Technical Analysis: Crypto Currencies.

Technical analysis is a popular tool used by traders to make informed decisions about when to buy or sell cryptocurrencies. The three most commonly used indicators in technical analysis are Moving Average Convergence Divergence (MACD), Bollinger Bands, and Relative Strength Index (RSI).

Moving Average Convergence Divergence (MACD)

The Moving Average Convergence Divergence (MACD) indicator is a momentum-based technical indicator that uses two exponential moving averages (EMAs) to analyze price trends. The MACD consists of a MACD line and a signal line, with the MACD line being the difference between the two EMAs and the signal line being a 9-period EMA of the MACD line.

When the MACD line crosses above the signal line, it is considered a bullish signal, indicating a possible uptrend in the market. Conversely, when the MACD line crosses below the signal line, it is considered a bearish signal, indicating a possible downtrend in the market.

Traders can use MACD to determine the strength and direction of the trend and to identify potential buying and selling opportunities.

Bollinger Bands

Bollinger Bands is another popular technical indicator used in cryptocurrency trading. It is a volatility-based indicator that uses a set of three lines, with the middle…