How to analyze the feeling of the market for investment decisions in cryptocurrency
The world of cryptocurrency has exploded in recent years, with the price of Bitcoin achieving historical maximum and other activities such as Ethereum and Litecoin that have significant growth. While many people have invested a lot in cryptocurrencies, some investors are not yet sure how they can make well -founded investment decisions. In this article we will examine the concept of analysis of market feelings and offer a step-by-step guide to analyze investment reports for investment purposes.
What is the analysis of the market feeling?
The analysis of the market feeling refers to the investigation of the attitudes, emotions and behaviors of investors to a certain class of activity or market segment. This implies data analyzes such as the trading volume, price movements and news titles to evaluate trustworthy levels, expectations and tolerance to the risk of investors. By understanding the feeling of the market, investors can make more and more well -founded decisions about their investment letters.
Why analyze the feeling of the market?
Analyze your emotions and prejudices when you make investment decisions. Consider the following advantages of analysis of the market feeling:
* Improvement of the decision -making process : By analyzing the feeling of the market, you get a deeper understanding of the attitudes and emotions of the investors so that you can make more informed decisions.
* Reduced risk : If you are aware of the potential market risks or volatility, you can adapt your strategy accordingly and reduce losses in the process.
* Increase in trust : The market feeling analysis identifies support and resistance areas and gives your investments a sense of direction and dynamics.
How to analyze the feeling of the market
To analyze the feeling of the market, follow the following steps:
Passage 1: collect data
Collect data from reliable sources such as:
- Websites from Finanznachrichten (e.g. Coindesk, Bloomberg)
- Social -Media platforms
- Online -Forum (e.g. R/Reddit cryptocurrency)
- App and websites of trade
Concentrate on certain cryptocurrencies or market segments such as Bitcoin, Ethereum or Altcoin.
Passage 2: Identify the indicators of the key feeling
Analyze the data to identify the indicators of the key feeling:
* Price movements : Search for trends, schemes and volatility in price movements.
* Commercial volume : Analyze the trading volume, especially in market lessons in which the prices are probably volatile.
* News and events : Monitor messages, press releases and announcements that can affect the markets.
Passage 3: Classify the feeling
Classify the feeling in one of the following categories:
* Positive : Relicistic feeling, which points out that investors expect price increases.
* Negative : Released feeling, which indicates that investors expect prices.
* Neutro : Mixed feeling where the prices are stable or floating.
Passage 4: Analyze the tendencies of the feeling
Over time, it analyzes trendy models and changes in the feeling. Seek:
* Trendy inversions : Identification of reversal questions when the prices change.
* Changes to volatility : Monitor the fluctuations of the negotiation volume to evaluate the market fighter.
* Cyclical tendencies : Look at seasonal or cyclical factors that can affect the feeling of the market.
Passage 5: evaluates the indicators of the feeling
Rate the reliability and accuracy of each indicator for the feeling. Hold:
* Frequency and consistency : How often do these indicators appear and how consistent are your changes?
* MIDNESS OF SELLATION : Can you trust your feeling or intuition for a certain trend?
* Risk vs. reward
: Do you invest on the basis of the feeling or are you only guided by the market?
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