**What are Trend Indicators?**
Trend indicators are tools that help us know if the price of a cryptocurrency is rising, falling, or moving sideways (without a clear direction). They are essential for identifying entry and exit opportunities in the market.
Most commonly used Trend Indicators:
1. MA (Simple Moving Average)
#MA Averages the closing price over a specific period (for example, 10 or 50 candles).
Smooths out price movement to see the overall direction.
WHAT DOES MA INDICATE?
If the price is above the MA, possible bullish trend.
#alcista If it is below, possible bearish trend.
#bajista 2. EMA (Exponential Moving Average)
#EMA. Similar to the MA, but gives more weight to recent prices, so it reacts faster.
Very commonly used in scalping and short trading strategies.
Crosses between EMAs (for example, EMA 7 and EMA 25) provide entry or exit signals.
3. MACD (Moving Average Convergence/Divergence).
#MACD Uses two EMAs to measure the momentum of a trend.
Composed of:
MACD Line (fast EMA - slow EMA)
Signal Line (EMA of the MACD line)
Histogram (the difference between both lines)
WHAT IT INDICATES
Crossing up = possible buy
Crossing down = possible sell
4. Parabolic SAR (Stop And Reverse)
Places points above or below the price to indicate trend changes.
- Points below the price = bullish trend.
- Points above the price = bearish trend.
Ideal for following a trend and exiting when it reverses.
Why use trend indicators?
They help confirm entries and avoid trading against the trend.
They allow for a more logical and less emotional strategy.
Combined with volume or RSI, they can be very powerful.