Introduction to Market Analysis
There are three 'pillars' to market analysis:-
a) Fundamental Analysis (FA)
b) Technical Analysis (TA)
C) Sentiment Analysis (SA)
In the Cryptosphere, its usually the only the most professional traders (Hedge Funds / Investment Managers) that perform full Market analysis.
Retail traders almost never perform full market analysis. This results in risky trades (hidden risks) and poor returns.
Wherever appropriate, CyberTrade financial instruments incorporate all three market analysis pillars, to promote professional quality trading.
Full Market Analysis = Full Understanding
Market Analysis = Fundamental Analysis+ Technical Analysis (TA)+ Sentiment Analysis. All of that comes as standard with CyberTrade.
Fundamental Analysis.
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'Bitcoin has no intrinsic value' is an often used phrase. --This is entirely wrong. In actual fact, crypto computer networks, like the Bitcoin network, do have strong 'network effects' which do provide intrinsic value.
A network effect is something that generates more value as more users are added to the networked community..
Think in terms of a mobile phone network, or the Internet to realise that the intrinsic value is the value of the networked community. The larger and more dynamic the community, the more valuable the network.
At CyberTrade, crypto network monitoring (number of addresses, transactions volume etc), provides the required fundamental analysis.
Technical Analysis.
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The design of CyberTrade financial instruments incorporates a Technical Analysis (TA) engine that identifies areas of interest for buying and selling.
The TA engine uses the full range of TA capabilities, including Concepts, Charts, Patterns and Indicators.
Tools used include; common chart patterns (Wedges, flags, triangles and pennants) and Elliot Waves / Fibonacci extensions to identify potential price targets.
Sentiment Analysis
Sentiment is used to assess the overall market mood.
The design of CyberTrade financial instruments includes a sentiment engine which monitors what people are saying, on social networks, about aspects of cryptocurrency.
The job of the sentiment engine is to measure public sentiment and intelligently interpret changes in public sentiment in terms of possible/likely price movement.
Market Analysis.
CyberTrade believes in a holistic Market Analysis, incorporating the 'three pillars', namely Fundamental Analysis, Technical Analysis and Sentiment Analysis..
The holistic approach provides a great view of the 'full picture'.
The full picture view enables CyberTrade to understand the current trading environment, within the overall market context.
From a practical point of view, the full picture enables high quality trading across short, medium and long timescales.
