Update and rename defi_and_trading/day-trading/technical-analysis.md to defi_and_trading/day-trading/technical_analysis/README.md

This commit is contained in:
mia von steinkirch, phd 2022-12-23 16:30:03 -08:00 committed by GitHub
parent 20879f353e
commit 203df00f48
No known key found for this signature in database
GPG key ID: 4AEE18F83AFDEB23

View file

@ -1,8 +1,6 @@
# Technical analysis ## technical analysis
<br> ### tl; dr
## What's technical analysis
* uses trading data to analyse and predict price patterns * uses trading data to analyse and predict price patterns
* gives us data points to compare and contrast * gives us data points to compare and contrast
@ -15,7 +13,7 @@
--- ---
## Candlestick charts ### candlestick charts
* data rich trading analysis * data rich trading analysis
* time and price details * time and price details
@ -34,7 +32,7 @@
<br> <br>
### Hammer pattern ##### hammer pattern
* bullish pattern * bullish pattern
* sellers drove price lower during the day * sellers drove price lower during the day
@ -51,7 +49,7 @@
<br> <br>
### Shooting star pattern ##### shooting star pattern
* bearish pattern * bearish pattern
* buyers drove price high * buyers drove price high
@ -65,7 +63,7 @@
</p> </p>
<br> <br>
### Bullish engulfing pattern ##### bullish engulfing pattern
* bullish pattern * bullish pattern
* bullish candlestick "engulfed" the bearish candlestick * bullish candlestick "engulfed" the bearish candlestick
@ -78,7 +76,7 @@
</p> </p>
<br> <br>
### Bearish engulfing pattern ##### bearish engulfing pattern
* bearish pattern * bearish pattern
* bearish candlestick engulfed the bullish candlestick * bearish candlestick engulfed the bullish candlestick
@ -89,11 +87,12 @@
<p align="center"> <p align="center">
<img src="https://user-images.githubusercontent.com/1130416/172072097-e9058226-65b4-43ff-a017-f2a235691fc6.png" width="40%" align="center" style="padding:1px;border:1px solid black;" > <img src="https://user-images.githubusercontent.com/1130416/172072097-e9058226-65b4-43ff-a017-f2a235691fc6.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
</p> </p>
<br> <br>
---- ----
## Chart patterns ### chart patterns
* used in conjuction with candlestick charts * used in conjuction with candlestick charts
* longer-term analysis of market movements * longer-term analysis of market movements
@ -102,7 +101,7 @@
* dont tell about longer term trends * dont tell about longer term trends
### Double top ##### double top
* bearish pattern * bearish pattern
* buyers tried wtice to push price higher * buyers tried wtice to push price higher
@ -119,7 +118,7 @@
</p> </p>
<br> <br>
### Double bottom ##### double bottom
* bullish pattern * bullish pattern
* sellers came in twice * sellers came in twice
@ -138,7 +137,7 @@
<br> <br>
### Asceding triangle ##### asceding triangle
* charts never trade in a straight line * charts never trade in a straight line
* charts trend * charts trend
@ -152,13 +151,15 @@
<p align="center"> <p align="center">
<img src="https://user-images.githubusercontent.com/1130416/172072378-59cffb28-7589-44fc-8e54-b040ec239496.png" width="40%" align="center" style="padding:1px;border:1px solid black;" > <img src="https://user-images.githubusercontent.com/1130416/172072378-59cffb28-7589-44fc-8e54-b040ec239496.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
</p> </p>
<br> <br>
--- ---
## Trends ### trends
* we can't trade from patterns all the time, they are quite rare * we can't trade from patterns all the time, they are quite rare
@ -168,16 +169,17 @@
<br> <br>
### Asceding wedge - higher lows ##### asceding wedge - higher lows
<br> <br>
<p align="center"> <p align="center">
<img src="https://user-images.githubusercontent.com/1130416/172072540-324afc3d-0b31-4ffd-ab4f-96a829d244bf.png" width="40%" align="center" style="padding:1px;border:1px solid black;" > <img src="https://user-images.githubusercontent.com/1130416/172072540-324afc3d-0b31-4ffd-ab4f-96a829d244bf.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
</p> </p>
<br> <br>
### Desceding wedge - lower highs ##### desceding wedge - lower highs
<br> <br>
@ -186,7 +188,7 @@
</p> </p>
<br> <br>
### Consolidation ##### consolidation
* give us a strong area of trade where traders have been before * give us a strong area of trade where traders have been before
* area in the chart moving sideways * area in the chart moving sideways
@ -201,19 +203,19 @@
</p> </p>
<br> <br>
### Support and resistance ##### support and resistance
* support and resistance are simply significant price levels * support and resistance are simply significant price levels
* resistance can become support if a price breaks through that level in an uptrend * resistance can become support if a price breaks through that level in an uptrend
* vice versa for a downtrend * vice versa for a downtrend
### Moving averages ##### moving averages
* SMA: arithmetic mean of prices over a given time period * SMA: arithmetic mean of prices over a given time period
* EMA: weighted and give more importance to recent prices * EMA: weighted and give more importance to recent prices
### Relative strength index (RSI) ##### relative strength index (RSI)
* plots the relative strength of the price compared to previous prices * plots the relative strength of the price compared to previous prices
* momentum indicator * momentum indicator
@ -221,18 +223,18 @@
* below 30: price is relatively cheap (oversold) * below 30: price is relatively cheap (oversold)
* can't predict how the price will change in the future * can't predict how the price will change in the future
### Average true range ##### average true range
* measure of daily price volatility * measure of daily price volatility
* tell us the true amount the price could move in a given day * tell us the true amount the price could move in a given day
* largest probably move for one day based on previous data * largest probably move for one day based on previous data
* can be used to set our stop loss and give the trade some breathing room * can be used to set our stop loss and give the trade some breathing room
<br>
---- ---
### how to trade with trends
## How to trade with trends
1. Identify the market trends 1. Identify the market trends
2. Ask where are the main areas of trade 2. Ask where are the main areas of trade
@ -242,16 +244,15 @@
- is the candlestick telling us that the trade will go in the direction of our trade? - is the candlestick telling us that the trade will go in the direction of our trade?
- is the trade bullish or bearish based of candlestick patterns? - is the trade bullish or bearish based of candlestick patterns?
<br>
### Trading tools:
* [Tradingview](https://www.tradingview.com/)
* [Tokenmetrics](https://tokenmetrics.com/)
---
### resources
* [tradingview](https://www.tradingview.com/)
* [tokenmetrics](https://tokenmetrics.com/)