The crypto industry is witnessing a tremendous surge in the demand for trading as more and more people invest their money into digital assets. As such, many new traders are looking to understand the best strategies to use when trading cryptocurrencies. One popular approach is technical analysis, which uses past price data and charting techniques to predict future prices. In this article, we will explore some of the secrets behind technical analysis in crypto trading and discuss how best automated crypto trading platform can help you take advantage of them.

What is Technical Analysis?

Technical analysis is an approach traders use to analyze price movements and trends of a particular asset or security over time. It involves studying the historical performance of an asset’s price, volume, volatility and other indicators to identify patterns that indicate future price changes. By using charts, indicators and other analytical tools, traders attempt to predict where prices might be headed next.

How Does it Work?

Technical analysis works because markets move in predictable cycles or patterns based on past events or occurrences. By analyzing these patterns and indicators from multiple timeframes, traders can assess whether a cryptocurrency may be poised for appreciation or depreciation over certain periods of time. The key is recognizing potential patterns early enough to execute trades before any drastic changes occur in the market sentiment towards a particular asset or currency pair.

Benefits of Technical Analysis

There are several benefits associated with using technical analysis when trading cryptocurrencies:

• Helps Identify Trends Early

Using technical analysis helps traders better identify potential short-term trends before they happen due to its focus on past price action and chart patterns. This enables traders to stay ahead of market moves by being able to buy/sell at opportune moments more easily than if relying solely on fundamental factors like news releases or economic data releases alone.

• Gives Insight Into Volatility Levels

Another benefit of technical analysis is its ability to provide insight into volatility levels for different cryptocurrencies within certain predetermined time frames such as hourly, daily etc.. This allows traders to understand what could cause price fluctuations ahead of time so they can prepare accordingly for potential profits or losses within those timespans depending on their strategies employed at those timescales.

Tools & Indicators Used For Technical Analysis:

To successfully employ a technical analysis strategy when trading cryptocurrencies, one must have access to various tools and indicators that allow them to view different aspects of market behaviour such as support/resistance levels, volume, moving averages, etc. There are numerous software products available today that provide these features along with comprehensive tutorials/documentation explaining how they work so that beginners can quickly learn how to use them effectively without having extensive prior knowledge of the markets themselves.

How the best automated crypto trading platform can help:

Using automated crypto trading platforms such as 3commas not only allows users to access all the necessary tools & indicators required but also provides pre-defined “strategies” consisting of multiple signals (such as bots) that have been optimized according to specific criteria by experienced professional analysts & programmers. This makes it easier & faster to find effective strategies as users don’t need to manually test each signal through trial & error approach while still being able to customize settings to suit their own preferences if desired. The end result is a much higher success rate without the same amount of effort normally associated with manual backtesting & optimisation processes, which typically involve creating your own customized strategies from scratch yourself.


Using technical analysis when trading cryptocurrency can be profitable if done correctly, however, there are still challenges that inexperienced novice investors try to use this method without having full understanding of all the complexities underlying the markets, meaning mistakes made lead to significant losses rather than gains. Fortunately, best automated crypto trading platform offer excellent solutions for those who want to reap rewards without having to spend countless hours learning ins outs of every indicator tool available while simultaneously giving plenty of options for those who want to tweak parameters in order to achieve optimal results possible per the situation presented.