Part 1: What is Technical Analysis? Starters guide for investing
Updated
Dear investor,
Welcome to my blog, where i am trying to learn investing with technical analysis (TA). I will share my studies and investings ideas with you, so we can discuss with each other.. First off all i'll investigate a theoretical studie. After this i'll try the theoretical studie on cryptocurrencies. This blog is for everyone who wants to start investing, but does not know how to begin.
Why cryptocurrency?
The volatility makes it more attractive to invest in Cryptocurrencie. Because of the volatility we can invest in short and long term targets.
My opinion: do not invest money what u can't loose and make youre own strategy on how much money you can invest.
What is TA and prognosis?
Technical analysis is an anlysis method whereby we will make an prognose by watching historical price.
From this sentence we can conlcude that all our prognoses are related on just one piece of information: the historical price movement. For the technical analyst the price movement is the only objective information what he has. All other informations are subjective and can be interpreted in different ways.
Another important word in the previous sentence is prognose. This word prognose is carefully chosen, because making of an prognose is not the same as predicting. Predicting suggest any certainty, but this is not possible. My analysis can be verry good, however it can be wrong because of all kinds of unexpected external/internal factors.The course is never unclear: it rises or goes down. This can not bi disputed.
With prognosing we sketch the most likely scenario, with targets and stop loss. Targets are my selling points. I'll not sell all my coins in just 1 target, but spread it in 1/4 part on each target. The stopp-loss is the level where i will get off my coins with loss. When reaching this level, i say that my analyse is wrong and i have to step out with loss timely before i'll have bigger problem (If i do not step out at this level, a will have a bigger loss what means i have to wait to long time to get my money back). When finishin my investing scenario, i'll make an counter scenario with the possible movement if my scenario fails.
(This is just an example on how to note targets and stopp-loss on youre charts, not an trade idea. Finding the target areas and stopp-loss are will be studied in another part..)
Summary:
In the following parts i'll write about charttechincal and statistically analyse. I'll studie Elliot wave and combine this with indicators to prognose an scenario. If you like to know more about investing with TA please follow me and feel free to place youre comment.
One generation passeth away, another generation cometh, but the earth abideth forever. The sun also ariseth, and the sun goeth down, and hasteth to his place where he arose.
The wind goeth toward the south, and turneth about unto the north; it whirleth about contunually, and the wind returneth again according to his circuits. All the rivers run into the sea; yet the sea is not full; unto the flow from whence the rivers come, thither they return again...
The thing that hat been, it is that which shall be; and that which is done is that which shall done; and there is no new thing under the sun..
Source: Elliot Wave Principle, Key to Market Behavior.
The books i mostly use and reccomend are:
- Elliot Wave Principle, Charles J. Collins
- Investing with technical analysis, H.J. Geels (Dutch)
Welcome to my blog, where i am trying to learn investing with technical analysis (TA). I will share my studies and investings ideas with you, so we can discuss with each other.. First off all i'll investigate a theoretical studie. After this i'll try the theoretical studie on cryptocurrencies. This blog is for everyone who wants to start investing, but does not know how to begin.
Why cryptocurrency?
The volatility makes it more attractive to invest in Cryptocurrencie. Because of the volatility we can invest in short and long term targets.
My opinion: do not invest money what u can't loose and make youre own strategy on how much money you can invest.
What is TA and prognosis?
Technical analysis is an anlysis method whereby we will make an prognose by watching historical price.
From this sentence we can conlcude that all our prognoses are related on just one piece of information: the historical price movement. For the technical analyst the price movement is the only objective information what he has. All other informations are subjective and can be interpreted in different ways.
Another important word in the previous sentence is prognose. This word prognose is carefully chosen, because making of an prognose is not the same as predicting. Predicting suggest any certainty, but this is not possible. My analysis can be verry good, however it can be wrong because of all kinds of unexpected external/internal factors.The course is never unclear: it rises or goes down. This can not bi disputed.
With prognosing we sketch the most likely scenario, with targets and stop loss. Targets are my selling points. I'll not sell all my coins in just 1 target, but spread it in 1/4 part on each target. The stopp-loss is the level where i will get off my coins with loss. When reaching this level, i say that my analyse is wrong and i have to step out with loss timely before i'll have bigger problem (If i do not step out at this level, a will have a bigger loss what means i have to wait to long time to get my money back). When finishin my investing scenario, i'll make an counter scenario with the possible movement if my scenario fails.
(This is just an example on how to note targets and stopp-loss on youre charts, not an trade idea. Finding the target areas and stopp-loss are will be studied in another part..)
Summary:
- For the technical analyst the price movement is the only objective information what he has;
- Making of an prognose is not the same as predicting. Predicting suggest any certainty, but this is not possible;
- The course is never unclear: it rises or goes down;
- With prognosing we sketch the most likely scenario, with targets and stop loss
In the following parts i'll write about charttechincal and statistically analyse. I'll studie Elliot wave and combine this with indicators to prognose an scenario. If you like to know more about investing with TA please follow me and feel free to place youre comment.
One generation passeth away, another generation cometh, but the earth abideth forever. The sun also ariseth, and the sun goeth down, and hasteth to his place where he arose.
The wind goeth toward the south, and turneth about unto the north; it whirleth about contunually, and the wind returneth again according to his circuits. All the rivers run into the sea; yet the sea is not full; unto the flow from whence the rivers come, thither they return again...
The thing that hat been, it is that which shall be; and that which is done is that which shall done; and there is no new thing under the sun..
Source: Elliot Wave Principle, Key to Market Behavior.
The books i mostly use and reccomend are:
- Elliot Wave Principle, Charles J. Collins
- Investing with technical analysis, H.J. Geels (Dutch)
Note
The technical analysis is based on three assumptions: 1. all information is processed in the prices;
2. prices moving in trends;
3. history repeats itself.
The market knows three species of trends:
1. horizontal
2. rising (upward)
3. falling (downward)
It is important to trace as soon as possible in which stage the trend is.
Disclaimer
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