Technical Analysis Vs Fundamental Analysis

What is the difference between Fundamental Analysis and Technical Analysis?

Fundamental analysis is investigating the current value of a crypto currency and the effect it has in influencing it’s volatility or price movement.

Read it again. And again!

On the other hand, Technical Analysis involves the use of solid past history to analyze and predict future price movements.

Fundamental analysis tells you WHAT to buy, while Technical analysis tells you WHEN to buy.

Let’s talk more about technical analysis. Firstly, let’s look at DOUBLE TOPS and DOUBLE BOTTOMS.

Double tops and bottoms are important technical analysis patterns used by traders.

A double top has an 'M' shape and indicates a bearish reversal in trend, while a double bottom has a 'W' shape and is a signal for a bullish price movement.

There is also TRIPLE TOP and TRIPLE BOTTOM. A triple top formation is a bearish pattern since the pattern interrupts an uptrend and results in a trend change to the downside. Its formation is as follows: Prices move higher and higher and eventually hit a level of resistance, falling back to an area of support. The opposite is for the Triple Bottom. Take a look at this image from THINKMARKETS page.

Triple Top and Triple Bottom patterns are the types of reversal chart patterns. Triple Top is a bearish reversal chart pattern that leads to the trend change to the downside. Whereas Triple Bottom is a bullish chart reversal pattern that leads to the trend change to the upside.

You can use these technical analyses in crypto, Forex, stock trading.

HOW TO RUN FUNDAMENTAL ANALYSIS

You need to look at the following things:

1. Market cap
2. Tokenomics
3. Utility
4. Social media engagement, especially Twitter and Telegram

5. White paper
6. Audit
7. Founders
8. Team
9. Purpose

10. Community

If you study these things about a coin, you can guess how well it'll do. This is why even though $vet is at 0.1 for a very long time, I still believe it with my full chest. It's just time.