6 Top 6 Ways to Trade Bitcoin: Useful Crypto Trading Strategies Types. Micro Trading or Scalping; Day Trading; Swing Trading; Position Trading; Margin Trading; Algorithmic Trading; 7 Top Ten Technical Trading Tips; 8 Bitcoin Chart Trading Analysis: Final Word. Sep 18, · Bitcoin Investment Trading Technical Analysis Guide In this guide, we’ll cover the basics of fundamental analysis versus technical analysis and break down the core axioms of the technique. We’ll also proceed to explain moving averages and support and resistance levels to help you gain a greater understanding of this powerful and effective. Trading information is requested from bitmoneylab.de Normally trading data propagates almost instantly as trades are executed. However, sometimes bitmoneylab.de provides trade data several minutes after the actual trades, or trade data appear out of order.
Bitcoin trading analyticsBitcoin realtime charts for order book, trades and arbitrage opportunities.
Long term analysis of market trends has demonstrated that pricing patterns are inherently repetitive, which many leading industry experts attribute to market psychology. By assessing emotional drivers such as fear and greed and comparing them to chart patterns, technical analysts are able to obtain a great deal of insight into current trends.
The Bitcoin market can be heavily influenced by the direct actions of investors. If a sufficient number of investors all draw the same conclusion from observable patterns, they often take action as a group that results in a prediction actually taking place. One of the most important elements of technical analysis is the practice of identifying key trends. In the context of technical analysis, trends refer to the current direction of a price, and are able to provide technical analysts with a greater understanding of the future actions of a given security.
Trends can occur in downward, upwards, or sideways patterns, and can be observed over short, medium, or long-term time frames. Identifying Bitcoin pricing trends can be an extremely valuable technique, but the volatility of the currency can make identifying long term trends difficult.
Bitcoin typically experiences several highs and lows over short periods, but there are a number of different techniques that technical analysts can use to cut through the noise that obfuscates accurate trend assessment.
Some of these techniques are extremely simple. Another powerful tool used by technical analysis to assess trends in the Bitcoin market is moving averages. By smoothing out price volatility over the short term, moving averages allow technical analysts to obtain a higher resolution image of the pricing trend for any given security.
The simplest and most basic moving average is referred to as such- a simple moving average, or SMA. A simple moving average gathers together the prices of a security over a specific period, then averages them out. An exponential moving average is similar technique that is performed in a virtually identical manner, but instead places an emphasis on the more recent price values gathered in a particular time period.
The insights delivered by moving average calculation can be expressed in the following example:. If a Bitcoin trader calculates the simple moving average of Bitcoin over two different periods- fourteen days and twenty one days respectively, they may find that the fourteen day simple moving average is higher than the twenty one day simple moving average. This result would indicate that Bitcoin is experiencing a short term upward trend.
If the inverse were true, however, and the twenty one day average was higher than the fourteen day average, it would indicate that Bitcoin was likely in a short term downward trend. Calculating the day simple moving average or the day simple moving average for Bitcoin can help traders gain a greater understanding of the long-term trends of the currency and identify any downward or upward patterns. The same technique used in short term calculations can be used to identify the long term trends of the currency- if the day average exceeded the day average it would indicate an upward trend, while the inverse would indicate a downward trend.
By identifying the support and resistance levels of a currency, traders are able to gain a great deal of insight in the current levels of supply and demand. Calculating these price floors provides a highly accurate representation of the current levels of demand for Bitcoin.
If the price of a currency drops to this support level, many traders will choose to invest in it, which ensures the price will not drop below the given support level. Remaining aware of this support level price is an extremely powerful asset for technical analysis, as it can help traders to determine the price point at which most investors and Bitcoin traders will consider Bitcoin to be oversold.
Resistance levels are the functional opposite of support levels, and are price points at which most investors will decide to sell their currency. Resistance can be interpreted as an accurate indication of supply, determined by the actions of sellers. Resistance levels can also be used to obtain an insight into points traders may consider a currency to be overbought.
Technical analysis is one of the most important tools for any Bitcoin trader, and makes the process of identifying trends and assessing market sentiment far simpler. Firstly, technical analysis is a hotly-debated topic that frequently spawns arguments regarding its efficacy, accuracy, and relevance. Many opponents of technical analysis posit that as the market already incorporates all available data into asset prices, technical analysis is rendered defunct, as the price history and other information it assesses has already been analyzed and taken into consideration.
All live trading information is collected from bitcoincharts. Data for the past 24 hours is displayed on the chats with 15 seconds granularity, but the site plans to implement a 2 month view. As the site is a one-page web app, there is no need to reload page to switch between different chart view.
Market activity is split into buying and selling and into liquidity supply and liquidity demand across exchanges to provide greater detail to analyses.
Each of these pairs is calculated for a desired trading volume of either 10, , , or BTC. These five pairs of indicators are calculated for each exchange to allow to compare trading activity among different exchanges.
Thus separating dynamics of bid and ask allows deeper understanding of the market. By using trade values across all exchanges as opposed to a particular exchange, it is possible to find out if a particular exchange is dominating the market and driving most of the volume.
In most cases the benefit from selecting the right exchange and the right trade execution strategy financially outweighs the moderate subscription cost of the site.
Charts are ordered to display indicators synchronously to analyze price movements with corresponding changes in order books and trading volumes. Charts are adjusted and calculated based on desired BTC volume with different volume meaning different prices and different behaviour. Recalculated every 15 seconds, Arbitrage tables also depend on BTC volume.
For free users, the table only updates once every 6 hours. It doesn't display an opportunity if there's too little volume offered at a pair of exchanges. It displays market order execution prices for corresponding volume instead of best prices. The top of the table displays the best available execution price for the volume. To calculate the price for a high volume, the tool delves deeper and deeper in the order book until it is able to fetch the declared volume. Then the total BTC volume requested is divided by the preferred currency to calculate the actual market price for a given volume and display how it varies with time.
The site has implemented support for multiple currencies and exchanges. Although full data set of indicators is provided in paid version, we provide limited set of indicators and delayed arbitrage charts free of charge to give an idea of what you can get as a paid customer. To subscribe, you need to login first. We don't use passwords as social login is more secure. When your status becomes "Logged in as It usually takes from 30 minutes to 1 hour to activate your subscription.
Wait for some time and reload the page. Check Configure tab to see if your subscription was activated. Charts are ordered to display indicators synchronously. So you can analyse price movements with corresponding changes in orderbooks and trading volumes. You can use mouse to increase detalization of the chart. Just drag part of the chart to zoom in and double click to zoom out. Try several times to play with it. Also you can use zoom window on the last chart. Different volume means different prices and different behaviour.
Arbitrage tables are calculated depending on BTC volume. They are recalculated every 15 seconds. In details you can read further "Arbitrage tables" tab explanation. From the very beginning we assume this service as a business. The idea of this business experiment must be supported by customers in order to give us financial signals and incentives to further develop and improve the service and help grow overall understanding of the Bitcoin market among users and traders, and thus improve the bitcoin free market experiment itself.
Regardless of whether you are a guest or a paying member of our site, we value your attention. Our project is a business and as an all-new entrepreneurial idea it is an experiment, as it is Bitcoin itself. This project is an experiment from many points of view: it is Bitcoin promotion and an attempt to provide a useful tool which we as Bitcoin users and traders want for ourselves; it is an experiment in economics, learning, understanding and practicing different mainstream and non-mainstream economical schools and ideas; it is also an interesting technical experiment for us as software developers.
What does it mean for you as for users and customers of the business service which is in its early establishment state? It means that from the very beginning you will experience all problems we will have, especially technical. The only excuse we have is that Bitcoin technology itself is in its infancy and we hope for your understanding and generosity. From our side we pledge our time and efforts to provide you with a service more valuable for you than the amount of Bitcoins you spent on it.
The server collects order books from exchanges and trades from bitcoincharts. Below is a brief explanation of technical details.
The server requests order books from 12 Bitcoin exchanges every 15 seconds. We decided to focus our efforts on USD exchanges: mtgox.
The collector allows us to add new exchanges without technical difficulties. We plan to add non USD exchanges at some point in the future. Trading information is requested from bitcoincharts.
Normally trading data propagates almost instantly as trades are executed. However, sometimes bitcoincharts. Our algorithm accounts for these effects and correctly synchronizes charts in browsers. So sometimes parts of the charts are recalculated, resent and redrawn as data for old trades arrived.
Currently we display only 24 hours of data with 15 seconds granularity, but we plan to add a 2 months view with 15 minutes granularity soon. The web site is technically a one-page web application - it means we don't have page reloads so you can switch between charts instantly to compare them.
Chart drawing is slow on netbooks, but our measurements show there is space for improvements, so zooming and panning will get faster over time as our service matures. We see our website as an analytical tool that visualizes trading activity on exchanges. To add details, we distinguish between sides of a trade when it makes sense. This means splitting of market activity into buying and selling and into liquidity supply and liquidity demand.
Each pair is calculated depending on predefined trading volume. To have various focus of analyses there are a set of predefined trading volumes of 10, , , and BTC. Five pairs of indicators are calculated for each exchange to allow to compare trading activity among different exchanges. To switch between different exchanges and between predefined trading volumes two independent controls can be used to focus attention on one exchange and one trading volume scale at a time.
The 'allUSD' ticker is a consolidated view of all exchanges. The indicators are calculated for allUSD the same way, as if it was a real exchange. The order book of this composite exchange is just a standard consolidated limit order book compiled of all supported exchanges - that is, limit orders on all exchanges joined together and ordered by their respective limit price. The consolidated trade stream is just trades on all exchanges joined together and ordered by execution time stamp.
The computed charts for allUSD provide insights of what happens at Bitcoin market as a whole. For the first time it is possible to see how activity on any particular exchange differs from the market in general. Without saying that consolidated order book can show which arbitrage opportunity actually available depending on trading volume of the whole market and how it changed over time. For it almost always is, but if you want to trade less than BTC, the best available price is almost certainly a second-grade exchange having enough volume.
In most cases the benefit from selecting the right exchange and the right trade execution strategy financially outweighs our moderate subscription cost - so if you trade Bitcoins often, think of supporting us, so we can develop more visualizations and analytical tools and add more exchanges.
Bitcoin markets are illiquid markets with relatively low volumes where price for market orders varies significantly depending on demanded volume. Implying illiquidity of bitcoin markets, traditional tickers of best bid and ask prices are not relevant for practical trading. To help assessing price for the given volume of bitcoins, exchanges provide with so called Level 2 Market Data, including full anonymized order books. It is now possible to answer the question what is market price of the given order volume.