A

 guide  to  getting  started  with  Technical  

Analysis  for  Cryptocurrencies
 Section  1:  Technical  Analysis  Basics
What  it  is  &  isn’t Charting  Basics Tools  &  Software

Section  2:  Patterns  &  Trends

Bullish  Patterns Bearish Patterns Bases  &  Breakouts

Section  3:  Technical  Indicators

Essential  Indicators Advanced  Indicators

Section  4:  Automating  the  Process

Step  away  from  the  screen! Alerts  &  Limit  Buys
 Step  1:  Get  a  Wallet
Section  1:  Technical  Analysis  Basics

Basic  Terms  &  Definitions Charting  Basics  &  Essentials Tools  &  Software

• My  definitions
• How  TA  can  help  you
• What  it  won’t  do  for  you
 What  it  is  and  isn’t
The  “official”  definition:  
Technical  Analysis  -­‐ financial  analysis  that  uses  patterns  in  market  data  to  identify  trends  and  make  predictions
My  definition:  
The  use  of  past  price  info  to  identify  trends  and  areas  of  supply  &  demand.    A  picture of  market  psychology.    

$1,500
$1,600
$1,300
$2,000
 What  it  is  and  isn’t
Technical  Analysis  is  part  Science and  part  Art.
Science Art
On  one  side  you  have   Fear  &  Greed
Statistics Estimates
Averages Probability
Ratios Flexibility
logarithmic  charts News
percentages Changes
WHAT  DO  YOU  SEE?
• What  is  the  general  trend?
• Where  is  the  most  recent  top  or  bottom?
• Where  are  we  relative  to  that?
• Are  we  forming  a  new  trend?
• Where  are  the  support  &  resistance  zones?
• Do  you  see  a  pattern  or  base?
• Crosscheck  w/  other  indicators
Line OHLC  Bar

Candlestick
 Graph  Area

Price  Axis

Volume

Indicators

Time  Axis
Highest  Traded  Price

Open  or  Close  Price

Open  or  Close  Price

Lowest  Traded  Price

Highest  Traded  Price Highest  Traded  Price
$6.80 $6.80

Closing  Price Opening  Price

$6.20 $6.20

Opening  Price
Closing  Price
$5.00
$5.00

Lowest  Traded  Price

$4.30 Lowest  Traded  Price $4.30
Highest  Traded  Price Highest  Traded  Price
$6.80 $6.80

Closing  Price Opening  Price

$6.20 $6.20

Opening  Price
Closing  Price
$5.00 $5.00

Lowest  Traded  Price Lowest  Traded  Price

$4.30 $4.30
Days Week
• Free  version  available  as  well  as  mobile  app
• Not  just  cryptocurrencies  – also  covers  stocks,  commodities  &  other  FOREX  markets.
• Social  following  &  commentary
• Charts  feel  the  same  as  TradingView,  desktop  &  mobile  versions
• 30-­‐day  trial,  paid  tool  after  that.    ~$100  for  6  months
• Direct  access  to  all  major  cryptocurrency  exchanges!
 Section  1:  Technical  Analysis  Basics
What  it  is  &  isn’t Charting  Basics Tools  &  Software

Section  2:  Patterns  &  Trends

Bullish  Patterns Bearish Patterns Bases  &  Breakouts

Section  3:  Technical  Indicators

Essential  Indicators Advanced  Indicators

Section  4:  Automating  the  Process

Step  away  from  the  screen! Alerts  &  Limit  Buys
Over  time,  prices  create  trends.    One  of  the  first  steps  in  technical  
analysis  is  to  understand  what  the  trend  is.    3  Primary  Types

Up  Trend Down  Trend Sideways  Trend

Areas  of  repeated  buying  or  selling.
Typically  on  horizontal lines  but  also  works  on  diagonal  trends.

Resistance

Support

Support
Diagonal  trends  also  create  support  and  resistance  lines  that  once  
broken,  can  signal  a  change  in  trend.

Up  Trend Down  Trend Sideways  Trend

Resistance

Support
 Beyond  trends,  there  are  some  very  common  patterns  you’ll  see  
in  charts.    We’ll  take  a  deeper  look  at  the  following:

Head  &  Shoulders Double  Top Cup  &  Handle

Inverted  Head  &  Shoulders Double  Bottom Bull  Flag/Pennant

Ascending  Triangle Descending  Triangle Symmetrical  Triangle

These  patterns  will  have  some  associated  terms  you  need  to  
understand  first:
Base is  an  area  of  consolidation  – the  longer  and  more  structured  the  better.
Slightly  different  than  the  common  pattern  but  sometimes  overlaps.

Breakout Point  (also  called  the  “pivot”  point)

This  is  a  common  and  reliable  bearish  pattern  that  consists  of  
three  peaks  with  the  middle  peak  being  the  highest.    Typically,  the  
right  shoulder  (or  third  peak)  is  a  little  lower  than  the  first.    The  
breakpoint  is  the  “neckline”  at  the  bottom  of  the  formation.
This  is  a  bullish  pattern  that  consists  of  three  lows  with  the  
second  one  being  the  lowest.  The  break  out  point  is  the  
“neckline”  at  the  top  of  the  formation.
The  double  top  is  a  bearish  pattern  that  consists  of  two  
prominent  peaks  with  the  second  peak  being  a  little  lower  than  
the  first.    They  are  typically  steep  peaks  that  form  an  M  shape  
followed  by  a  sharp  sell-­‐off
The  double  top  is  a  bullish  pattern  that  consists  of  two  prominent  
support  zones  with  the  second  being  a  little  lower  than  the  first.    
They  are  not  typically  as  steep  as  double  tops  but  do  form  a  W
shape.
A  bullish  pattern  that  follows  a  rally  and  consisting  of  two  parts.    
The  cup  is  a  round  saucer  shaped  bottoming  in  the  price  and  the  
handle  is  a  short  pull  back  close  to  the  old  highs.
A  bullish  pattern  that  follows  a  rally  and  forms  a  right  triangle  
with  the  bottom  of  the  tringle  wedging  up  as  the  pattern  
progresses.
A  bullish  continuation  pattern  that  follows  a  sharp  rally  and  forms  
a  small  triangle  with  the  bottom  of  the  tringle  wedging  up  as  the  
pattern  progresses.    Similar  to  the  ascending  triangle,  but  shorter.
A  neutral pattern  that  signifies  a  big  move  may  be  in  the  making.    
The  tringle  is  almost  perfectly  symmetrical  and  tightening  up  as  
the  pattern  progresses  but  is  nether  point  up  or  down.
A  bearish pattern  that  follows  a  price  drop  and  forms  a  right  
triangle  with  the  top  of  the  tringle  wedging  down  as  the  pattern  
progresses.
• What  is  the  general  trend?
• Where  is  the  most  recent  top  or  bottom?
• Where  are  we  relative  to  that?
• Are  we  forming  a  new  trend?
• Where  are  the  support  &  resistance  zones?
• Do  you  see  a  pattern  or  base?
• Crosscheck  w/  other  indicators
 Section  1:  Technical  Analysis  Basics
What  it  is  &  isn’t Charting  Basics Tools  &  Software

Section  2:  Patterns  &  Trends

Bullish  Patterns Bearish Patterns Bases  &  Breakouts

Section  3:  Technical  Indicators

Essential  Indicators Advanced  Indicators

Section  4:  Automating  the  Process

Step  away  from  the  screen! Alerts  &  Limit  Buys
• Technical  indicators  are  always  secondary  to  chart  patterns  and  
bases  and  should  be  used  as  a  way  to  confirm trends  and  setups.
• Helpful  for  getting  in  a  little  early,  but  high  risk  if  you  trade  using  
only indicators.
• Keep  it  to  a  minimum.

Volume Moving  Averages

MACD RSI Fibonacci

Volume  is  very  often  displayed  on  charts  and  is  an  essential  
indicator  when  confirming  a  breakout  as  well  as  for  identifying  
tops  &  bottoms.
• Moving  averages  tend  to  form  support  &  resistance  zones.
• Look  at  the  10,  20,30  &  50  MA’s    
• For  fast  moving  assets  such  as  currencies,  I  use  EMA  (exponential  moving  
averages)  over  SMA  (simple  moving  average).  Specifically,  my  favorites  are  
the  10  EMA  &  30  EMA.
• The  Moving  Average  Convergence/Divergence  oscillator  (MACD)  is  one  of  
the  simplest  and  most  effective  momentum indicators  available.
• Takes  the  difference  between  two  trend  following  moving  averages  and  
plots  them  on  a  histogram.  12,  26  and  9 EMA’s  are  the  typical  setting  used  
with  the  MACD,  with  9  being  the  signal  line.
• The  Relative  Strength  Index  (RSI)  is  a  momentum oscillator  that  measures  
the  speed  and  change  of  price  movements.
• RSI  oscillates  between  zero  and  100
• RSI  is  considered  overbought when  above  70 and  oversold when  below  30.
• I  like  to  use  RSI  to  spot  trend  changes &  divergences.

overbought

oversold
Divergence
• RSI  charts  create  support  &  resistance  zones
• In  bull  trends,  the  RSI  rarely  falls  below  40
• In  bear  trends,  the  RSI  struggles  to  get  above  60
• Key  ratios  work  for  retracements  to  the  downside  as  well  as  bounces.
• 23.6%,  38.2%,  50%,  61.8%  and  78.6%
• The  most  popular  Fibonacci  Retracements  are  61.8%  and  38.2%.  
• These  levels  alert  us  to  a  potential  trend  reversal  or  identify  possible  
resistance  &  support  areas.

24

38
100 50
62
78
 Section  1:  Technical  Analysis  Basics
What  it  is  &  isn’t Charting  Basics Tools  &  Software

Section  2:  Patterns  &  Trends

Bullish  Patterns Bearish Patterns Bases  &  Breakouts

Section  3:  Technical  Indicators

Essential  Indicators Advanced  Indicators

Section  4:  Automating  the  Process

Step  away  from  the  screen! Alerts  &  Limit  Buys
Summary  of  the  process
• First,  understand  the  direction  of  the  trend  in  place.
• Next,  spot  the  major  support  and  resistance  areas.
• Understand  what  pattern  or  patterns  may  be  forming.
• Look  for  potential  support  and  resistance  areas  using  moving  averages
• Use  Volume  and  the  MACD,  RSI  or  Fibonacci  indicators  to  confirm  what  
you’re  seeing.
• Identify  the  pivot  point  (breakout  or  breakdown)  and  plan  your  trade.
• Plan  your  trade  – what  are  your  buy  and  sell  points?
• Scale  in  and  out  of  positions.    I  do  two  buys;    50/50  ,  60/40  ,  70/30
• Have  a  stop  loss  price  or  %  in  mind  in  case  you’re  wrong.
• Automate  your  Buys  &  Sells    or
• Put  alerts  in  place  to  notify  you  of  breakouts  or  big  price  action.
• Practice  with  a  mock  portfolio  or  paper  trading.

Remember,  technical  analysis  is  a  skill!

• Email  or  SMS  with  TradingView or  Coinigy
• Set  up  watch  lists  with  alarms
• Good  for  automating  some  small  buying  and  selling
• Not  recommended  for  core  holdings
• Can  easily  get  shaken  out  of  a  position
• Should  only  be  used  occasionally  and  temporarily
• Step  away  from  the  screen!
• Don’t  check  prices  every  5  minutes
• Set  up  a  routine  to  do  your  scans  and  go  though  the  watchlist.

• My  routine  (daily  or  weekly)

• I  check  the  big  ones  – BTC,  ETH,  XRP,  etc.
• I  see  what  my  other  positions  are  doing
• I’ll  review  my  watch  list  –a  quick  look  at  charts
• Look  for  opportunities,  set  ups,  recent  big  breakouts
• In  depth  technical  analysis  on  a  few  charts  – ones  I  want  to  buy