Hello,
Welcome to season 4 of our weekly engagement challenge.
How have you been, This week is about Technical analysis in the crypto market. Here's my take on Technical analysis:

How would you define Technical Analysis in the Crypto ecosystem? Mention its Importance.

Technical analysis is the use of trading charts and various indicators to forecast future price movement of a crypto asset. It is studying the current trends, chart patterns, daily volume etc. and using all this data to accurately forecast the future price movement of a particular crypto asset in the market.

Importance

Technical analysis helps Traders and investors know when to buy a particular crypto asset and when to sell them.

• Technical analysis helps us know the current trend in the market weather an uptrend or a downtrend and to act accordingly.

• With Technical analysis you can discover which crypto asset would outperform others, in the next days, weeks or even months.

• Technical analysis helps to get in terms with the next major movements in the market.

Do you have practical knowledge of how to conduct technical analysis? Highlight some of the components of Technical analysis.

I have some knowledge on Technical analysis, they include knowing some chart patterns and what they represent to happen next, and also using indicators.
Popular chart patterns include: Descending triangle, Ascending triangle, Head and shoulders, Bullish flag etc.

Chart patterns helps you be conscious of what can happen next in the market while trading. We have Bullish and Bearing charts patterns.

What do you understand by technical indicators? Do you consider them effective for trading cryptocurrency? Which one is your favorite and how does it work? (Screenshots required where necessary)

Technical indicators are tools and signals that makes technical analysis way easier. They help to fully understand the current trend of the market, and to make future price movement predictions. There are various types of technical indicators. I personally stick with the popular indicators which includes:

MACD:

MACD, short for Moving Average Convergence/Divergence is a technical indicator that helps signal the changes in the strength, direction, momentum, and duration of an asset. It helps us know weather an asset is about to go Bullish (increase in price) or Bearish (decrease in price)

Moving Averages

These are trend lines that gives the average price of an asset, weather in a 1 day, 3 day or 7 day period etc. They can act as a major support or resistance in technical analysis.
A rising moving average indicates that the security is in an uptrend, while a declining moving average indicates a downtrend.

RSI

RSI stands for Relative Strength Index, it helps to know if an asset is overbought (price is overvalued) or oversold (price is undervalued). When RSI value is more than 70 it's indicates overbought, Likewise when RSI value is less than 30 it indicates asset is oversold.

Highlight the advantages and disadvantages of technical analysis. What's your advice to anyone about it?

Advantages

• Technical analysis isn't expensive to carry out. You just need your gadget and a knowledge of how it works to get started.

• it isn't hard to learn, anyone who is interested can learn technical analysis.

• Technical analysis helps you make quick market decisions.

Disadvantages

• Technical analysis may prove to be invalid due to fundamental market forces.

• Sometimes, technical analysis may not accurately predict future price movements.

While Technical analysis has proven to be important to carry out before making market decisions, it can be done together with Fundamental analysis. Fundamental analysis involves getting the lastest news and update about an asset and knowing how it can affect the price. This together with Technical analysis helps us to better understand the overall state of the market and as thus make better decisions.