Introduction: The encrypted asset market is no different from thetraditional financial market. There is a set of market analysis methods tofind, explore and summarize according to the changes in the market trend. Makepredictions. This set of market analysis methods can be divided into threelevels, fundamental analysis, technical analysis and news analysis. Theprevious article introduced fundamental analysis to you. This article willcontinue to introduce what is technical analysis, what is fundamental analysis,what is news analysis, what is analyzed and what is the basis for analysis.
1. Whatis technical analysis?
Technicalanalysis is an analytical method for investors to analyze the historical pricechanges and trading data in the period of investment target, sum up some marketlaws that can be followed.
1. The basis of technical analysis
The K-line analysis system is often used in technical analysis, whichrequires the help of a large number of chart formulas and indicator data tofind the cyclical pattern of price changes and key node characteristics.Because trading decisions often refer to a large number of technicalindicators, the prediction of future price trends is more accurate, and it ismore instructive for short- and medium-term transactions. Do a lot of study andpractice, constantly summarize analytical skills and apply them appropriately.Technical analysis such as K-line analysis is generally more suitable as ashort-term trading reference. From the long-term perspective of investment, itis necessary to further cooperate with fundamental research to better combinevalue investment and short-term trading to obtain the best returns.
The core of the data analysis, such as trading charts and indicators, is tosummarize the rules and grasp the market sentiment, so as to achieve the goalof buying low and selling high.Different traders have different analyses andjudgments about the same period of time.Because of the importance of Bitcoinand Ethereum in the cryptocurrency market, their price changes reflect themarket sentiment to a greater extent and are more regular.
K-line analysis system is composed of K-line theory and K-line graph,K-line is composed of red and green columns.Encryption market green column forthe positive line, red column for the negative line.Combining MA, EMA, MACD andother indexes, we can fully grasp the current multi-empty game situation, thechange of buyer and seller's forces, the price trend and the trend.
2. Technical Analysis Content
(1) Judgment of Trends
(2) Support and Resistance Levels
(3) Buy/Sell Points
2. Whatis fundamental analysis?
Fundamental analysis, also known as the fundamental analysis method, is acomprehensive analysis of the value of the investment target, the operatingconditions on which the value of the target depends, the development status ofthe target industry category, and the macroeconomic form of the market, so asto evaluate and judge the reasonable value of the investment target. , comparethe gap between the current price and the fair value of the market, determinewhether it has investment value, and how much investment space is there, andform corresponding investment recommendations. Through the evaluation andanalysis of internal and external environmental factors, the conclusions drawncan often help investors to formulate investment plans and strategies for optimalinvestment returns.
Fundamental analysis is an effective method for evaluating the target, becauseinvestors must understand the basic situation of the investment target, whichis the key to the investment transaction. Like technical analysis, the fundamentalanalysis of encrypted assets also has its own unique analysis indicators, suchas the number of active addresses, market attention, capital flow, etc.Investors can refer to these indicators for fundamental analysis. Fundamentalanalysis relies on objective facts and credible data. It should be noted thatdue to the large number of investment targets in the crypto asset market, thegood and the bad are mixed, in addition to the mainstream currencies with largemarket value and good consensus foundation, there are also gold and jade. Forsuch projects, you also need to pay special attention to screening during theinvestment process, and always put risk management and control in the firstplace.
1. Characteristics and applicable scenarios of fundamental analysis
①Comprehensive grasp of the basic trend
Fundamental analysis can comprehensively understand the currencyinformation, and can grasp the historical data of the currency morecomprehensively, thus helping us to have a clearer and more accurate judgmenton its basic trend, and also have a better understanding of the value of thecurrency itself. , which is convenient for investors to choose high-qualityinvestment targets for value investment.
②The difficulty of analysis is relatively low
Compared with technical analysis, fundamental analysis does not have somany patterns, indicators and data to refer to, and the overall analysisdifficulty is relatively low. It is a more friendly market analysis method fornovice investors, and can quickly understand all aspects. The market as a wholeis a must for every investor and trader, and fundamental analysis is the mostapplicable method.
③Suitable for long-term value investment
Because fundamental analysis can help investors to evaluate the reasonablevalue of a currency to the greatest extent, so as to judge the long-termdevelopment space of the currency, and not limited to whether the short-terminvestment is profit or loss, it is more suitable for those beliefs” Friendswith time" investor group.
How to do fundamental analysis?
Taking the crypto asset market as an example, if you want to conduct afundamental analysis of ETH, you need to understand the macro and microeconomic environment in an all-round way. First of all, looking at themicro-environment, we need to understand where ETH is in the entire cryptomarket, its historical price trend, historical price highs and price changes,the main operating model of the community ecology and future plans; secondly,we need to understand The development status of ETH, whether the ecologicalblockchain that can derive other applications is in a period of vigorousdevelopment or maturity or decline, whether the Ethereum network is in aleading position in this field, etc. Then explore the macro environment, suchas where the funds to support the development of the Ethereum blockchainnetwork mainly come from? How much are these funds affected by the state ofdevelopment in the traditional financial world? What are the main real-worldpain points to be solved by Ethereum and whether there are competitors in thesame race that pose a threat to it, etc.
Fundamental analysis is often suitable for novice investors, helping investorsto quickly and comprehensively understand an investment target that has notbeen deeply touched. Through comprehensive analysis, investors can learn how toevaluate the pros and cons of the target, verify and optimize the results offundamental analysis through long-term observation, gradually understand thevalue of various currencies in the crypto asset market, and have a basicunderstanding of the entire market and understanding. Through fundamentalanalysis, based on a basic understanding of the overall market, combined withtechnical and news analysis, investors can better understand the laws of thecrypto asset market, and can find high-quality investment targets andinvestment methods. Through reasonable trading operations and effective riskcontrol for a higher return on investment.
3. Whatis news analysis?
The news-side analysis is a market analysis method that mainly refers tovarious information of the company, such as policy changes, company plans,product adjustments, announcement information disclosed to the outside world,important personnel changes, company restructuring, etc. Disclosure, orobtained from some financial platforms, self-media and personal information.News is an important factor that triggers short-term fluctuations. Investorswill raise or lower their expectations for the investment target due to thequality of the news, which will lead to significant changes in the price of thetarget in the short term.
In the traditional financial market, policy-related news such as the Fed’sinterest rate hike and the central bank’s water release, or major changes invarious investment categories, will have a considerable impact on the market,bringing about overall changes or sector pattern adjustments. For the cryptomarket, since the value of consensus is even greater, the impact of news isalso more significant. If investors can seize real news opportunities, theywill naturally be able to capture greater short-term value.
1. Basis for message-side analysis
(1) Economic relevance
As an important part of world integration, economic integration has takenshape in the early years. In recent years, the global economy has shown a highdegree of correlation. Although the encryption market is an emerging financialfield, it is actually related to the traditional financial market. Last year,the epidemic caused a global economic recession, lack of liquidity in thefinancial market, the stock market crashed, and the crypto market could not beimmune. The “3 12” tragic slump occurred. Therefore, observing the correlationof various markets can help us understand the crypto market. follow-up trendsfor reference.
(2) Market sentiment determines the market trend
Market sentiment will be reflected in price trends, and price trends canreflect market sentiment, which is also an important basis for news analysis.When there is a "heavy news" in the market, it often"ignites" the emotions of most investors, which affects the price.However, most of the news has a short impact on the market, and there is asaying in the circle that "good landing is bad", so investors need tomake judgments on the value of the news as soon as they get the news, and tryto avoid copying what others say.
2. How to perform message analysis?
(1) When you first enter the market, you need a wide range of news
For novice investors who have just entered the market, they can read allkinds of news. On the one hand, they can increase their understanding andcognition of the entire market. acuity.
(2) Learn to judge the reliability of information
The news in the market is often complex and disorderly, so investors needto have a certain ability to screen out important, valuable and realinformation. When a message is obtained, it is first necessary to judge theimportance of the information. After filtering out the important information,it is necessary to further identify the authenticity and reliability of theinformation. It should be mentioned that unconfirmed news should be treatedwith caution. There are many cases in the market where investors made mistakesin judgment due to false information, resulting in investment losses.
(3) Analyze and interpret important market news
After it is clear that the information is true, reliable and influential,it is possible to analyze whether the attribute of the news is bullish orbearish. Of course, it is not only necessary to analyze the investment targetdirectly corresponding to the news, but also the sector to which the targetbelongs and the linked encrypted assets. A brief analysis is also required. Let'stake the previous information "Tesla supports bitcoin payment in theUnited States" as an example. Once the news is released, it will directlydrive the price of bitcoin, and bitcoin, as the wind vane of the entireencryption market, will bring other encrypted assets. good. In fact, whenmaking investment judgments, it is also necessary to pay attention to thetimeliness of news. Although some news will have long-term effects, it may notcause fluctuations in the disk in the short term.