USING METHODS OF TECHNICAL ANALYSIS TO FORECAST THE CRYPTOCURRENCY MARKET

Abstract

The rapid development of digital currencies over the last decade is one of the most controversial and ambiguous innovations in the modern world economy. Significant fluctuations in cryptocurrency exchange rates and their high volatility, as well as the lack of legal regulation of their transactions in most countries have led to significant risks associated with investing in cryptocurrencies. Therefore, there are many discussions about their role and place in the modern economy. In this regard, the development of appropriate methods and models for forecasting prices for cryptographic products are so relevant for investors, traders, analysts and in general for the construction of scientific concepts and theories. This article is devoted to solving the problem of predicting the price of cryptocurrencies using technical analysis methods. The purpose of this article is to identify the possibilities of using various computer indicators of technical analysis to study and forecast the cryptocurrency market and develop recommendations for their use. Computer indicators are actively used by professional traders in the financial markets, including the cryptocurrency market. These tools combine well with popular strategies and analytics, provide additional data and help create a clearer picture of the market. Indicators of technical analysis are the result of mathematical processing of statistical data on price dynamics. In market practice, there are two types of basic technical indicators: trend (lagging) and oscillators (outpacing). In turn, trend indicators determine the trend by smoothing price fluctuations, which allow you to navigate the market with a pronounced trend. As for the lagging behind, they are represented in most cases by average sliding. The methods of technical analysis considered in the article allow to determine the main trends in the cryptocurrency market and to develop forecasts of its further dynamics.