Factom Technical Analysis March 2018

Welcome to the Technical Analysis Summary for Factom — 11th March 2018.

This report investigates 4 popular technical analysis indicators:

Moving Average Convergence Divergence

Relative Strength Index

Aroon Indicator

On-Balance Volume

The above indicators are used in technical analysis as tools for forecasting the direction of prices through the study of past market data, primarily price and volume.

They are based on the idea that the market for buying and selling digital currencies is not efficient and historic prices can be used to predict future price movements, and using these tools can be advantageous to investors and traders.

Moving Average Convergence Divergence (MACD)

The graph below shows the MACD applied to the price of Factom using daily price data for the last 40 days.

As shown in the chart above, the MACD is currently below the signal line, implying a bearish signal, indicating that it may be an optimal time to sell.

According to the MACD, a bearish signal suggests that the price of the asset is likely to experience downward momentum.

Relative Strength Index (RSI)

The graph below shows the RSI applied to the price of Steem based on daily price data for the last 40 days.

Since the RSI is currently between 30 and 70, this would indicate that Factom is neither overbought or oversold and that no material price change is expected.

Aroon Indicator

The graph below shows the Aroon Indicator using the price of Factom over the last 40 days.

The Aroon indicators move above and below the centerline (50) and are bound between 0 and 100. These three levels can be explained as follows: When the Aroon-Up is above 50 and the Aroon-Down is below 50, the bulls have an edge. This indicates a greater propensity for new x-day highs than lows. The opposite is true for a downtrend. The bears have an edge when Aroon-Up is below 50 and Aroon-Down is above 50.

In the graph below, the Aroon-Up is above 50 and the Aroon-Down is below 50 indicating neither bullish or bearish signal.