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How To Use Technical Valuation In Cryptocurrency
How to use the cryptocurrency technical assessment
The cryptocurrency world has noticed enormous growth and reception in recent years, and prices in wild moods react incredibly. However, not only is the speculative nature of this market a precious tool that can help investors make reasonable decisions: technical assessment.
Technical evaluation is the approach to the assessment of the value of cryptocurrencies according to their main characteristics and technical indicators, and not only on the basis of market prices. In this article, we will deepen how to use a technical assessment of cryptocurrency, to study its advantages, restrictions and best practices.
What is technical assessment?
The technical assessment includes the analysis of currency prices, the volume of exchanges and other technical indicators to estimate its value. This approach focuses on the main factors that encourage the market, not just market trends or speculation. Using technical indicators, investors can determine the models and trends that can be immediately obvious from market data.
Basic technical indicators
To start with the technical assessment of cryptocurrency, you will have to familiarize yourself with certain key indicators that are most commonly used:
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- Decrease in medium convergence differences (MacD) : impulsive oscillator, which measures a connection between two mobile averages, helps to determine trends and reverse.
- Stochastic oscillator : Impulses indicator of the percentage of upper or lower percentage to slide over time.
How to use the cryptocurrency technical assessment
You will need: you will need:
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- Analyze the indicators : Use selected indicators to create technical analysis graphics and define models.
- Evaluate trends and changes : Look for acceleration, deceleration or replacement trends, using identified indicators.
The advantages of technical evaluation
The technical assessment offers several advantages:
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- Cauvaise Transparency : Technical assessment allows a clear understanding of the main factors that determine the value of the currency.
Technical evaluation restrictions
Although the technical assessment has its advantages, some restrictions must also be taken into account:
- The context is the most important : The technical assessment must be used in conjunction with the moods of the market and the analysis, because the prices can be affected by external factors which can be directly linked to the reasons for base.
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The best practice
To make the most of the technical assessment of cryptocurrency:
- Use a combination of indicators : Connect several technical indicators to define models and trends.
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