How to make a technical evaluation of investments in cryptocurrency
The world of cryptocurrencies has achieved great popularity in recent years, and many investors have been on the market to make profit. However, as in the case of any investment, it is important to carry out thorough research and analysis before you immerse them in a cryptomen world. The key aspect in the evaluation of investment in cryptocurrency is to carry out a technical evaluation in which various technical indicators and metrics are analyzed to determine the potential value of the financial value.
What is the technical rating?
The technical evaluation applies to a systematic approach to the evaluation of the value of the cryptocurrency by analyzing its historical prices, trends and other technical indicators. This method helps investors identify potential purchases or sales opportunities and make justified decisions about their investments. The technical evaluation differs from the basic analysis, which is based on the internal value of the property based on its basic economy.
Why use technical rating?
There are several reasons why the use of a technical evaluation for investment in cryptocurrency is necessary:
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- Reduced risk
: by analyzing various technical indicators, investors can identify potential risks and avoid conformity in their positions.
- Improved decision -urobania : Technical evaluation helps investors make the right decisions about their investments by taking into account several factors.
Frequent technical indicators to evaluate cryptomena
Here are several frequent technical indicators used to perform a technical evaluation:
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- Sliding diameter values : Statistical tool that receives the price of security for a certain period of time with shorter and long -term sliding diameter values.
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- MACD (divergence of average convergence) : an indicator that measures the relationship between two pulse indicators.
- Stochastic oscillator : Technical indicator that calculates the relative strength of security.
How to conduct technical analysis of investment in cryptocurrency through
To perform a technical rating, follow the following steps:
- Select a cryptocurrency : Select one or more cryptocurrency to evaluate.
- Collect historical data : Get historical price data for selected cryptomena with API, trading platforms or other resources.
- Analyze the diagram patterns : Identify diagram patterns such as trends, head and arms formations, and other technical indicators that may indicate potential purchase or sale.
- Calculate technical metrics
: Use formulas to calculate different technical metrics such as RSI, MACD, stochastic oscillator, etc.
- Assess Risk Revenue : Analyze the potential ratio of risk remuneration for any investment option.
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Example of application cases:
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- ** Price movements: Analyze the diagram patterns and technical indicators to predict price movements for a certain cryptocurrency.
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