#TradingPairs101
Technical indicators play a crucial role in analyzing trading pairs. The 50-day and 200-day moving averages help identify the overall trend, while the Relative Strength Index (RSI) signals whether a pair is overbought or oversold. The MACD reveals potential buy or sell opportunities through momentum crossovers, and trading volume confirms the strength behind price moves. Chart patterns like head and shoulders, triangles, and double tops/bottoms can hint at upcoming reversals or continuations. Fibonacci retracement levels highlight key support and resistance zones.
Many traders analyze the BTC/ETH pair to decide when to rotate capital between Bitcoin and Ethereum or to hedge their positions—especially when Ethereum starts gaining strength against Bitcoin.