Ethereum Technical Analysis: Story of two results
Technical analysis scripts developer, which uses libraries such as GO, worked with various cryptocurrencies, including Ethereum. Recently, I analyzed the price movement of Ethereum using the RSI (relative power index), Stoch RSI (RSI -stopic oscillator), boler, and moving modia (MacD). Although my script has produced precise results for some time, I noticed a significant difference between its predictions and live data from Binance.
In this article, I will condemn the differences between my analysis and the true performance of Ethereum in exchange of bin. It is imperative to understand that technical analysis is not precise science and there are several factors that influence market behavior. However, by studying the production of my manuscript against historical information, we can recognize any problems.
RSI: HAUSSIER -pointer
My manuscript uses RSI, which measures the extent of prices over time. I attached the threshold to 70, indicating over or over or over. As expected, my results show that prices are often in the “Surbough” state, leading to the wrong signals.
Stoch RSI: oscillator
Stoch RSI is a pace oscillator that calculates 14 episodes between the current price and its average. My manuscript shows that Stoch RSI usually cultivates about 70-80%, which I marked as “excess”. Although this indicates potential purchasing pressure, it is necessary to take into account other market factors.
Bold Band: Trading fork
My boler ribbon is a technical indicator that pulls the upper and lower lanes in the trading area. This manuscript shows that prices often remain in these areas that I am marked with “support” or “resistance”. Although it suggests that prices are usually stable, it is important to monitor other possible apertures indicators.
MacD: The difference between the average convergence of mobile
My manuscript uses the MacD line as an average of 26 episodes for the mobile phone. I set the signal line to -12 and the intersections above this level. As expected, my results show that prices often develop in Tandem with the MacD line.
However, the signal line is usually greater than zero, indicating high purchasing pressure. Here things become interesting.
aperture
Unlike Binance’s Real Time Time, indicating a different image:
- Prices are not systematically exaggerated or happened.
- Stoch RSI does not at the top of 70 – 80% as often as my manuscript predict it.
- The mud is often shorter than expected, indicating more volatility.
- MACD line is not systematically greater than zero; In fact, it is often less than zero.
conclusion
Although technical analysis can be an effective tool for investors, its accuracy has restrictions. In this case, my manuscript seems to make false predictions because of the natural nature of Binance exchange information. There are several factors that affect this opening:
* Lack of historical contexts
: My manuscript does not explain broader market trends or seasonal models.
* Limited trading quantities : The actual trading of the Binance area may be different from simulated data.
* Noise and sampling frequency : Different time intervals (for example, 1 minute against 5 minutes) can cause noisy or inconsistent signals.
As a developer, it is necessary to strengthen the technical analysis by using real information to ensure accuracy. If you only rely on such simulations, be aware of the possible boundaries and take them into account when making the negotiation decisions.
Other Recommendations
- Use more detailed indicators : Explore other technical indicators that are well established in the cryptocurrency market.
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