I watched many Analysis Videos and Youtube but never quite understand what those lines and graphs actually mean. So i sat down and tried to understand some of them and bring them to this Community.
First of all i am by no means any Pro in the Trading game or in the Analysis in general. I just got interested in what some of the Graphs i see in some Videos mean and tried to understand them.
I am using tradingview.com as my go to Website to see some stats on BTC etc. There are probably plenty more but i think its pretty beginner friendly and has some good use while beeing free.
After you visit the Site, you can search at the top of the Site your favorite Coin. I am only going to use BTC-USD in this Example. If you just search BTCUSD it’s going to show various Exchanges you can select. I personally use INDEX:BTCUSD because it shows the Alltime History of Bitcoin. After you selected your Coin, you have to Click on Full-featured Chart to get to the Chart Window.
By default the Chart is going to look something like this (Example of a BTC Chart). I have some settings already for the Background which i can share if someone is even interested in this. The Candlestick Charts are showing you the Trading Activity of your selected Timeframe. In this Example i selected 1 Week, so each Candlestick represents one week of Trading. Logically, a green Candle means the Price goes up, a red Candle the Price goes down.
There are probably unlimited Indicators for many charts so at first I just state some of the most used ones. By Selecting Indicators at the top of the screen you can search for Indicators. Just use the Public Libary and search for the one you like.
Thats probably one of the Indicators I saw the most while researching them. The Moving Average draws the combined Price of your selection. General, the 200 Day Moving Average is considered a useful Indicator to see which Price Bitcoin will probably not undercut. In History there were three Times in which BTC tested the 200 Day Moving Average but it always bounced back after touching it. I can try to go deeper into other Moving Averages, if there is demand for it.
MACD (Moving Average Convergence Divergence)
The MACD shows the Volatility of the Asset. Quickly explained, if the two lines are close to each other, there is high Volatility (big Candles) and if they are far apart there is less Volatility (small Candles). If those two lines cross each other, there is a new Price trend which is shown by the bars under it. So you could say that if the lines are crossing and the bar underneath it is red, you should sell and wait till the lines cross again.
RSI Relative Strength Index
The RSI tells you if it is Overvalued or Undervalued at the moment. If the Graph is under 30, it means the Price is undervalued and you should buy. If the Graph is over 70 you should sell because it is overvalued. Everything in between means the Price is right (and probably you should buy anyway ;)).
Well this was my quick summary of my newely learned “Trading Skills”. Keep in mind this is not Financial Advise and evers Indicator should be taken with a grain of salt. So DYOR.
If you like this i can maybe continue with another part in which i can go deeper into the MA’s and maybe other Indicators. If you want to watch some Videos about it, i suggest you watch Coin Bureau or Benjamin Cowen. Also go and read the Post of u/rocketrocketleague1**.** He also did a Mini Tutorial about this. Some feedback would be nice and maybe i can learn something from you too.
Sorry English is not my Native Language.