chart to indicate the direction of price movement.
- Support and resistance levels
: These are areas where the price tends to turn back or fall, indicating potential levels of support or resistance.
- Sifenic models : These models, such as the hammer or shooting star, can indicate tendencies, reverse or intervals.
- Rangings and Channel : These are technical indicators that help to identify trends and inversions.
Strategies for ETH traders
- The trend follows with mobile media (MA) : Use a 50 period MA to determine the short -term trend and a 200 period to establish the long -term trend. When the shorter MA MA crosses the long-term MA, it is a Bullish signal.
- Interruption strategies : Identify the potential levels of support and resistance, then look for a separation above or below them. Use candlestick models such as Hammer or Shooting Star to confirm the outbursts.
- Passage of the range with channels : Identify the channels on your graphs and use it as support and resistance levels. When the price comes off the channel, it is a bullish signal.
- Average reversal strategies : Look for coins that have been constantly trading over or below their average price. If a currency has traded over the average price for a long period, it may be due to a correction.
- Blollinge bands (BB) : Use BB to identify volatility and prices related to the range. When the price is detached from the upper or lower band, it is a bullish signal.
Additional strategies
- Ichimoku Cloud : This Japanese candle indicator helps to identify tendencies, support levels and resistance and other important technical indicators.
- Relative resistance index (RSI) : Use RSI to measure surveillance conditions and overcoming, which indicates potential price reversal.
- Keltner channels : These channels help to identify the prices of volatility and radius.
Conclusion
Technical analysis is a powerful tool for ETH traders who want to increase their chances of success in Altcoin market. By mastering various strategies, such as the trends that follow with MA, interruption strategies, channel trading, average reversal strategies and additional techniques such as Ichimoku Cloud and Bollinger, ETH traders can make knowledge and increase the potential profit.
important notes
- Note that technical analysis is not a guarantee of success and no strategy can guarantee yields.
- Always determine your historical data strategies before implementing them on live markets .
- Be up to date with market news, trends and analyzes to improve your trading approach .
By incorporating these technical analysis strategies in their trading plans, ETH traders can improve their chances of success and increase their wealth.
