It’s very difficult to learn a trade as a beginner. However, many experts in the field and online resources are available that can teach anyone to trade cryptocurrencies. The first thing to realize is that bitcoin markets or any cryptocurrency markets are very different than your average stock or FX trading arenas. Many people will tell you that traditional technical analysis (TA) will never be accurate when it comes to digital currency markets. However, there are those that use TA regularly to day trade, make a living, and predict the short-term price swings we all know and love.
The most basic thing a trader should get to know is the most common financial chart used in the cryptocurrency industry, the candlestick chart. The size of each candlestick represents a certain time interval and individuals who study TA look for patterns in the market. This is when you will hear about certain chart patterns like the ‘Head n Shoulders, the Cup n Handle, Triple Top & Triple Bottom,” and many more funky phrases. However, these pattern help traders predict cryptocurrency price movements in the short and long term. They say after memorizing enough patterns individuals can see them subconsciously while day trading.
Lastly even an individual who is very knowledgeable about technical analysis, and they also follow the street very closely, might make some very wrong predictions. Cryptocurrencies like bitcoin can often trick traders, and all that street knowledge and TA goes out the window. So, make sure you know for certain that’s a legitimate head n shoulder or bull flag.