Fundamentals of Technical Analysis
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| Fundamentals of Technical Analysis of crypto trade |
Chapter 4 -
What is a flexible position?
Long-term (or long-term) means buying something in the hope that it will increase its value. Long positions are usually used to refer to derivatives or forex products, but they are especially applicable to all types of assets or types of markets. With the prospect of buying a home in the local market that would increase its value, there is also a long way to go.
Long-term travel in financial assets is a popular way to invest, especially for newcomers. Long-term trading strategies, such as buy and hold, are consistent with the assumption that fewer assets will rise in value. In this way, it is more convenient to buy and rent real estate.
However, staying longer does not mean that business prices are expected to rise. Take hard tags, for example. BTCDOWN is the exact opposite of the Bitcoin price. If the price of bitcoin goes up, the value of BTCDOWN will go down. If the bitcoin price drops, the value of BTCDOWN increases. In this way, a long-term entry into BTCDOWN corresponds to a decrease in the value of Bitcoin.
what is shorting.?
Short term (or short term) means selling an asset to repurchase it at a later price. The deficit is closely related to cross-border trade, as may be due to borrowed goods. However, it is widely used in by-product markets and is only available to them. So how does weight loss work?
When it comes to attracting local markets, it's pretty easy. Let's say you already have Bitcoin and you are waiting for the price to drop. You are selling your BTC for US dollars because you intend to buy it back at a lower price. In this case, you are entering Bitcoin temporarily, because you are trading for repurchase. Simple enough. But what about borrowing money? Let's see how it works.
You are borrowing something that you think will go down, like stocks or cryptocurrency. He will sell it right away. If the business is going well and the value of the property decreases, you will return the money to the property. Pay off the loan (and interest) and take advantage of the difference between the original and repurchase price.
So what do Bitcoin loans look like? Consider an example. We set up the necessary collateral to get 1 BTC ready and sell it for $10,000 instantly. We now have $10,000. Let's bring the price down to $8000. We buy 1 BTC and pay our balance of 1 BTC with interest. Since we originally sold Bitcoin for $10,000 and now repurchased it for $8,000, our profit is $2,000 (less tuition and fees).
What is an order book?
The order book is now a collection of open asset orders, arranged by price. If you submit an incomplete application immediately, it will be replaced by your application. It will remain there until it is filled with another order or is canceled.
The demand for books varies on each platform, but they usually have the same features. You can see the number of orders at a certain price level.
In crypto exchanges and e-commerce, the order in the order book corresponds to an integration engine. This system is something that guarantees the transaction - you can think of it as an alternative. This process, along with planning, is central to the idea of electronic exchange.
What is the depth of the order book?
Order book depth (or market depth) now refers to checks for open orders in the order book. He usually places a buy order on one side and a sell order on the other and shows the combination on the chart.
Specifically, the depth of the order book can refer to the amount of borrowing that can be claimed under the order book. The "deeper" the market is, the more money is traded in the order book. This way, a larger lending market can accept larger orders without affecting prices. However, if the market is unregulated, the prices of buy orders may be affected significantly.
What is the market demand?
A market order is an order to buy or sell at the current market price. A quick way to enter or go to the market.
When placing an order in the market, you usually say, "I wish I could get this at a better price right away."
Your market order will continue to be processed from the order book until the order is completed. This is because big business (or Wales) is possible
What's up in business?
One thing you should know about market orders - is slip. When we say that market orders are made at the best available price, it means that the order continues from the order book until the order is completed.
But what if there isn't enough money around the asking price to place a large market order? There can be a big difference between the price at which you expect your order to be delivered and the price at which it is being processed. This difference is called destruction.
Let's say you want to open a position to buy 10 bitcoins as an alternative currency. However, this digital currency has little market value and is traded in a market with less liquidity. If you use the market order, it will continue to complete the order in the order book until the 10 BTC order is fully processed. The liquid market allows you to place your 10 bitcoin orders with no significant impact on the price. In this case, however, the lack of liquidity means that the order book may not have enough sell orders for the current price range.
So when your 10 BTC order is fully executed, you can see that the average price you paid is higher than expected. Lack of sell orders, on the other hand, increases your market order in the order book, which is related to orders that are more expensive than the original price.
Beware of slipping when trading Altcoin as some trading partners may not have enough money to place your market orders.
What is the exact order?
Limited order is the practice of buying or selling something at a certain price or better. This value is called a fixed value. Limited orders will be placed at or below the quoted price, while sell orders will be placed at or above the quoted price.
When you set a pattern, you're basically saying, "I'm making that pattern for that value, or it's better, not worse."
Using a restricted order gives you more control over your entry or exit in a particular market. In fact, it guarantees that your order will not be cheaper than what you want. However, this also has drawbacks. The market may not respond to your price and leave your order blank. This can often mean losing potential business opportunities.
Knowing when to use a particular order or market order can be different for every trader. Some traders can use one or the other while other traders use both - depending on the circumstances. The most important thing is to know how it works so that you can decide for yourself.
What is a Loss Stop Order?
Now that we know the market and the order, let's talk about stop-loss orders. Loss stop orders are restricted market order or market order that is triggered only when they reach a certain price. This value is called the stop value.
The main purpose of the loss stop order is to prevent damage. Every trade must have a blank dot, which is the price level that you need to determine in advance. This is the level where you say your original idea is wrong, meaning you have to exit the market to avoid further losses. Therefore, the void is where you always order to stop your losses.
How do orders prevent process loss? As mentioned above, stopping a loss can be a limit or a market order. Therefore, these changes can also be referred to as Stop-End and Stop-Market orders. The important thing to understand is that the stop loss will not be processed until it has reached a certain value (stop value). When the stop price is reached, it is executed based on a market order or a specified order. Usually, you set a stop price as a market stimulus or a correction order.
However, there is one thing to keep in mind. Keep in mind that installation orders are only completed at a fixed price or better or worse. If you use the Stop-Limit order as a stop-loss and the market falls sharply, it may immediately deviate from the price you set and your order will be empty. On the other hand, the stop price triggers your stop-limit order, but the sharp drop in price leaves the limited order empty. Therefore, stop market orders are considered safer than stop-limit orders. They guarantee that, even in difficult market conditions, you will only exit the market if your equipment is reasonable.
Restricted orders are generally used as constructive orders, but not in all cases. Suppose you place a limited purchase order with a limited price that is significantly higher than the current market price. Since you say your order is at or above the limit price, your order will be executed at the market price (because it is lower than the limit price).
You become the recipient when you place an order that will be processed immediately. Your order is not added to the order book but is directly related to the order in the order book. You are the buyer because you take cash from the order office. Market orders are always receiver orders because you place the order at the best price in the market.
Some exchanges use multi-tier fee models to encourage traders to offer liquidity. After all, it is in their best interest to attract large investors to their exchanges - liquidity attracts more liquidity. In such systems, builders pay less than consumers because they are the ones who increase liquidity in the stock market. In some cases, they can even compensate the builder.
What is the spread of supply and demand?
The supply and demand spread is the difference between the highest buy (supply) order and the lowest sell (buy) order for a given market. In fact, the difference between the highest price a seller can sell and the lowest price a buyer is willing to buy.
The suggested spread is a way of measuring the liquidity of the market. The smaller the spread of supply and demand, the more liquid the market becomes. The spread of supply and demand can also be considered as a measure of the supply of and demand for a specific asset. In this sense, supply is represented by the demand side, while demand is represented by the supply side.
When you place your order in the market it will be filled with the lowest available asking price. Conversely, when you place an order on the market, it will be filled with the most available offers.
What is a candlestick chart?
A candlestick chart is a graphical representation of an asset's value over time. It consists of candles, each of which represents the same time. For example, the 1-hour chart shows a candle, each with an hour. The 1-day chart shows a candle, each with the time of day and more.
The candle has four data points: open, high, low, and closed (also known as OHLC value). Open and Closed are the first and last recorded prices in a given period, while Low and High are the lowest and highest recorded prices respectively.
Candlestick charts are one of the most important tools for analyzing financial data. Candles are from 17th-century Japan but were adapted in the early 20th century by business pioneers such as Charles Dow.
Candlestick chart analysis is one of the most common ways of looking at the Bitcoin market along with technical analysis. Want to learn to read a candlestick chart? See the Candle Cards beginner's guide.
What is a candlestick chart pattern?
The technical analysis is based mainly on the assumption that past price changes may reflect future price performance. So how can candles be useful in this regard? The idea is to identify the patterns in the candlestick chart and build business ideas from them.
Candlestick charts help traders analyze the market structure and determine if we are in an uptrend or a downtrend. They can also be used to identify areas of interest on a chart, such as support or resistance levels or potential turning points. These are places on the map where their business activity has generally increased.
Candlestick patterns are also a great way to manage your risk as they can provide well-defined and accurate trading setups. Hence, candlestick patterns can clearly define your price targets and intervals. It allows traders to have very accurate and controlled trading setups. Hence, candlestick patterns are widely used by forex and digital currency traders.
Some of the most common geranium designs include flags, triangles, wedges, hammers, stars, and dodges. If you'd like to learn how to read them, check out our beginner's guide to the 12 popular candlestick patterns and classic chart patterns used in technical analysis.
What's the trend line?
Some traders may simply use trendlines to better understand the structure of the market. Others can use it to create realistic business ideas based on the interaction of trend lines with prices.
Trend lines can be applied to charts showing almost any interval. However, like other market analysis tools, trends are more reliable at shorter intervals than lines.
Another aspect to consider is trendline strength. A common definition of a trendline is that it should hit values at least two or three times to be accurate. In general, the higher the price touching the trendline (test) value, the more reliable it is.
If you want to read more about how to draw trendlines, try to understand trendlines.
What are support and struggle?
Support and sustainability are some of the basic concepts in business and technical analysis.
Support is the level at which prices "decline". On the other hand, the level of support is crucial for local demand as buyers trade and prices rise.
Sustainability is the level at which value is "at the ceiling". Local supply levels are important because vendors work and prices fall.
Now you know that support and resistance increase supply and demand respectively. However, many other factors can influence your thinking about support and perseverance.
Technical indicators such as trendlines, moving averages, Bollinger Bands, Ichimoku Clouds Cracks, and Fibonacci can also indicate possible support levels. In fact, aspects of human psychology are also used. Thus, traders and investors can incorporate various partnerships and associations into their trading strategies.
Do you want to know how to map support and resistance? Read on to explain the principles of support and perseverance.
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