Crypto trading is a risky business, mainly because it is open 24 hours a day. Unlike stock trading, crypto trading is active 24/7, and anything can happen anytime. It is impossible to know whether the coin will go up or down, and most traders invest in the coins based on luck and trends. If you want to invest smartly in coins, you should choose KuCoin for your crypto trading. The platform provides its currency called KCS, and with that, you can easily trade in coins. Moreover, it provides complete predictions and analyses about Shib price, BTC price, and other coins.
You can use several indicators to predict the performance of coins shortly. In this article, we will look into the technical analysis of KuCoin. So let’s begin.
The prices of the coins are not completely random and unpredictable. Still, with the help of mathematical analysis and knowing the factors affecting the fluctuation in prices, we can know about the future price of coins. This process is called technical analysis, and there are several types. One important thing is that the trader should not consider all the analyses to predict single coins.
The trend indicator is among the simplest type of crypto technical analysis that is the extrapolation of crypto graphs. With trend indicator analysis, the traders can know about the trend of the coin, whether it is an upward, downward, or stable trend. There are several types of trend indicators. The most common is the moving average method in which the average line is drawn using current trends, and if the price is getting above that, it is an upper trend, and if the price is going low, it is a downward trend. The drawback of moving the average trend is that You can not use it for long predictions.
Moving Average Convergence/Divergence is used to predict the coin price for a long time. It uses a similar method but includes more than one baseline to define multiple trends and their duration.
One of the many things that affect the coin price is the sale and purchase of coins. If the coin is overbought or oversold, it can create a demand and supply gap resulting in price fluctuation. The most common indicator in this analysis is the Average True Range, which provides the volatility of coins over a designated time. Volatility is the ease of trading, which is important in predicting. Another thing to define the state of the market is the Stochastic Oscillator that provides the condition of the market, whether it is oversold or overbought. RSI works similarly but uses a different approach to predict the coin behavior.
According to most experts, the best technical analysis for a coin is Volume Indicators when planning for a long-term investment. The volume and the total price of the coin are what matter in this analysis. It includes the available coins in the market and analyzes their price with their average demand to predict the futures price.
Money Flow Index and On Balance Volume is the most common volume indicator based on price and volume.