From 3aa5471c2021873d2820b0cab9c0eae2475d9015 Mon Sep 17 00:00:00 2001
From: "dr. mia von steinkirch, phd"
<1130416+mvonsteinkirch@users.noreply.github.com>
Date: Tue, 7 Feb 2023 16:25:36 -0800
Subject: [PATCH] Update README.md
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.../day-trading/technical_analysis/README.md | 29 +++++++++++++++++--
1 file changed, 26 insertions(+), 3 deletions(-)
diff --git a/defi_and_trading/day-trading/technical_analysis/README.md b/defi_and_trading/day-trading/technical_analysis/README.md
index 2e6bfff..f7d7535 100644
--- a/defi_and_trading/day-trading/technical_analysis/README.md
+++ b/defi_and_trading/day-trading/technical_analysis/README.md
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## technical analysis
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### tl; dr
* uses trading data to analyse and predict price patterns
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### candlestick charts
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* data rich trading analysis
* time and price details
* traders use candlestick chat patterns to antecipate the future
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##### hammer pattern
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* bullish pattern
* sellers drove price lower during the day
* buyers came in and the price finished higher
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##### shooting star pattern
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* bearish pattern
* buyers drove price high
* sellers won and price fell lower
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##### bullish engulfing pattern
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* bullish pattern
* bullish candlestick "engulfed" the bearish candlestick
* represents a strong reversal in the price action
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##### bearish engulfing pattern
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* bearish pattern
* bearish candlestick engulfed the bullish candlestick
* represents a string reversal in the price action
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### chart patterns
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* used in conjuction with candlestick charts
* longer-term analysis of market movements
* bullish and bearish patterns
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* dont tell about longer term trends
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##### double top
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* bearish pattern
* buyers tried wtice to push price higher
* buyers unable to push price higher
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##### double bottom
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* bullish pattern
* sellers came in twice
* price found support of buyers twice
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### trends
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* we can't trade from patterns all the time, they are quite rare
* trends patterns will guide us more often
* patterns can be housed within trends
* if we can find the trend, we can ride the trend for profit
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##### asceding wedge - higher lows
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##### desceding wedge - lower highs
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### how to trade with trends
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1. Identify the market trends
2. Ask where are the main areas of trade
- where is support and resistance?
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### resources
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* [tradingview](https://www.tradingview.com/)
* [tokenmetrics](https://tokenmetrics.com/)