Introduction to Market Analysis
In trading, 'Market Analysis' refers to the 'Holistic' approach.
There are three 'pillars' to market analysis:-
a) Fundamental Analysis (FA)
b) Technical Analysis (TA)
C) Sentiment Analysis (SA)
Market analysis helps CyberTrade to manage the business in the face of dramatic changes in market direction and trading volume.
Full Market Analysis = Full Understanding
Market Analysis = Fundamental Analysis+ Technical Analysis (TA)+ Sentiment Analysis. All of that helps build an overall situation awareness.
Fundamental Analysis.
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'Ethereum has no intrinsic value' is an often used phrase. --This is entirely wrong. In actual fact, crypto computer networks, (like the Ethereum network), do have strong 'network effects' which do provide intrinsic value.
A 'network effect 'is something that generates more value as more users are added to the networked community.
Think in terms of a mobile phone network, social networking, the Internet, or the blockchain itself, to realise that the intrinsic value is the value of the networked community. The larger and more dynamic the community, the more valuable the network. Think Facebook, Instagram, X etc. Similarly, the Ethereum network is valuable because it is where most of the Decentralised Finance (DeFI - trading, lending, Staking, NFTs etc) takes place.
At CyberTrade, basic network monitoring (number of addresses, transactions volume etc), is performed to warn of changes in market volume and direction to gauge upcoming busy and quiet periods to help manage the business. Monitoring of market volatility is used to change appropriate trading variables.
Technical Analysis.
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Technical analysis (TA) is a body of past market data (mainly price and volume) and knowledge, useful for forecasting the future direction of prices.
Due to CyberTrade's emphasis on De-Fi / Arbitrage Trading , and avoidance of 'price prediction', trading, CyberTrade has not developed a 'full-suite' TA engine.
However, the CyberTrade / Decentia platform does monitor 'recent-past' data (Minutes, Hours, Days) , to identify cryptocurrency pairs for profitable arbitrage trading.
Sentiment Analysis
Sentiment is based upon what people are saying, on social networks, about aspects of Blockchains, Exchanges and CryptoCurrencies,
Sentiment is used to assess the overall market mood and is often a 'lead indicator' of changes in market direction.
The CyberTrade Decentia platform design incorporates sentiment analysis monitoring, (regarding Blockchains, Exchanges and Cryptocurrencies) to signal likely changes of market direction and help manage the business.
Market Analysis.
CyberTrade does believe in a 'holistic' Market Analysis, incorporating each of the 'three pillars'.
The holistic approach provides the 'fuller picture'.
Having the fuller picture enables CyberTrade to understand the current trading environment to help the business avoid risk and adjust the platform variables to cope with busy / quiet / indifferent trading periods.
