Education Binance

What is a trading strategy? A trading strategy is simply a plan you follow when executing trades. There’s no single correct approach to trading, so each strategy will largely dep...

The Moving Average Convergence Divergence (MACD) is an oscillator-type indicator that is widely used by traders for technical analysis (TA). MACD is a trend-following tool that uti...

The Ichimoku Cloud is a method for technical analysis that combines multiple indicators in a single chart. It is used on candlestick charts as a trading tool that provides insights...

What is Stochastic RSI? Stochastic RSI, or simply StochRSI, is a technical analysis indicator used to determine whether an asset is overbought or oversold, as well as to identify ...

The Moving Average Convergence Divergence (MACD) is an oscillator-type indicator that is widely used by traders for technical analysis (TA). MACD is a trend-following tool that utilizes moving averages to determine the momentum of a stock, cryptocurrency, or another tradeable asset. Developed by Gerald Appel in the late 1970s, the Moving Average Convergence Divergence indicator tracks pricing events that have already occurred and, thus, falls into the category of lagging indicators (which provide signals based on past price action or data). The MACD may be useful for measuring market momentum and possible price trends and is utilized by many traders to spot potential entry and exit points. Before diving into the mechanisms of MACD, it is important to understand the concept of moving averages. A moving average (MA) is simply a line that represents the average value of previous data during a predefined period. In the context of financial markets, moving averages are among the most popular indicators for technical analysis (TA) and they can be divided into two different types: simple moving averages (SMAs) and exponential moving averages (EMAs). While the SMAs weight all data inputs equally, EMAs assign more importance to the most recent data values (newer price points).

Introduction Without the right trading tools, you cant conduct effective technical analysis. A strong trading strategy will help you avoid common mistakes, improve your risk man...

Do you think you have great ideas about the market but don’t know how to put them to the test without risking your funds? Learning how to backtest trade ideas is the bread and butter of a good systematic trader. The underlying premise of backtesting is that what worked in the past may work in the future. But how do you go about doing this yourself? And how should you evaluate the results? Let’s go through a simple backtesting process.

Wondering what cryptocurrencies to buy, and when? When you research crypto assets, you may run into a special type of price graph called a candlestick chart. So it’s good to take a little time to learn how these work. Similar to more familiar line and bar graphs, candlesticks show time across the horizontal axis, and price data on the vertical axis. But unlike simpler graphs, candlesticks have more information. In one glance, you can see the highest and lowest price that an asset hit during a given timeframe — as well as its opening and closing prices.

Margin trading is a method of trading assets using funds provided by a third party. When compared to regular trading accounts, margin accounts allow traders to access greater sums ...

Breaking news, TA is hard! If youve been trading for at least a little while, youll know that making mistakes is part of the game. In fact, losses are impossible to avoid for any t...

What is Elliott Wave? The Elliott Wave refers to a theory (or principle) that investors and traders may adopt in technical analysis. The principle is based on the idea that finan...

What are the Bollinger Bands? The Bollinger Bands (BB) were created in the early 1980s by financial analyst and trader John Bollinger. They are broadly used as an instrument for ...