Good day all, today I will be taking my assignment for professor @reminiscence01 in the Steemit crypto academy beginner course program.

1a) In your own words, explain Technical indicators and why it is a good technical analysis tool.

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Technical Indicators are mathematical formulas that are used by cryptocurrency traders to calculate the price and volume of the market. It is a technical analysis tool that is used to analyze the market trend the market is uptrend and downtrend when to enter the market and when to exit the market. It predicts the feature price of the asset. In the market, it shows what is the best time to enter the market and maximize profit and what is the best time to exit the market and minimize Loss.

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So, It is a good technical analysis tool because it predicts the feature price of the trend, gives information about the market trend, shows the volatility in the market, and helps traders to tell the current situation of the market, traders are easily trading in the market.

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1b) Are technical indicators good for cryptocurrency analysis? Explain your answer.

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Yes, Technical Indicators are good for cryptocurrency analysis as they predict the featured trend of the market It gives you information that when to Enter the market and when to exit the market we can easily maximize our profit and easily minimize our loss. In the Technical indicator, we can easily see the signal of the market We know that the market is Uptrend and downtrend as receiving signal of the market we can easily decide that how to enjoy the market. Also, when it gives information about trends then we can decide we should continue our trading or will stop our trading.

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c) Illustrate how to add indicators on the chart and also how to configure them. (Screenshot needed).

I visit TradingView.com.

Here Click on indicators. As Shown in the Pic

After Clicking on the Indicator indicators tab will open, Here I can search the indicator Simple Moving Average.

Click on Simple moving Average then Indicator will be successfully added to the chart.

Now I Am Gonna to Show You How to configure the indicator.

Here click on the setting as shown in the picture.

Here You can change the Input, Style, and Visibility.

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2a) Explain the different categories of Technical indicators and give an example of each category. Also, show the indicators used as an example on your chart. (Screenshot needed).

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The different categories of the technical indicators are as follows.

• Volatility Based Indicator
• Momentum Based Indicator
• Trend Based Indicator

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Volatility Based Indicator

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Volatility Based Indicators help traders to show the price fluctuations in the market. With the help of Volatility based indicators, traders are easily making a profit and saved by getting losses.

The example of Volatility based indicators is Bollinger Bands, Average True Range, etc.

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Momentum Based Indicator

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A momentum-based indicator shows us the reversal trend in the market also shows a Momentum of the market means show that the market is on a strong point or a weak point. It helps the trader to know that when the price of an asset is high and when the price of an asset is low. When to enter a market and when to exit in a market. Momentum-based indicators are very useful the examples of Momentum Based indicators are Relative strength index(RSI), Stochastic oscillator, MACD, etc.

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Trend Based Indicator

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It is a very important technical indicator. It shows the trend of the market. It helps traders that when the price is in an uptrend and when the price is in a downtrend. It means that traders Know when to maximize profit and when to minimize loss. Examples of trend-based indicators are ADX, Moving Average, etc.

b) Briefly explain the reason why indicators are not advisable to be used as a standalone tool for technical analysis.

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No Indicators are 100 % Reliable. Likely, Most of the Indicators show you single particular information like a trend, Volatility of market, Momentum. When we use indicators alone it shows negative results like giving negative signals like Indicator shows that the market is going in the upward trend then we invest and after some minute it will going down so we can get a loss so, it will be dangerous to use indicator alone. So, for technical analysis, it is not advisable to use indicators alone.

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c) Explain how an investor can increase the success rate of a technical indicator signal.

The Investor can increase the success rate of a technical indicator signal by the first thing he should know is what he is going to do. He must have information on how to use the indicator. He should not use the indicator alone. Even if he adds some of the indicators it helps him that How to enter the market and maximize our Profit and How to Exit the Market and Minimize loss. So, it must need to getting knowledge first because without knowing it is not possible to get profit. But If you have knowledge About Indicators then you easily maximize your profit.

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Conclusion

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Thank you professor @reminiscence01 for this informative and insightful lesson.

Respected mention

@reminiscence01

Regards,

@fabiha