Author: unhombreinversor

If you are taking your first steps in the world of cryptocurrencies, this guide is your best starting point. It is designed for any beginner to understand when to buy, when to sell, and when to wait. We will teach you to read the market logically, not by gut feelings.

What are technical indicators?

They are visual tools that allow you to anticipate market movements. They help you make smarter decisions and reduce unnecessary risks. They do not guarantee success, but they do make a difference between someone who invests blindly and someone who knows what they are doing.

EMA (Exponential Moving Average)

What is it for?

Shows the direction of the trend, prioritizing the most recent prices.

Clear example:

If the EMA(7) crosses up above the EMA(25), the price may start to rise.

If the EMA(7) crosses down below the EMA(25), it can be a signal of decline.

Conclusion: Use it to detect early changes in direction.

MA (Simple Moving Average)

What is it for?

Gives an overview of where the price is going on average.

Clear example:

If the price is above the MA(10), and this is pointing upwards, there is an upward trend.

If the price is below and the MA(10) is falling, do not enter.

Conclusion: Excellent for filtering false signals.

RSI (Relative Strength Index)

What is it for?

Measures the strength of the price. Alerts you if it’s 'very expensive' or 'very cheap'.

Clear example:

RSI below 30 and rising: good buying zone.

RSI above 70: better to wait.

StochRSI / MASTOCHRSI

What is it for?

They give more sensitive signals than traditional RSI. They detect turning points.

Clear example:

Rising from below 20: potential bounce.

Drops from above 80: possible correction.

KDJ

What is it for?

Detects moments when the price changes momentum.

Clear example:

K crosses up to D = buy signal.

J drops sharply = alert of decline.

OBV (On-Balance Volume)

What is it for?

It tells you if the volume supports the price. Basic to avoid traps.

Clear example:

Price rises and OBV also rises = the big players are buying.

Price rises and OBV falls = alert of manipulation.

Williams %R (W%R)

What is it for?

Shows if the price is at its lowest or highest point of a range.

Clear example:

W%R rises from -80: possible bounce.

W%R drops from -20: possible decline.

MACD

What is it for?

Anticipates trend changes before they become obvious.

Clear example:

DIF crosses up above DEA = buy signal.

DIF crosses down below DEA = possible sale or exit.

Simple summary: when to act

Final advice: strategy + patience

It's not about looking at 20 indicators, but rather choosing 2 or 3 and mastering them. Combine them with basic risk management, and you will be light years ahead of 90% of beginners.

If you want more educational articles to know how to operate better in financial markets, such as anticipating trends, price changes, and anticipating the direction of the market, follow me and like this article.

Every Saturday, an educational article for all of you.

Remember: no analysis is infallible, but it’s always better to be prepared and knowledgeable than to be reading other articles or publications saying it will skyrocket or disappear, just to induce euphoria or fear in users who invest.