You know when you're sitting with friends, and everyone has a different opinion, and you're standing there not knowing who to believe? That's exactly what happens when you use multiple technical indicators in crypto, and each one gives you a different signal!
Why do indicators sometimes confuse us instead of helping us?
1. Each indicator has its own way of thinking.
There are indicators that measure the trend, such as moving averages (EMA, SMA), which tell you where the market is going in the long term.
There are momentum indicators like RSI and MACD, which tell you if the market is gaining momentum or is about to crash.
There are trading volume indicators that tell you whether the movement is supported by money or by whims.
So you find one of them telling you, “The price is going up,” the second one telling you, “Be careful,” and the third one telling you, “Sell now,” and then you’re the one who’s going to get confused!
2. The time frame can change everything.
You look at the 5-minute frame and you find a buying opportunity. You look at the 4-hour frame and you find the world collapsing. You go to look at the daily frame and you find the indicators laughing at you from afar!
3. The market has its own mood.
Technical analysis is based on the past, but the market is moved by news, mood, and whale manipulation.
All indicators might be giving you a sell signal, but suddenly Elon Musk tweets, and the market starts to burn while you stand by and watch!
Examples of this confusion in the market
Moving Average vs. RSI
50-day moving average breaks 200-day moving average upwards → buy signal.
RSI in overbought (above 80) → sell signal.
Who should we believe? What should we do?
MACD tells you to buy, but volume tells you to wait!
MACD indicator bullish crossover → buy opportunity.
But the trading volume is weak → meaning the trend is not strong, and you may be laughed at.
Do you go in and don't wait? Or do you leave the market and go have a coffee?
So what's the solution? Use compatible indicators instead of getting confused!
Instead of getting lost among conflicting indicators, you can use complementary indicators to make a clearer decision. A simple example:
✅ Moving average EMA 50 and EMA 200 → to determine the general trend.
✅ RSI indicator → to know if the market is overbought or oversold.
✅ Trading volume → To make sure that the movement is real and not just a trap.
Quick example:
If EMA 50 breaks EMA 200 above + RSI is still below 70 + trading volume is high → this means there is a good entry opportunity.
But if the RSI is above 80 and the price continues to rise but the trading volume is weak → be careful, the market may trap you!
How to act when indicators are suffocating?
1. Don't open a million indicators!
The more indicators you add, the more confusion you create. Stick to 2-3 indicators that are consistent with your strategy.
2. Select the time frame you are working on.
If you are scalping, focus on small time frames (5 minutes – 1 hour).
If you are an investor, focus on the long frames (4 hours – daily).
Don't let small frames fool you if you intend to invest for the long term.
3. Look at the big picture
Not every buy signal means the market will go up, and not every sell signal means the market will go down.
Look at the general trend, news, and market behavior before making a decision.
4. Don't invest all your capital in one deal.
The market is volatile, and if you put all your money in based on a single signal, you could end up in a hole.
Conclusion
When you find your indicators confusing, take a deep breath, analyze them calmly, and don't let contradictory signals shake you. Ultimately, the most important thing is to have a clear plan and recognize that the market isn't always logical. And if you find yourself lost, always remember the golden rule: "Don't believe everything the indicators say, because sometimes they're just as confusing as you!"
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