This is @ahtishamghumman5, here I am going to share my homework post on the topic " Technical Indicators" given by respected Professor @reminiscence01.
In your own words, explain Technical indicators and why it is a good technical analysis tool.
Technical indicators help the traders in their trade. By using technical indicators traders can predict the market price and also the volume of any crypto any cryptocurrency and by seeing history it is easier to predict something.
These indicators help the traders in trading by understanding these indicators traders can get huge profits and also can save us from huge losses. Technical indicators tell us the correct time to buy or sell any cryptocurrency. These indicators can give us the history of any asset.
Are technical indicators good for cryptocurrency analysis? Explain your answer
Technical analysis tools are very useful. These tools help us to predict the market price and can help us to get good profit. These tools tell us now the bullish trend can start and now the bearish trend can start you just need to apply these tools carefully. If you know how to use these tools you can make a good profit in cryptocurrencies.
Technical indicators give us the price history of any cryptocurrency and by understanding this we can predict what is going on in the market and we can predict the future price of that currency. Technical indicators help the traders during their trade and tell them the right time to buy or sell their assets.
Illustrate how to add indicators on the chart and also how to configure them. (Screenshot needed)
- Go to trading view and click on the chart.
- A chart will open, now click on indicators
- After clicking a window will pop up now search here Moving Average
- Now click two times on Moving Average
- Now for configuring I set the length of Short Term MA to 50 and change the style
- I set the Long Term MA length to 200 and change the color to red.
- Now you can see it’s applied on Chart.
Explain the different categories of Technical indicators and give an example of each category. Also, show the indicators used as an example on your chart. (Screenshot needed).
By name, you can see it related to trending and this indicator helps the traders to show the market trend which trend is in the market. I am going to use the Moving Average indicator it is much related to the trend indicator.
Moving average indicator is a very helpful indicator. It helps traders in their trade. It has some different forms like linear moving average, exponential moving average, etc. it shows lines in a chart which is more helpful to understand the chart.
The volatility-based indicator shows us the volatility of any currency in the market. It helps the trader to buy at a low price and sell at a high price. An example of Volatility based indicator is (ATR) Average True Range Indicator.
Volume indicators tell us the volume of any cryptocurrency. Chaikin Money Flow indicator is the best indicator and it can measure the distribution of accumulation.
Briefly explain the reason why indicators are not advisable to be used as a standalone tool for technical analysis.
It is not advisable to use indicators alone. Many of the indicators show you the wrong signal. Don’t rely on only one indicator. Wrong Indicators cannot give you accurate information about the market. If you combine the two wrong indicators it will take you to a huge loss.
Furthermore, if you combine the two good working indicators it can give you good information about the market and it can help you to get good profit
Explain how an investor can increase the success rate of a technical indicator signal.
If a trader wants to get good profit he needs to learn how to use indicators because good indicators can tell you good information about the market and by using indicators you can invest. Try to use more than two indicators because the alone indicator is not advisable you need to choose two good indicators.
One most important thing is you need to know which two indicators can give you the correct signal. If you combine two wrong indicators it can give you the wrong signal and you can lose your money. By using two good indicators you can increase your success rate
Thank you so much professor for your lecture in this lesson I learn a lot. Indicators can take you to get profit and can take you to chase huge losses if you know which indicators can work properly you can get profit but if you use wrong indicators those indicators take you to loss.
Hello @ahtishamghumman5, I’m glad you participated in the 2nd week Season 4 of the Beginner’s class at the Steemit Crypto Academy. Your grades in this task are as follows:
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