A Good Glossary of Cryptocurrency Technical Analysis Terms – You Really Need to Understand These

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Below is a good article on terms used in cryptocurrency.  If you are into cryptocurrency, then you really should take the time to learn these by heart.  If you are not into cryptocurrenct, then you should take a few minutes to read and understand these as your clients make this a part of their linguistics. Check it out.See more at https://kcbusinesslawgroup.com/Here is a Glossary of Key Cryptocurrency Technical Analysis Terms That You Need to KnowDONALD PENDERGASTWelcome to the world of technical analysis, a trading approach that seeks to create pricing targets based on historical price movements and other available quantitative information.A beginner diving into the world of cryptocurrency technical analysis trading videos will likely find themselves wrestling with several words they may not be familiar with, making it that much more difficult to extract actionable information. We’ve put together a quick-hits list of technical analysis terms you should know to get more value from your research.Average Directional Index (ADX):Calculates the strength of a market trend over X-number of price bars. Typically used with the DMI to enhance accuracy. ADX (14) readings below ten often precede consolidation zone breakouts. Readings above 60 are unsustainable and warn of impending trend exhaustion.Average True Range (ATR):Used to ID volatility breakout trading signals and confirm trend exhaustion. Often used to create automatically-adjusting trailing stops. Breakout price bar ranges that are 2-3 times greater than the ATR (14) often initiate powerful market trends.Bollinger Bands (BB):Standard deviation envelopes that determine overbought/oversold extremes in trendless markets. BB’s are highly useful for breakout traders and for identification of price/momentum divergences. The ‘Bollinger Band Squeeze’ price pattern helps confirm a market’s rapid transition from an ultra-low to high volatility range.Breakout:A term used to describe a powerful price move out of a well-defined consolidation zone or chart pattern. Confirmed violations of trendlines or key support/resistance levels are also considered breakouts.Commodity Channel Index (CCI):This oscillator identifies overbought/oversold extremes in trendless markets and also helps identify ‘pullback’ trade entry zones in trending markets. CCI is also a highly sensitive price/momentum divergence indicator. Produces many varieties of short-term trading signals.Consolidation:A trading range marked by well-defined, low-volatility price swings. Occurs as a ‘pause’ pattern in a strong trend and can also occur at market tops and bottoms. Chart patterns such as pennants, wedges, and rectangles all depict consolidations. The longer the consolidation time period, the more powerful the eventual breakout may be.Chaikin Money Flow (CMF):A price range/volume indicator that measures the flow of institutional money in/out of a market. Highly useful in confirming volatility breakouts and trend strength. CMF is also an exceptional divergence indicator.Cycles:Repetitive patterns of buying and selling pressure that manifest as oscillating waves (price swings) in all liquid markets. Calculating the average cycle length (measured trough to trough) can provide traders with advance knowledge of high-probability swing termination and/or reversal zones.Directional Movement Index (DMI):A trend confirmation indicator, normally used with ADX to determine trend strength. Crosses of the DMI+ line above/below the DMI- line can be used as trading signals. When a […]

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