Technical analysis (TA) operates as a tool set of strategies, methodologies, and analyses for market trading. Unlike fundamental analysis (FA) which studies financial and economic factors or relationships, TA studies the historical price evolution, patterns, or movements that rely on past market data.
Technical analysis requires two assumptions:
- Price moves in trends, where current trends can be influenced by the past
- Price evolution can be forecast using past prices (contradicting the random-walk hypothesis).
We recommend that you have some prior knowledge and understanding of technical analysis before using the Polytrends Algo.
Polytrends in action
In theory, a trader could have used Polytrends to track and trade the largest crash in Bitcoin history – to date.
And the result….