I liked candles and charts when I first heard about financial markets decades ago. When I decided to enter crypto, I first looked at charts, I only saw random green and red candles moving up and down. It felt like chaos.
I started learning and discovered indicators ā these are the tools that help traders make sense of this chaos.
š What Are #Indicators?
Trading indicators are mathematical calculations based on price, volume, or both. They turn raw chart data into signals that can guide us in making decisions like:
When to enter a trade š¢When to exit a trade š“Whether the market is trending or ranging šš
For example, I knew
$SOL will be touching ATH soon.
ā” Why Do They Matter?
Crypto is fast, emotional, and often unpredictable. Indicators provide:
Clarity ā They filter noise and show patterns.Confidence ā Instead of guessing, you rely on signals.Discipline ā They help reduce emotional trading.
š ļø Types of Indicators
There are many, but here are the main categories:
Momentum Indicators (e.g., #RSI, Stochastic) ā measure speed & strength of price moves.
Trend Indicators (e.g., Moving Averages, #MACD) ā help identify the direction of the market.
Volatility Indicators (e.g., Bollinger Bands, ATR) ā show how much the price is moving.
Volume Indicators (e.g., OBV) ā confirm whether moves are backed by strong buying/selling.
š Why This Series?
Over the next 30 days, Iāll be writing on different indicators ā starting with the RSI (Relative Strength Index) tomorrow.
This way, We'll learn deeply while sharing insights that can help beginners.
š” Question for You:
Which indicator do you trust the most in your trading ā RSI, MACD, or Bollinger Bands?
Follow me o miss updates. By the way, I am bullish
#swingever #CryptoLearningFun