1/2/2024 0 Comments Binance academy charts![]() The channel has only been operating for seven months making it still relatively new. The channel has over 1,800 subscribers which are a small amount compared to popular cryptocurrency content channels. ![]() ![]() The channel is separate to the main YouTube channel for Binance which mainly hosts content related to Meetups. Others prefer to draw lines according to the highs and lows of the wicks.Binance Academy is an educational Youtube channel organised by Binance that focuses on educating users on important concepts related to cryptocurrency and the ecosystem surrounding cryptocurrencies and blockchain. The choice of points used to draw trend lines will affect the degree to which they accurately represent market cycles and real trends, making them somewhat subjective.įor instance, some chartists draw trend lines based on the body of the candlesticks, disregarding the wicks. While they are useful tools for technical analysis, trend lines are far from foolproof. Each type of chart may result in different highs and lows and, thus, slightly different trend lines. It’s important to consider the scale settings when drawing trend lines. On a semi-log chart, however, the 100% gain ($5 to $10) would occupy a much larger portion of the chart, as opposed to the 4% increase of the $120 to $125 move. In contrast, semi-log charts express variations in terms of percentage.įor example, a price change from $5 to $10 would cover the same distance on an arithmetic chart as one from $120 to $125. ![]() On an arithmetic chart, change is expressed evenly as the price moves up or down the Y-axis. The two most popular scales are arithmetic and semi-logarithmic (semi-log). In financial charts, the scale relates to the manner in which the change in price is displayed. Among the most important chart settings is the scale settings. In addition to choosing enough points to create a valid trend line, it’s important to consider proper settings when drawing them. Testing the trend line multiple times indicates that maybe the trend is not a mere coincidence caused by price fluctuations. So, when the price touches the trend line three or more times without breaching it, the trend can be considered valid. In some cases, the first two points can be used to define a trend in potential, and the third point (extended in the future) can be used to test its validity. But, most chartists agree that using three points or more is what makes a trend line valid. Technically, trend lines can connect any two points in a chart. Thus, it may be worth combining multiple TA techniques, as well as fundamental analysis to reduce risks. Still, technical analysis is a subjective field, and each person may present a completely different method for drawing trend lines. ![]() Downward trend lines are associated with consistent price drops, suggesting the opposite (supply is higher than demand). Naturally, upward trend lines indicate an increasing buying force (demand is higher than supply). They provide insights into the market supply and demand. While trend lines can be used in all kinds of data charts, they are usually applied to financial charts (based on market prices). The trend line may be tested several times, but as long as it isn’t broken, it is considered valid. The line can then be extended to try and predict important levels in the future. On the other hand, downtrend lines are drawn using the highest values (i.e., candlestick tops forming lower highs).īased on the highs and lows of a chart, trend lines indicate where the price briefly challenged the prevailing trend, tested it, and then turned back in its favor. In an uptrend, the lines will be drawn using the lowest points in the chart (i.e., candlestick bottoms forming higher lows). So, the difference between the two types of lines is the selection of the points that are used to draw them. ![]()
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