Given the volatility of the crypto market, it is important to use the right indicators. A good trader should know which indicator to use and when. Here are the top 5 indicators that will help you find better entry and exit points.
1. Relative Strength Index (RSI) – Right time to buy and sell
✅ RSI ranges from 0 to 100.
✅ When it is above 70 the market is overbought (sell signal).
✅ Below 30 the market is oversold (buying signal).
2. Moving Average (MA) – To identify the trend
✅ There are two main types: Simple Moving Average (SMA) and Exponential Moving Average (EMA).
✅ Bullish trend when price is above the Moving Average.
✅ Bearish trend when price is below the Moving Average.
3. Moving Average Convergence Divergence (MACD) – To understand the strength of the trend
✅ MACD has two lines – MACD line and signal line.
✅ When the MACD line crosses the signal line from below, a buy signal.
✅ When the MACD line crosses the signal line from above, a sell signal.
4. Bollinger Bands – To measure market volatility
✅ Bollinger Bands are made up of three lines – Upper Band, Middle Band (SMA), and Lower Band.
✅ When price touches the upper band, it is overbought (possible decline).
✅ When price touches Lower Band, it is oversold (possible uptrend).
5. Fibonacci Retracement – To find support and resistance levels
✅ Fibonacci levels (23.6%, 38.2%, 50%, 61.8%, 78.6%) indicate support and resistance levels.
✅ Buy signal when price approaches 61.8% and reversal is seen.
✅ Sell signal when price drops below 38.2%.
conclusion
No single indicator is 100% accurate, so use at least 2-3 indicators in combination. Using them correctly will help you understand entry and exit points better and your trading will be more successful.
---
If you liked this post, share it and improve your trading experience! 🚀