I’m relatively new to trading and am trying to get a better grasp of how to predict price movements. I know that no one can predict the market with 100% accuracy, but I’d love to hear from more experienced traders about the strategies and tools you use to anticipate whether the price of an asset will go up or down.
What types of analysis do you rely on? Do you focus more on technical analysis or fundamental analysis, or maybe a combination of both? How important is market sentiment, and how do you gauge it? Also, are there any particular indicators or chart patterns you find especially reliable?
I think it’s important to balance both technical and fundamental analysis. Technical analysis helps me understand price patterns, while fundamental analysis keeps me informed about the bigger economic picture. My go-to indicators are the RSI (Relative Strength Index) and moving averages. Always keep an eye on market sentiment too; news and social media can provide insights into how the crowd is feeling.
I think understanding market fundamentals is crucial. I focus on macro indicators and their effects on assets. I also use technical indicators like MACD and Bollinger Bands for entries and exits. Staying informed about global events is important too.
For short-term trades, I rely heavily on technical analysis. I use candlestick patterns, trend lines, and Fibonacci retracement levels to identify potential price movements. Don’t underestimate the power of practice; backtesting strategies on historical data can really improve your understanding of market behavior.
