Along with Community sentiment and CyBorg prediction, technical analysis is one of the most prominent metrics in cryptocurrency trading. Technical analysis is the study of statistical trends, collected from historical price and volume data, to identify opportunities for trade. Technical analysts observe patterns of price movements, trading signal and other analytical tools to evaluate the strength and weakness of an asset.
But how do traders check the market?
Traders study charts in order to understand the current market trend and find different patterns that may help them predict further price movements. Click on “learn” and find our technical analysis as well as Bitcoin price chart.
Don’t understand what you see?
Do not worry! We will help you to sort everything out.
The chart displays bars that are known as ‘candlesticks’. A candlestick's shape varies based on the relationship between the day's high, low, opening and closing prices. They give us an understanding of how did the price change over a certain period of time.
When checking the chart in the SwissBorg Community app, you should notice that there are 2 lines that go right above and below the candlesticks, those are Bollinger Bands.
Bollinger Bands display a graphical band (the envelope) with a simple moving average in the middle. The Simple Moving Average is the average of the closing price of the stock (Bitcoin in this case) over a specified period. Moving averages are very powerful instruments that traders use to analyze the market trends.
The width of the envelope expresses the volatility.
Volatility refers to the rate at which the price of an asset can increase or decrease. A higher volatility means that the asset can potentially fluctuate rapidly within a larger range of value.