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Best indicators for cryptocurrency

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Best indicators for cryptocurrency

As you all know that we cannot predict in which direction the price of coins are going so that’s why it is really important to take help from indicators. These indicators are the tools which are joined with some technical analysis which may help the traders in the prediction of cryptocurrencies prices more effectively. Technical analysis is based on historical data for providing mathematical modes to likely price action. And then these models are converted into indicators. This data is then made on a graph by using formulas and it is presented in the form of traded charts to help the traders for their decision making.

Although these indicators cannot give you 100% accurate indication of your decision. But through their result we can see a price momentum and you may significantly predict the direction of your cryptocurrencies coins. Moreover, these indicators use formulas and graphs to make a clear picture for both the buyers and the sellers. Now without getting much time let’s start discussing some best indicators for cryptocurrencies.

MYC trading indicator

This cryptocurrency indicator is a type of private indicator which is made up of combination of momentum oscillators and trend analysis for determining accurately about the entrance of bullish and bearish phase of cryptocurrency. One of the key feature of this indicator is about its trend line. Trend line allows you to see the upwards and downwards of a price. But as compared to the public indicators such as Bollinger bands and RSI, the trade gives you a recommended entry with exit point so that they may focus on the position size or on the leverage. Now if you are thinking that how you may decide about getting started with this indicator then here’s the procedure.  

  • You can take a start through doing messaging of telegram application. You need to send a message to its admin.
  • You can also join the free crypto signal group then you can know the performance of indicator by getting live trades.

Relative strength index(RSI)

It was made almost 40 years ago. A technical analyst, Welles wilder made it which is now being used to help the clients knowing about the true values of the cryptocurrencies. By using this best cryptocurrency indicator, you can get amazing trading entry points. With the passage of time, this indicator has been proved as a valuable tool to deal with volatile cryptocurrencies. This indicator uses a complex formula for determining the assets. So that the cryptocurrencies may become oversold or overbought. This formula has a value which ranges between 0-100. It can be presented on chart through different wave patterns. So the formula is RSI=100-100/ (1+RS). Now let’s discuss a little about how to use this indicator. It’s really easy to identify in this indicator about the direction of assets price in it. You can see clearly in its chart that either the asset is overbought or not. If it’s in the overbought condition then you can have the chance of getting profit through it. But if it’s showing the position of asset in a shorter tendency then there are the indications of downward price action. Moreover, if you see an exhaustion point in the asset value then it indicates its oversold value and there are chances that it will drive the price in upward direction.

Bollinger bands

John Bollinger created it in 1980s who was a financial analyst. This indicator is used for traders in order to do some technical analysis. The traders work as oscillator measurer which sees that either the market has high or low volatility or if there are any oversold or overbought conditions. The central idea behind this indicator creation is that how prices may vary across an average line or in lower band. These two outer bands react and a market price action is produced. These lines get expanded if the volatility is high and it gets contracted if the volatility is low. Its standard formulas set up a basic centerline in the form of 20 day simple moving averages. There are different formulas for the calculation of top and bottom bands. According to this scenario, almost 85% of these data prices move around lower and upper bands. These bands can be adjusted according to their trading needs and strategies. In this way, if the price of these assets move averagely and it exceeds your upper bands then its safe because the market is in overextended condition. In contrast to this, if the price is touching the upper bands, it may depict an effective resistance. But if the price gets lower band many times then it’s an indication that your price is getting strong support level. This why these indicators are perfect for short term trading and you may analyze the market volatility for predicting the movements that may come in future.

Moving averages

This cryptocurrency indicator is used to smooth the price action over given period. This is a lagging indicator which means that it has previous price action. Moving averages have two types which are exponential moving average and simple moving average. The type of moving average depends solely on the type of trading which you are doing. A short term trader will use shorter moving average trading style. And if you think you are a long term trader then longer average trading is what you need to have for your trading.

Moving average convergence

This is considered as one of the popular indicator for cryptocurrency trading. It is highly simple and it has the ability to provide you with the indicators of string signals of crypto trading. The moving average convergence show a trend which you need to have for seeing short term price momentum or for long term price momentum. In some cases where there is no high and low momentum, you may use it to see what type of trend change is close to market. This indicator is consisted of four components which are MACD line, zero line, signal line and a histogram.

So this is all about some best indicators for cryptocurrencies. We hope that you really like our segment on this topic.

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