“Listening to MACD, RSI, EMA makes you dizzy? No worries, after reading this article you will want to open the chart and trade right away.”
A chart without indicators is like a backpacker without a knife – you can see the direction, but you don't know when to turn or avoid traps. Candles show the price, but indicators reveal whether the market is strong or weak, whether it's accelerating or about to reverse.
The following 3 indicators are simple – easy to understand – easy to use, extremely useful for beginners. No need to be good at math, no need to learn to draw charts – just need to be observant.
☘️ I. RSI – When the Market Starts to Get “Tired”
RSI = Relative Strength Index
→ Temporarily translated: An index measuring market endurance – overloaded or not.
• Score range: from 0 to 100
• >70: Overbought → May be about to correct
• <30: Oversold → May be preparing to bounce back
How to play:
• RSI 80? Don't FOMO, because people are about to unload their positions.
• RSI 25? You can start gradually picking up – price is being sold off heavily.
☘️ II. MACD – Measuring the Market Rhythm: Is It “Accelerating” or “Braking”?
MACD = Moving Average Convergence Divergence
→ It sounds long-winded, but it's very easy to use. It helps identify when to enter/exit according to the trend.
• Consists of 2 lines: MACD Line & Signal Line
• MACD crosses above Signal → Bullish signal
• MACD crosses down Signal → Bearish signal
• Includes a histogram (bars) to see strength – weakness.
Used when:
• Want to know if the trend is strong or weak
• Combine with RSI to increase win rate
☘️ III. EMA – A Simple Average But “Powerful”
EMA = Exponential Moving Average
→ The average line reacts quickly – not as slow as SMA.
• Commonly used: EMA 9, 20, 50, 200
• Price is above EMA → Uptrend
• Price is below EMA → Downtrend
Practical application:
• EMA20 crosses above EMA50 → Clear buy signal
• EMA50 crosses below EMA200 → Strong sell warning, trend may break
☘️ IV. Use Combo – Trade Like a Pro
Situation 1:
• RSI is at 78
• MACD is about to cross down
• Price has been above EMA20 for a long time, just touched resistance
→ This is a point to consider taking profit or shorting lightly
Situation 2:
• RSI is at 25
• MACD just crossed up
• Price bounces from support + stays above EMA9
→ You can enter a light position, test the uptrend
☘️ V. The Pitfalls When Using Indicators – Beware of Burnout
Equipped and Ready to Trade
✓ Know RSI to identify overbought/oversold zones
✓ Use MACD to determine if the trend is real or fake
✓ Hold EMA to know where the price is relative to the trend
✓ Know how to combine indicators for more accurate entries
🍀 In summary:
Indicators are not magic. But used at the right time, in the right way – they are weapons. Using them incorrectly is like trying to cut your own leg with a knife. Learn to understand – not to show off. Because in the end, the chart is only beautiful when your account is still in the green.
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