diff --git a/DeFi/day-trading/technical-analysis.md b/DeFi/day-trading/technical-analysis.md index c20e347..ec78d05 100644 --- a/DeFi/day-trading/technical-analysis.md +++ b/DeFi/day-trading/technical-analysis.md @@ -1 +1,110 @@ -## Technical analysis +# Technical analysis + +
+ +## What's technical analysis + +* uses trading data to analyse and predict price patterns +* gives us data points to compare and contrast +* uses chart patterns, price data, trading volume and indicators +* allows us to follow a systematic strategy that can be improved +* cannot predict the future + + +
+ +## Candlestick charts + +* data rich trading analysis +* time and price details +* traders use candlestick chat patterns to antecipate the future +* show market high and low for a given time period +* each candle is a period in time +* tells: open/close (body) high/low (wick) for a period of time + +
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+ +## Hammer pattern + +* bullish pattern +* sellers drove price lower during the day +* buyers came in and the price finished higher +* will continue tomorrow? +* where are open, close, high, low? + + +
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+ +## Shooting star pattern + +* bearish pattern +* buyers drove price high +* sellers won and price fell lower +* will this continue tomorrow? + + +
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+ +## Bullish engulfing pattern + +* bullish pattern +* bullish candlestick "engulfed" the bearish candlestick +* represents a strong reversal in the price action +* will continue tomorrow? + +
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+ +## Bearish engulfing pattern + +* bearish pattern +* bearish candlestick engulfed the bullish candlestick +* represents a string reversal in the price action +* will continue tomorrow? + +
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