What Is Technical analysis?-when it is Effective

Today we are Discussing what is Technical analysis.

Technical analysis is an analytical method for predicting the direction of prices by studying past market data, primarily price and volume.

Here at ITC we don’t want to sell you a dream like some influencers and forex gurus, we buy and hold projects with strong fundamentals and occasionally use TAs to confirm entries or find general long-term trends.

It should not be used as the only reason to buy a coin, as there are many other factors, the purpose of TA is only to find you a good entry point after you have done all the other research. Crypto TA is not as effective as stocks or forex due to how early the market is and hence its volatility, so take TA in crypto with a grain of salt.

Also known as TA, it can be used for short-term and long-term price predictions. The main idea of ​​TA is to be able to identify the trend, this can be bearish, bullish, or horizontal.

There are many tools and strategies in TA and every trader has their own way that works for the way they trade.

When is TA most effective?

TA is most effective when there are enough past data points, for example TA on BTC is more accurate than newly released coins because BTC has 10+ years of data to analyze.

Timeframes are key depending on how you trade, this refers to what scale you use, the most commonly used time frames are 1W, 1D, 4Hr, and 1 hour Each time frame has its own usage and a different way of running TA.

1W and 1D – Long-Term trends

4Hr and 1Hr – Short Term trends