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General DiscussionTechnical analysis indicators and what they mean

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tabrisli
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Technical analysis indicators and what they mean

Postby tabrisli » Fri Dec 08, 2017 12:20 pm

(Check out the charting tool section for charting tool recommendations and discussions).
In this forum, the community will share the technical analysis indicators we use and what it means to help traders plan and strategise.
Feel free to commend ant discuss, we are all here to share and learn.

The charges below assumes you know how to read candlestick charts.
In simple terms:
  • One candle stick represent a time period of your selection
  • Green Candlestick: in that time period, the value of the coin started at the bottom of the candle stick and finished at the top of the candle stick.
  • Red Candlestick: in that time period, the value of the coin started at the top of the candlestick and end at the bottom of the candle stick.
  • Wicks: the wicks of the candle sticks indicate the sell and buy bids that traders didn't get realised. Red wicks indicated the price the sellers tried to push down but not realised as buyers pushed the prices up. And the Vice Versa is true, green wicks are buyers trying to push the price up but got pushed down by the sellers.



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tabrisli
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Re: Technical analysis indicators and what they mean

Postby tabrisli » Fri Dec 08, 2017 12:24 pm

Indicator: Find Market Bottom
From: Tradingview.com
How to invoke: From indicators
marketbottom.JPG
market bottom indicator
marketbottom.JPG (246.92 KiB) Viewed 4580 times
What does it do:
It helps you locate potential entry points so that you can plan to buy low in order to sell high.

Strategy:
Watch for green bars to confirm you are buying at a trending low.

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tabrisli
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Re: Technical analysis indicators and what they mean

Postby tabrisli » Fri Dec 08, 2017 12:31 pm

Indicator: Line tool
From: Tradingview.com
How to invoke: Invoke from Line tool on top left of screen. Click on two points to draw a straight line, adjust line position by dragging the both ends.
markettrend.JPG
Market Trend
markettrend.JPG (141.43 KiB) Viewed 4577 times
What does it do:
Join the bottoms of the chart diagram to visualise the support (bottom) level in order to know the general trend of the market.

Strategy:
The chart diagram should bounce along the trend line. If it breaks below the trend line it will form a new support level and the trend line will need to be shifted. This will mean that the growth has weakened.
Use this trend line to predict when a trend is going to reach a certain height.

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tabrisli
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Re: Technical analysis indicators and what they mean

Postby tabrisli » Fri Dec 08, 2017 12:44 pm

Indicator: Exponential Moving Averages (EMA)
From: Tradingview.com
How to invoke: From indicators
moving averages.JPG
moving averages
moving averages.JPG (151.91 KiB) Viewed 4576 times
What does it do:
Tells you the moving average across a period of time you set in the setting.

Strategy:
Invoke 2 EMA indicators. Click on the setting button on each EMA and change the periods.
Set one EMA's period to 13 and the other EMA's period to 34 or there abouts.
I like to keep my 13 period line red (signal) and my 34 period line blue.
When the 13 period line is above the 34 period line, it means the price of the coin is above average, you should not buy unless you know what you're doing.
Vice-Versa, if the 13 period line is below the 34 period line, it means the price of the coin is below average, and you may choose to buy at that time.
The wider the gap, the stronger the message.
Use EMA with other indicators to provide a clearer message.

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tabrisli
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Re: Technical analysis indicators and what they mean

Postby tabrisli » Fri Dec 08, 2017 1:04 pm

Indicator: Relative Strength Index
From: Tradingview.com
How to invoke: Invoke from Indicators
rsi.JPG
RSI
rsi.JPG (176.83 KiB) Viewed 4569 times
What does it do:
Tells you whether a coin is over bought (which means it will decline) or oversold (which means it should rise soon) and how much volatility you can expect

Strategy:
You can see a different coloured zone in the RSI chart between 70 and 30.
Anything above 70 indicates over bought(pumped) coin value and the market is bullish. This cannot sustain and is inclined to fall back below 70.
Anything below 30 indicates over sold(dumped) coin value and the market is bearish. This cannot sustain and is inclined to rise up above 30.
Between the 70 and 30 range, if the oscillation is small, that will mean that the market is low on strength and is consolidating for a breakout typically.
Between the 70 and 30 range, if the oscillation are average, then there is average value is usually moving sideways.
Bullish and bearish cycles can be identified from the RSI chart. You should buy during the bearish cycle and sell during the bulling cycle as a general rule.

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tabrisli
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Re: Technical analysis indicators and what they mean

Postby tabrisli » Fri Dec 08, 2017 1:18 pm

Indicator: RSI Divergence
From: Tradingview.com
How to invoke: Invoke from Indicators
rsi divergence.JPG
RSI Divergence
rsi divergence.JPG (200.24 KiB) Viewed 4566 times
What does it do:
Helps visualise the rise and fall cycles in the chart.

Strategy:
One of my favourite indicators to use in combination with RSI and EMA.
It helps you identify rising and falling cycles. When a coin is in its rising cycle, look out for the pattern of the cycle and use that to estimate when the next falling cycle will occur.
You can use this knowledge to time the entry point and get a feel of whether the coin is going to grow. For instance if a coin is undergoing its high cycle but it is behaving lackluster, it may mean that the coin will perform even more badly during its falling cycle.

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tabrisli
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Re: Technical analysis indicators and what they mean

Postby tabrisli » Fri Dec 08, 2017 1:48 pm

Indicator: Breakout Triangle
From: Tradingview.com
How to invoke: Invoke from brush tool on the left side of the chart circled in red
breakouttriangle.JPG
breakout triangle
breakouttriangle.JPG (176.39 KiB) Viewed 4562 times
What does it do:
Helps visualise a breakout where the trend changes

Strategy:
Fit a triangle around peaks and troughs of a set period.
The space needs to resemble a triangle at the very least, sometimes it is not possible.
The theory is that the chart will bounce within the triangle until it will either break up or down at the tip.
A rising triangle typically breaks up and starts a new rising trend towards the next resistance and support level.
A falling triangle typically breaks own and starts a new falling trend towards the next support level.

When an upward break occur, its generally a good time to buy as it may rise.
When a downward break occur, its indicating a continual decline, and you may want to apply a stop loss.

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wyukig
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Re: Technical analysis indicators and what they mean

Postby wyukig » Sat Dec 16, 2017 12:40 pm

Indicator: Market Volume
From: Tradingview.com
How to invoke: Invoke from indicators, search for name "Volume".
volume.JPG
volume.JPG (238.23 KiB) Viewed 4545 times
What does it do:
It tells you what is the market volume of sells and buys at a particular time.

Strategy:
Combining with other indicators, when you are deciding whether a push is coming, the market volume can help support your decision.
A strong push or a weak push will depend on the prevalent market indicator at that point in time.
The volume will always pick up significantly in the case of a strong spike, it will give you an idea on roughly how much to expect from the present push.

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tabrisli
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Re: Technical analysis indicators and what they mean

Postby tabrisli » Fri Jan 19, 2018 7:47 am

Indicator: Bollinger Band
From: Tradingview.com
How to invoke: Invoke from indicators, search for name "Bollinger Band".
bollingerband.JPG
bollingerband.JPG (191.29 KiB) Viewed 4518 times
What does it do:
Is it the amount of standard deviation above and below the current value. Default is 2 Standard Deviations.

Strategy:
There are two sides to the Bollinger Band. The upper band (aka High Bollinger Band) and the lower band (aka Low Bollinger Band). Same logic to RSI. When the graph comes into contact with either side of the Bollinger Band, market forces will tend to steer the bands back towards the middle. The further away from the sides the weaker are the tendencies to bounce.

You will notice from the diagram, each time the graph crosses either side of the bollinger band, a rebound is likely.
Note: In an overwhelming Bullish or Bearish market, the charts may encounter continual contact with the high or low Bollinger Band for extended duration.


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