Three of the most popular trading indicators: RSI, MACD, and Moving Averages. These are essential tools in technical analysis used by traders to identify entry and exit points in the market.
🔹 1. RSI (Relative Strength Index)
RSI is a momentum indicator that measures the speed and change of price movements.
It ranges from 0 to 100.
How to use:
RSI above 70 = Overbought → price may fall soon
RSI below 30 = Oversold → price may rise soon
Simple Example:
If BNB's RSI is at 75, it may be too high, and a correction might come.
If XRP's RSI is at 25, it could bounce up.
Tip: Best used in ranging (sideways) markets.
🔹 2. MACD (Moving Average Convergence Divergence)
MACD shows the relationship between two moving averages (usually 12 EMA and 26 EMA).
It has two lines: the MACD line and the signal line.
A histogram also shows the distance between these lines.
How to use:
MACD line crosses above signal line = Buy signal
MACD line crosses below signal line = Sell signal
Simple Example:
If ETH MACD crosses upward, it may mean a new uptrend is starting.
Tip: Best in trending markets (either up or down).
🔹 3. Moving Averages (MA)
Moving averages smooth out price data to identify the direction of the trend.
Common types: SMA (Simple), EMA (Exponential)
Popular ones:
50-day MA: Medium-term trend
200-day MA: Long-term trend
How to use:
Price above MA = Uptrend
Price below MA = Downtrend
50 MA crossing above 200 MA = “Golden Cross” (bullish)
50 MA crossing below 200 MA = “Death Cross” (bearish)
Simple Example:
If BTC is above its 200-day EMA, trend is bullish.
Tip: EMA reacts faster than SMA to price changes.
