Introduction

In the previous entries, I have mentioned that in order to increase our chances of success in the cryptocurrency market, we must establish effective trading strategies by executing trades where we get more hits than misses.

This undoubtedly requires studying the theoretical and technical fundamentals of trading, as this allows us to predict the market trend and the price action of a given financial instrument.

The motivation behind the thorough study of the fundamentals of trading is, logically, to be able to have a better perspective when analyzing price action.

On the other hand, having technical tools that allow us to estimate the probable direction of the market we intend to operate, and thus increase our chances of making profits, or a greater number of successes in the purchase / sale operations.

It is known that in the world of trading, technical analysis tools allow us to estimate the probable direction of the market, since they are based on the study of statistical data generated by the price action.

Hence, to know the analytical projection of the behavior of the masses, i.e. the buying and selling behaviors that traders or investors have executed over a certain period, there are tools whose statistical data are used to detect areas of accumulation that lead to a change in market direction or trend, in the next post I will delve a little more about some of the most used technical analysis indicators.

OBSERVATION:

The cover image was designed by the author: @lupafilotaxia, incorporating image: Source: Trading-Education.