Here are the best and most popular indicators used in crypto trading, especially for technical analysis:
1. RSI (Relative Strength Index)
What it does: Shows whether a coin is overbought or oversold.
How to use it:
RSI > 70 = Overbought (price might go down)
RSI < 30 = Oversold (price might go up)
Best for: Spotting potential reversal points (entry and exit signals).
2. MACD (Moving Average Convergence Divergence)
What it does: Measures trend strength and direction.
How to use it:
When the MACD line crosses above the signal line = Buy signal
When it crosses below = Sell signal
Best for: Following the trend and catching momentum shifts.
3. EMA (Exponential Moving Average)
What it does: Smoothens price data to show the trend.
How to use it:
Short-term EMA crossing above long-term EMA = Bullish
Short-term EMA crossing below = Bearish
Common setup: 50 EMA and 200 EMA crossover.
Bonus: Volume Indicator
Why it's useful: Confirms the strength of a move. A price move with high volume = stronger signal.
If you're a beginner, start with RSI + MACD, then explore EMA and volume to build stronger trading strategies. Want a visual chart example or setup guide?
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