As of June 11, 2025, the combination strategies of candlesticks with auxiliary indicators in cryptocurrency exchanges can recommend the following efficient combinations based on different trading styles, combined with market dynamics and technical analysis logic:
1. Trend Following: Candlestick + SAR Deviation + SNT3
Applicable Scenarios: Capturing buy and sell points in trending markets.
Combination Logic: Use candlestick patterns (such as breaking through key resistance/support) as the main signal, supplemented by the SAR deviation indicator (blue/pink arrows indicate trend reversal) and the SNT3 momentum indicator (red-green color change confirms momentum). For example, when the candlestick breaks through the SAR support line and SNT3 changes from red to green, it forms a double confirmation buy signal.
Advantages: Reduces false breakout interference, and the stop-loss position can be dynamically adjusted through SAR (1%-2% or outside the SAR line).
2. Range Market: Candlestick + Bollinger Bands + RSI
Applicable Scenarios: During sideways or shrinking volatility phases.
Combination Logic: Candlesticks combined with the upper and lower bands of the Bollinger Bands (volatility indicator), when the price touches the lower band and RSI is below 30 (oversold), combined with bullish candlestick patterns (such as hammer) to go long; when touching the upper band and RSI is above 70 (overbought), combined with reversal patterns such as evening star to go short.
Advantages: Changes in Bollinger Band width can warn of trend changes, and RSI filters out false breakouts.
3. Breakout Strategy: Candlestick + MACD + Volume
Applicable Scenarios: Confirmation of key resistance/support breakouts.
Combination Logic: When the candlestick breaks through previous highs/lows, it requires MACD golden cross/dead cross and an increase in volume (price increase with volume increase is a healthy signal). For example, when Bitcoin breaks through $3,000, if the MACD histogram continues to decrease in volume and then turns strong, and the volume increases by more than 50% compared to the previous day, it can be considered an effective breakout.
Risk Warning: Volume-less breakouts may be false signals, and need to be verified with on-chain data (such as Glassnode on-chain trading volume).
Operation Suggestions: Prefer to use the TradingView platform to load indicators (such as SAR + Deviation, SNT3) and backtest historical data to optimize parameters; day trading can focus on 1-hour charts, while long-term layouts can refer to daily candlestick combinations (such as red three soldiers, tower bottom). It should be noted that indicators may become ineffective in high-volatility markets, and it is recommended to pair with a 5% position stop-loss and a 1:2 risk-reward ratio.
