In order to get the most out of your trading experience, reading and understanding charts is an essential skill. For seasoned traders, this is something that comes easily with the countless hours spent reading and deciphering patterns and charts. For someone who is new to space, learning technical analysis can be a daunting task and quite intimidating.
In order to have a better understanding of technical analysis, it is important to know the fundamental ideas behind Dow Theory which has developed over the last 100 years to be the foundation for technical analysis. The theory states that the main movements may last from a year to several years and they may be Bullish (rising in value) or Bearish (losing value). It also states that news can alter market conditions and that crypto prices quickly incorporate new information as soon as it becomes available. The movements in price are also not random and follow trends and these trends will continue until definitive proof confirms that they have ended. One last piece of information form the Dow Theory is that Stock market averages must confirm each other and that volume is just as important as the price.
If necessary, we will expand on these important topics in the coming weeks as the knowledge behind these theories and the ability to fully understand technical analysis can give the Matrixport.com customer a leg up with the vast options available on the site. Let us know your thoughts through our various social media handles!
2020 looks to be an exciting year and we are looking to keep you informed and ready to capitalize on what we are hoping is the year of crypto.