87 lines
2.9 KiB
Markdown
87 lines
2.9 KiB
Markdown
---
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description: "Technical analysis fundamentals covering chart patterns, trend analysis, and TA concepts applicable to crypto OHLCV data."
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---
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# Technical Analysis Fundamentals
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Technical analysis is the study of historical price and volume data to identify patterns and predict future market movements.
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> **Dexorder scope**: Only crypto OHLCV data is available. TradFi data (equities, forex, bonds, options, macro) and alternative data (news, sentiment, on-chain) are **not** supported. See [`../pandas-ta-reference.md`](../pandas-ta-reference.md) for the full catalog of built-in indicators, and [`../indicators/indicator-development.md`](../indicators/indicator-development.md) for creating custom indicators.
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## Key Concepts
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### Price Action
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Raw price movement without indicators:
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- Support and resistance levels
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- Trend lines and channels
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- Chart patterns (head and shoulders, double tops, etc.)
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- Candlestick patterns
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### Trends
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Markets move in trends:
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- **Uptrend**: Higher highs and higher lows
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- **Downtrend**: Lower highs and lower lows
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- **Sideways**: Range-bound consolidation
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- Trend strength measured by consistency
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### Volume
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Trading volume confirms price movements:
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- High volume confirms trends
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- Low volume suggests weak moves
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- Volume precedes price
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- Divergences signal reversals
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## Common Indicators
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### Trend Indicators
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- **Moving Averages**: SMA, EMA, WMA
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- **MACD**: Trend and momentum
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- **ADX**: Trend strength
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- **Parabolic SAR**: Trend direction
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### Momentum Indicators
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- **RSI**: Overbought/oversold conditions (0-100)
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- **Stochastic**: Fast vs slow momentum
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- **CCI**: Cyclical trends
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- **Williams %R**: Momentum oscillator
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### Volatility Indicators
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- **Bollinger Bands**: Price envelope around MA
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- **ATR**: Average True Range for volatility
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- **Keltner Channels**: ATR-based bands
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- **Donchian Channels**: High/low breakouts
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### Volume Indicators
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- **OBV**: On Balance Volume
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- **VWAP**: Volume Weighted Average Price
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- **Volume Profile**: Price levels by volume
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- **Chaikin Money Flow**: Volume pressure
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## Timeframes
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Different timeframes for different strategies:
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- **Scalping**: 1m, 5m charts
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- **Day Trading**: 5m, 15m, 1h charts
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- **Swing Trading**: 4h, 1D charts
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- **Position Trading**: 1D, 1W charts
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Always analyze multiple timeframes for context.
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## Risk Management
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Essential principles:
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- **Position Sizing**: Risk 1-2% per trade
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- **Stop Losses**: Define exit before entry
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- **Risk/Reward**: Minimum 1:2 ratio
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- **Diversification**: Multiple uncorrelated positions
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Never trade without a plan and defined risk parameters.
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---
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## See Also
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- [`../pandas-ta-reference.md`](../pandas-ta-reference.md) — Full indicator catalog with calling conventions
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- [`../indicators/indicator-development.md`](../indicators/indicator-development.md) — Custom indicator development
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- [`../strategies/strategy-development.md`](../strategies/strategy-development.md) — Strategy development and backtesting
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