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Published in · 5 min read · Feb 26, 2019
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If you aiming to make money or are at least bothered by the price changes that happen to your favorite coin then you deserve to know what is a Technical crypto screener.
Let's break it down Technical — Crypto — Screener. Each of these words has meaning and together they are a definition of a tool.
First technical, in regard to our discussion, technically refers to the technical analysis of the price of crypto. These can be divided into 2 types of technical analysis.
1 — Price action technical analysis — These are more based on the how, when and what next thinking type of analysis of the price. The user depends on the basic candlestick markets to understand the mood of the market. As to how they do it, it takes practice. It's not strange to have two people assume different results for the same chart as the interpretation is subjected to an individual.
These are also known as leading indicators or trend trading as they focus on predicting the next price movement.
This type of analysis includes price action, Elliott wave theory, Break out, Candle pattern, Fibonacci and many more.
For more do read,
2 — Indicator based technical analysis — These are mostly a formulate type of analysis. These have formula and calculation which have a clear interpretation. No two people will strongly disagree that an SMA 20 crossover SMA 50 is not bullish. They may argue for the sake of arguing but that that.
These are also known as lagging indicators as these use the data from the past and generally speaking, can change based on the trend.
These types of analysis include Simple Moving Average (SMA), Exponential Moving Average (EMA), Bollinger band (BB) and many more…..
If you're interested in diving more into what and how of technical indicator then do read the following post by CryptoCred
Crypto in our case is the asset we want to trade like Bitcoin or Ethereum or any other coin.
This is the thing that the screener is supposed to find for you. You will understand it a bit later down in detail.
The screener can be understood as a scanner or finder or to the point search engine.
A screener needs a query with a condition. Whats those you ask below is an example of a query with each condition in “ ”
I want a “Red” “shirt” “size 38” “short sleeve” “made in Germany” with “100% cotton” from “shop which is 50 miles around me”
Imagine Googling and entering a sentence like above and getting the result of shirt fulfilling all those exact “requirements”. Highly unlikely, that is what I meant by to the point search engine.
There is a reason you can't get that info cause there is no such ready-made database with google.
Phewwww… now the following is we are going to see the entire “Technical crypto screener” as a whole.
Each trader is looking for a certain condition to be full filled to trade an asset. For example, some might trade crypto if-
- RSI is rising from 35 to 40.
- MACD cross over happens.
- Price cross Bollinger band lower line.
- Volume rose 5 times the average 20-day volume.
- Price changed X% in Y minutes
- SMA is started to rise upwards.
All the above are an example of conditions and set up trader look manually. To make this process automated and easy a screener is needed. It does as it reads, it screens.
So the main question does a screener really help a trader! The answer to that is, it depends on you and how you use it.
Screener purpose is to save you time and effort in finding the coin that you're looking for & if you looking for a wrong trade set up, how can you blame the screener. Just like you can't blame google from the item you bought online.
Never the less, the value of a good screener can't be ignored, Every major price change whether it's up or down can be detected early by screening for the right condition to be created.
It can be a sudden increase in volume without much change in price or SMA curve is reversing for a particular coin pair.
Only on binance, we have more than 300 pair so the screener should check all 300 coin 24X7 and alert you when it finds your trade setup your looking for. This is not humanly possible to do manually and that why screener is so useful.
Not all screeners are created equal, the amount of flexibility offered by the screener determines the usefulness to the trader.
To see a further example of how the indicator can help you make money and save you time read the following post
I have previously written about the present option for people if they want to screen crypto to trade,
Tradeplan is a crypto screener tool that plans to build a better, easy to use and flexible for beginner technical screener.
You can connect with me on twitter @shakks and feel free to ask any questions you may have about how a screener can or can't help you.
