We all know Coincheck offers a nice trading view with some cool features for technical analysis that everyone can use, but we wanted to do something special for our readers in order to give you that extra leverage when trading on our platform! That’s why, today, we’ll be showing you some great feature that you can find at www.cryptocompare.com
CryptoCompare has many tools that can be useful for traders! Real-Time Streaming Information, Reviews, Guides, on Exchanges, Mining equipment, wallets, etc. They have tools like calculators, quizzes, a neat crypto portfolio and a great forum community! Cryptocompare is well-known for all of these features, but their Trading Tools may sometimes go unnoticed by some users and that’s what we want to show you today!
In order to do what we’re going to do you don’t need an account, but creating one will give you access to many features such using as the Portfolio and posting on the Forums. Head over to Cryptocompare and choose your favorite currency. We are going to use Ethereum and Bitcoin in this guide. Once you’ve chosen your favorite Cryptocoin you can match it any other fiat or cryptocurrency it trades with. Go to the CHARTS tab and change the Chart type to your liking on the left top corner.
You should see something like this:
As you see, CryptoCompare has an array of tools to help you with technical analysis.
You can see charts from up to 3 years:
(The Blue bars above the time period of the chart is the Volume)
You can draw on the charts to find the support and resistance:
Resistance and Support are the prices a security seldom moves above (resistance) or below (support). Sometimes, resistance can become support and vice-versa, as seen in the figure above.
You can make notes and save your charts:
And finally, our favorite tool on cryptocompare, that we have not seen anywhere else. We find this tool to be extremely useful in trading CryptoCurrecies, but as all trading tools and tricks this is na indicator that should be used as a part of your toolkit, and not by itself. We are talking about the Social Indicators:
As long as the Cryptocurrency you’re trading in has a facebook, twitter or reddit you can use this feature to get some extra guidance while day trading
We are looking at Bitcoin’s 1-month time period time chart matched with Reddit Posts/Hour.
We can see (marked with a red circle) a clear correlation between the recent price raise and reddit post/hours and the most interesting thing is the fact that reddit post count rose before Bitcoin’s price did. In this same chart, we can also see that the reddit posts not always follow the same trend as the price, and that’s why this tool should be used to support other elements of your analysis.
So, make sure you use your new tools wisely and remember not to invest more than you can afford to lose!