Introduction to Market Analysis
In trading, 'Market Analysis' refers to the 'Holistic' approach.
There are three 'pillars' to market analysis:-
a) Fundamental Analysis (FA)
b) Technical Analysis (TA)
C) Sentiment Analysis (SA)
Market analysis has potential to direct the Decentia search engine to new areas of volatility, for subsequent analysis and trading.
Full Market Analysis = Full Understanding
Market Analysis = Fundamental Analysis+ Technical Analysis (TA)+ Sentiment Analysis. All of that helps build an overall sittual awareness.
'Ethereum has no intrinsic value' is an often used phrase. --This is entirely wrong. In actual fact, crypto computer networks, like the Ethereum 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, basic network monitoring (number of addresses, transactions volume etc), is performed to warn of changes in market direction and of specific spikes and crashes. This helps to reduce risk and also to take advantages of specific opportunities.
Technical analysis (TA) is a body of past market data (mainly price and volume) and knowledge, useful for forecasting the future direction of prices.
Due to CyberTrade's emphasis on De-Fi / Arbitrage Trading , and avoidance of 'price prediction', trading, CyberTrade has not developed a 'full-suite' TA engine.
However, the CyberTrade / Decentia platform does monitor 'recent-past' data (Minutes, Hours, Days) , to identify areas of volatility useful for arbitrage trading.
Sentiment is based upon what people are saying, on social networks, about aspects of Blockchains, Exchanges and CryptoCurrencies,
Sentiment is used to assess the overall market mood and is often a 'lead indicator' of changes in market direction.
The CyberTrade Decentia platform, incorporates sentiment analysis monitoring, (regarding Blockchains, Exchanges and Cryptocurrencies) to guide the volatility search engine to specific 'liquidity pools'.
CyberTrade does believe in a 'holistic' Market Analysis, incorporating each of the 'three pillars'.
The holistic approach provides the 'fuller picture'.
Having the fuller picture enables CyberTrade to understand the current trading environment to avoid risk and and become pro-active in looking for opportunity.