WHY TECHNICAL KNOWLEDGE IS IMPORTANT IN CRYPTO TRADING BY @DAVCHI// SHARED ON TWITTER //MY FIRST HOMEWORK PARTICIPATION// POWERED UP TO 100%

As Crypto trading has dominated the electronic market in this contemporary time, there is the need for any crypto trader to understand the technical requirements in engaging in this mechanized trading system persay.

There has been a great loss on the side of many traders that bugges into the system, this is as a result of insufficient or lack of fundamental knowledge about the said trade pattern while many others has excelled because of the knowledge they gained from professionals while they engage in the crypto trading system.

Not withstanding I will be taking us through my understanding of this week lecture on: WHY TECHNICAL KNOWLEDGE IS IMPORTANT IN CRYPTO TRADING. Thus:

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THE ROLE OF A TECHNICAL CHART:

First technical charts are the preliminary thing a trader should have fur knowledge of, which comes in different forms. From my speculation most trade starters majors on two main technical charts for their trades which Is not all that expedient amd sufficiently enough in placing trades
Normally they use just (1) the stochastic moving averages and (2) the Chinese candle stick. But there are more than this to placing a favourable trade.

Hence there are different roles that technical charts plays in ordering or placing trades in intermittent favourable condition. But precisely from the context of this question, the role of a technical chart is that it's a great indicator to a trader in placing a buy or sell trade favourably in any trading platform with less or no losses.

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WHY TECHNICAL KNOWLEDGE IS IMPORTANT:

Really from my perspective, technical knowledge is the basis for less losses.

The aim of every trader is to make profit or gain ofut of his trade, but in the phase of trading cryptos it's not all that consistently favourable because of the volatile nature of crypto currencies (unstable) which could lead to a loss of an intended to win trade.
On the other hand, the knowledge of technical charts drastically reduces the rate of loss of trades either in the forex or any market at all.

It's also important in that it helps you to minimize losses so as to maximize your profit.

It also helps a trader to place trades in confidence despite the trend of the charts evoke.

It gives you confidence in manipulating and strategically using precise familiar charts over repeated trade intervals as you wishes.

THE TREND THAT IS GOOD TO BUY A COIN:

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From my observation so far from many trading platform, I have come to realize that the upwards movement of the trend indicates an increase in the value of the cryoto in question you are trading with, and a downward trend indicates a decrease in the value of also the cryoto you are trading with.

Hence it is good to buy a coin when it's price has not gone up, in other words an upward trend is a better trend to buy a coin.
Reason being that at the upward trend you can't tell to which point it will get to before striking a balance that is stabilizing and perhaps coming down in probably as expected by any trader so it's better to buy while the trend is just striking up.

WHAT I UNDERSTOOD FROM THIS HUOBI EXCHANGE TRADING CHART

Credited to Huobi trading exchange platform

I got this screen shot from the huobi exchange platform although I rescreenshotted it from one of my post during the Huobi exchange spotlight.

But a further analysis shows a set combined techniques I applied to exchange my STEEM to USDT from it's out look I combined the MA's with the Bollinger bands to trade.

Although special I used the candle stick and not the stochastics as my trend indicator.

The green candle represents a put or up trade while the red candle represents a call or down trade
Basically you can see more of the green candles when the trend of your trade is going high while on the other hand the red candles are spotted when the trend is going down.

Moreso you can view that the steem crypto appreciated to the point of 0.1751% which is a clear indication of the rise in the value of steem and thereafter there was a strong resistant of the USDT against further suppression of the STEEM crypto and finally it started going down.
Hence at this point it's best to order a down or call trade which will inturn bring profit although depending on the time limitof your trade.

Explaining further you can see at the point I marked with a rectangular box that the steem value has so depreciated to the point of resistance at 0.1682% value where it now started resisting the USDT as to appreciate, at this point, less of the red candles are spotted because the market is now in favour of the STEEM crypto and as it stands this is the point that is best to make a put/up or buy trade and hence you will definitely make profit from your stake.

Finally I wish to appreciate everyone of us for going through my post and more especially the @steemitblog for coming up with this great eye opener to the community at large am grateful participating.

Thanks @stream4u for putting me through this great experience.

Cc: @steemcurator01
Cc: @steemcurator02
Cc: @stream4u