Getting the best decisions on trading crypto relies on different factors and analysis. Trading crypto may possibly be a gamble if users trade based on impressions, guesses, or non-traders opinions.
Technical analysis is one of the most used strategies of crypto experts, stock investors, and even other assets in the financial market to gather information about what has happened and what is happening in the market.
So, what is technical analysis, and how can it help traders decide on their next move?
What is Technical Analysis
Technical Analysis aims to help traders evaluate the market while spotting trading opportunities based on price trends and patterns, volume data, and trading sessions.
It is a mathematical indicator to measure and assess the assets’ statistical record and predict their price and direction in the market.
By watching the history changes of an asset and its volume data, users will be able to analyze and determine how the asset works in the market, which will affect its movement in the coming days.
Technical Analysis Indicators
Trading charts are essential analysis tools that depict market price movements and trade volumes. It interprets a user’s risk parameters and helps spot a good trading position.
Bar charts measure the total share volume movement on a specific trading period – one day, week, month, or year.
Line charts represent potential trends in the crypto market. It shows the historical price action of an asset that connects closing prices or data points in a continuous line.
Candlestick charts are used to detail the price movement of an asset in a particular timeframe, typically green and red sticks.
It further has two elements: the body and the wicks. The body represents the opening and closing prices. A green candlestick portrays a bullish price movement, while a red candlestick depicts a bearish price movement.
The wicks signify the highest and lowest price of crypto assets within a timeframe.
Riverex Incorporates Technical Charts in Pools
The Riverex DEX ensures users are equipped with tools to help in successful, profitable trading inside the platform.
Thereby, its liquidity pool service integrates interactive charts and analytics that provide the following operations.
The platform’s technical analysis of liquidity pools entails data and charts from the connected blockchain networks: Ethereum, Binance, MoonBeam, Polygon, and Fantom.
- Total Value of Locked Tokens (TVL)
On the analytics overview page, the TVL is displayed using a line chart. Users can navigate the data by selecting from the five networks based on their tokens and the time frame of the collected data – one day, one week, or one month.
- Volume Trade
The volume traded is represented by a bar chart showing the 24-hour volume trade of the tokens in a particular network. Like the TVL, users can switch the data from daily, weekly, or monthly statistics.
- Top Tokens
The top tokens section lists the network’s most traded tokens in a pool. It displays the token’s current price, 24-hour trade volume, and TVL. With this information, traders can have a preview of what other traders are investing in.
- Top Pools
Apart from the tokens, the top pools are also visible on the page showing the total transaction fees, TVL, and 24-hour and 7-day trading volumes. The list may also have identical pool pairs but with different transaction fees. It should be noted that the fee in a pool is a sum of the platform fee and liquidity provider fee.
- Transaction List
The transaction list displays the record of pools with their total value, the amount of each token in a particular pool, transaction time, and transaction links.
The list can easily be tracked through a transaction action through the subdivided buttons – swap, add liquidity, or remove liquidity.
Being a decentralized platform, users can review the transaction through the transaction link that directs them to the respective block explorer to see the full details of the transaction.
With a friendly user interface, users can click the tokens to check their prices, history, and market behavior.
Additionally, the platform summarizes the pool pairs available in the platform on its dashboard page. Beside the pool pairs are percentages of pool fees – these are combined platform fees and liquidity provider fees or commissions.
It also displays the network from where the pool was created and their 24-hour and 7-day volume trades. The list is documented ascendingly by the total value of locked tokens.
The technical understanding analysis takes time and effort to fully master the process, but it will determine and provide a sound revenue once understood and used well.
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