The combination of Moving Averages (MA), Volume, MACD, and RSI can significantly increase the accuracy of analyses and avoid market traps.
📊 Technical Analysis Strategy in the Crypto Market
🔹 Moving Averages (MA): 7, 25, 99 periods
- Crossovers:
- MM7 crossing below MM25 and MM99 → Strong downward
- MM7 crossing below MM25, but above MM99 → Weak downward
- MM7, MM25, and MM99 nearby, with no clear trend → Low lateral
- MM7 crossing above MM25, but still below MM99 → High lateral
- MM7 crossing above MM25 and approaching MM99 → Weak upward
- MM7 crossing above MM25 and MM99 → Strong upward
- Resistance and Support:
- If the price respects MM99 as support, it may indicate an upward trend.
- If MM99 acts as resistance, it may indicate selling pressure and downward movement.
📈 MACD (12, 26) to identify upward and downward trends
- MACD above the signal line → Indicates buying strength and potential continuation of the upward trend.
- MACD below the signal line → Signal of downward trend.
- Increasing histogram → Confirmation of upward trend, greater momentum.
- Decreasing histogram → Loss of strength in the trend, possible reversal.
🔎 RSI (6 and 24) for overbought and oversold conditions
- RSI6 below 30 → Oversold market, possible reversal to upward.
- RSI6 above 70 → Overbought market, possible correction to downward.
- RSI24 to confirm trend → If RSI6 signals overbought, but RSI24 does not yet, the upward trend may continue.
⚡ Combination of MA + Volume + MACD + RSI
- Trend confirmation:
- Crossover of MAs with support/resistance + favorable MACD + high Volume → Best time to enter.
- RSI in extreme zone (oversold/overbought) → Additional validation before trading.
- Avoiding traps:
- Divergent signals between Volume and MACD may indicate false breakouts.
- RSI can help avoid purchases in trend exhaustion regions.
This strategy allows for precise identification of entry and exit moments, maximizing results and avoiding market traps. 🚀📊
