Instead of just relying on intuition, indicators provide an objective framework to evaluate market behavior... This can significantly enhance profits and minimize risks in the highly volatile and unpredictable cryptocurrency market.
Common indicator groups:
Trend indicators: Such as Moving Average (MA), Ichimoku Cloud – determine the main direction of the market, assist in detecting reversals.
Momentum indicators: Such as RSI, MACD – measure the strength and speed of price movements, identify overbought/oversold areas.
Volume indicators: Such as OBV, Volume – assess the strength of the trend based on trading volume.
💭 Are indicators the 'holy grail'?
Indicators are just supportive tools, not a guarantee of a 100% win. Indicators can give false signals; if they were always right, the exchanges would be crying, and so would the market makers =)) therefore, one should not rely on a single indicator but rather combine multiple indicators to confirm signals.
💵 Is it possible to trade without indicators?
There are still successful traders using price action methods or fundamental analysis without relying on technical indicators.
However, for the majority, especially newcomers, technical indicators are essential tools to support analysis, reduce risks, and increase the probability of success.
💡 What technical indicators do people usually use? Or what indicators do people want to know about? Comment so the team can create a post!
