Source

Hi everyone in cryptocurrency ecosystem. Cryptocurrency have been going great in the digital world.

But still many looses and few earn profit from cryptocurrency. Even me to I have really loose in crypto currency, but through proper analysis and risk management in the crypto ecosystem, I have been able to do well.

There are three types of analysis in crypto ecosystem and this are to make someone earn profit in cryptocurrency.

• Sentimental Analysis
  This analysis is to know about the way trade, are been done in the crypto ecosystem by different users. This analysis is not too essential, because it involves, crypto users giving you signals to trade on it.

But what matters is your ability to analyze trade on your own without looking for supports or signals from different users in crypto ecosystem.

The main objective of this analysis is to check on signals or analysis done by different users in crypto ecosystem and trade with the signals

• Fundamental Analysis
  This are organization or crypto company's that tells people about how a trade will run in a certain period. This is mainly for forex and stock traders. But it is also seen in cryptocurrency, whereby group of people will analyze a trade and then share it to the public for users in crypto ecosystem to see it.

This analysis is helpful when a users have analyze his/her own trade and then joining it together with the fundamental analysis.

This are organization that gives details about how a trade will occur in a duration of time.

Source

• Technical Analysis
  This is the most important aspect of analysis, where you can analyze on your own ability without needing adequate signals to trade with.

We would discussed mainly on Technical Analysis and see everything that comprises it.

Q1. How would you define Technical Analysis in the Crypto ecosystem? Mention its Importance

Technical Analysis is the basic work, where traders studied price movement in crypto ecosystem.

This mean that a trader can look at a price movement and determine the potential of how the trade will go.

Any body who uses technical analysis is a technical analyst or technical traders.

Technical Analysis is very important, because it base on the reflection of market price in crypto ecosystem.

Also technical analyst believe that all is done in a chart

This look at the price action, rhythm, flow and trend of a market price in crypto ecosystem. This means that information are been reflected to wether the market will be bullish or bearish.

Bullish is a trend where we expect price rising. It is also know as Long, Rise, Buy trend.
Bearish is known as Short, Fall, Sell trend and the price is expected to go down.

Technical Analysis are based on major support and resistance. That will make a technical analyst to be watchful of the trade with the information that is gotten from the analysis.

There is an adage that says ""History tends to repeat itself"".

This mean that technical analyst tends to repeat the same pattern used in the past to analyze a trade, then believing it will work well, it is now placed on a trade.

Technical Analysis does now always mean PREDICTION but it means POSSIBILITIES

Technical Analysis is the study of price action through charts and will determine the probability of the information, when the trade is been placed in feature.

Note: Technical Analysis are been placed in Forex and Stock Market, Cryptocurrency and Gold Ecosystem and any other place where digital and foreign currency are been spot traded.

Components Of Technical Analysis

1. Price Action.
2. Support and resistance.
3. Candlestick patterns.
4. Technical analysis Patterns.

Price Action
This is the act of pumping money through analysing the algorithm of how price are been moved. It can be define as price movement in the crypto ecosystem.

Support and Resistance
This are candles stick that makes up a candlestick patterns in a chart.

Candlestick Patterns
This comprises Support and Resistance in a chart and it is aids in the analysis of trade in crypto ecosystem.

Technical analysis patterns involve the main three basics of technical analysis.

Q2. Do you have practical knowledge of how to conduct technical analysis? Highlight some of the components of Technical analysis.

Yes I have traded in forex, stock and crypto ecosystem and it is through Technical analysis, which help me to make profit in my days to day trade.

I will show you free way of analysing a trade in cryptocurrency ecosystem or any where you trade both forex and stock market.

Let's use moving average indicator to analyze a trade but it will be ok forex. Note that all analysis are been used to trade any where in digital and foreign spot ecosystem.

Yes set three moving average in your chart and the first red should be a Lower number then multiply it by two that will make the second indicator blue and add together the number of the first and second indicator, which will then give you third indicator green.

In my diagram above the first indicator which is in red color is crossing the second indicator which is blue. It also crossed the third indicator which is green. This shows that the market will surely be bearish (short, sell and down).

Component Of Technical Analysis

1. Price Action Strategy
2. Indicator Strategy
3. Candlestick Patterns Strategy

Price Action Strategy
This is technical analysis strategy, whereby market and trade are been analyze through price movement in the market.

Yes, this can be found in a chart and as regarded as simple strategy for analysing a trade.

This is simple because is required your knowledge and wisdom to check the situation and the state that price movement are correct.

The are also guidelines that you need your strategic thinking and understanding to check the state of price movement.

IMPORTANCE

1. You don’t need derivative indicators, expert advisors and other paid tools.

2. You can easily grasp the basics and analyze the state of any currency pair without lengthy preparation.

3. You don’t need to trust the indicators and other unreliable sources of information.

4. You trade almost always with delayed orders, which means there’s no risk of slippage.

5. Finally, the knowledge and skills gained with Price Action are useful on stock exchanges and other security markets.

Examples Of Price Action Strategy

1. Head, Shoulder pattern
2. Counter trend trading.
3. Support and Resistance.
4. Flag Patterns
5. Trend lines

Indicator Strategy
This is the use of analysing tools to check the various date done in crypto ecosystem, to know how it will change in the feature and the performance of the trade.

This is done though currency price, volume and market performance and the indicator will tend to predict how a trade will be in the feature in a crypto ecosystem.

Indicators help an analyst to trade with a better information on how to place a trade in the feature, which tends to yield profit in return.

It also help a technical trader to take decision on how a trade will like change in a period of time.

This tools can make an analyst to trade in just 5 minutes and earn large profits.

Indicator Strategy are tools which helps an analyst to predict a trade and have a possibility of yielding good return.

Examples Of Indicators

1. Fibonacci
2. EMA Exponential Moving Average
3. SMA Simple Moving Average
4. Elliott Wave

Candlestick Patterns Strategy
In just simple term, it means the use of lines, bars, triangle and shapes to analyze a trade in crypto ecosystem.

This is basely seen in a chart and tends to follow price action stability.

Candles stick are made of Market Volume, which includes the buyers and the sellers. Whenever the buyers have more volume of trading, the candles stick tends to go up.

The same with when the sellers have more volume of trading than the buyers, the candles stick tend to pull down.

Bars, lines, shapes are the component of candles stick pattern

What do you understand by technical indicators? Do you consider them effective for trading cryptocurrency? Which one is your favorite and how does it work? (Screenshots required where necessary)

In my previous write up I have explained what are technical indicators, but let me summarize what are technical indicators.

Technical indicators are tools which are used in chart to analyze, wether a trade is to go up trend or down trend.

Indicator required your knowledge of understanding how the market will be done.

This means that indicator are sometimes incorrect and would make you to analyze wrongly.

But it is best that you try to use four different indicator in your analysing of any trade in crypto ecosystem.

**Do you consider them effective for trading cryptocurrency? **

Yes I really consider them effective in a trade, because it have an impact of making up your analysis to be correct.

If not of technical indicators I would have blow my forex account and crypto currency account (futures trading).

But still the way you use the indicator can make you fail or loose in a trade. This can happen if you use one indicator to analyze your trade. So it best to use four indicator or as many as, so that you can have a correct analysis.

Which one is your favorite and how does it work?
Almost two indicators are every body favorite in crypto ecosystem, the are the moving average. The same to me, I love using EMA Exponential Moving Average and SMA Simple Moving Average.

EMA and SMA are like the same but the difference is the way you place it on a trade. So let me use the term SMA to analyze a trade.

The above diagram show how SMA works on a chart.

The first arrow shows that the red indicator, which is the short one tends to cross the long indicator which it the blue and green, but sellers was too much in the market and that made the short indicator which is red not to cross the two indicators.

This first diagram shows that a down trend is going to happen

The second arrows shows that the red indicator has crossed up the two indicators blue and green

This shows there will be uptrend

The third arrows shows that the red indicator crossed down the two indicators blue and green

This shows that there will be a down trend

Then the forth arrow circled shows that immediately the red indicator crossed the second indicator blue, it then crossed down the blue indicator again.

This means that seller are many in the market, then there will be a down trend.

I used three moving average indicator, red, blue and green.

Highlight the advantages and disadvantages of technical analysis. What's your advice to anyone about it?

ADVANTAGES

1. It helps analyst to predict wether the price of market will go up or down. This makes it easy for a trade to run smoothly in crypto ecosystem.

2. It is used to analyze all kind of crypto, forex, stock market. The theory does not changes in a trade

3. It is very well more simple to understand in terms of learning and understanding the basics of how to technically analyze a trade.

4. The are different types of technical analysis, but all tends to bring the same result and output.

DISADVANTAGES

1. Technical analysis are not 100% correct and can make traders to loose there fund.

2. Stock Market can change the way trade move in a period of time. Stock are like whale, organization that can cause inflation and deflation of a price action.

3. The future is not best known until the price hits the target of what is been analyze.

My Advice To Technical Analyst
Technical is the best analysis for trading but be sure that you use proper risk management.

Yes many have blow or loose there funds because of a single loose in analyzing and trading.

Technical analysis is not even 90% accurate, because stock can cause an analysis to go wrong.

My Advice is to use proper risk management by inputting SL and TP when trading, and also use more than one indicator to analyze price actions. Also check on stock news that are been declare on about a particular trade in a crypto ecosystem.

Conclusion

Be aware that everything that involves trading in crypto ecosystem are risky and profitable, only if you can manage your account well.

My regards to everyone on steemit and I will like to invite @samuel20, @focusnow and @ngoenyi to participate in this wonderful contest.

I also remember my friend @richy20 to continue posting on contest activity and try to involve crypto courses

Use proper risk management, use all technical strategies and then your trade will go successfully.

Note: All screenshot was taken from my Tecno Spark 8p except the first Image that I sourced the origin