Crypto Trading Made Easy: A Beginner’s Guide to Essential Indicators

In this post i will try to explain the Basic Trading indicators of Crypto Trading

MACD
RSI
Bollinger Bands
EMA
VWAP
Volume

MACD

The MACD is a well-known financial indicator that combines moving averages to evaluate momentum and trends. Traders utilize crossovers and divergences for buying and selling signals, but it’s advisable to use it in conjunction with other indicators and risk management strategies.

When the crossing of the MACD line with the Signal line occurs from the bottom up, the trend will be bullish.
When the crossing of the MACD line with the Signal line occurs from top to bottom, the trend will be bearish.

RSI

RSI is an oscillator that reflects the relative strength, between the uptrend and the downtrend.
RSI indicator around level 30: reflects oversold levels RSI indicator around level 70: reflects overbought levels

To draw an uptrend line on the indicator, you need to connect two or three or more peaks of the RSI indicator as HH points appear.
On the other hand, a descending line is drawn by connecting three or more peaks as the points descend.

Bollinger Bands

Bollinger bands are one of the most widely used trading indicators. Is used to compare the changes in the price value of any asset and the relative value of its price over a period of time.

“Squeezing” occurs when the bands taper upward enough that they appear to merge or coincide. If the price converges with the upper band, this indicates a bullish breakout. If the price converges with the lower band, this indicates a bearish breakout.

EMA

The exponential moving average is a weighted moving average that measures a trend, both bullish and bearish. The EMA is used in trading to determine whether the price going up or down. EMA’s are also used as Support and Resistance.

VWAP (Volume-weighted average price)

VWAP is a technical analysis tool that shows the ratio of an asset’s price to its total trade volume. It provides traders and investors with a measure of the average price at which a stock is traded over a given period of time.

Volume

The volume of trade is a measure of the market’s activity and liquidity during a set period of time. Higher trading volumes are considered more positive than lower trading volumes because they mean more liquidity and better order execution.

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Credits / Sources

Credit to : CryptoSoulz ( @SoulzBTC )

Source : https://x.com/SoulzBTC/status/1794312554157932643