Buying and selling cryptocurrencies with pictures, based on technical and fundamental analysis. Here are the most important signs traders rely on:
First: Buy Signals
1/ Moving Averages Cross
Example: If a short moving average (such as 50 days) crosses from bottom to top with a long moving average (such as 200 days), it is a buy signal.
2/ Strong Support Level
If the price reaches a strong support area and does not break it, with bullish candles appearing, it is a sign of a potential uptrend.
3/ The Relative Strength Index (RSI) is less than 30.
When the RSI drops below 30 and then rises again, this may indicate that the currency was oversold and is a buying opportunity.
4/ Positive reversal candles
Such as a hammer candle or a bullish engulfing candle at support areas.
5/ Increase in volume
If the price rise is accompanied by an increase in trading volume, this supports the continuation of the rise.
Second: Sell Signals
1/ Negative moving averages crossing
When the shorter moving average crosses above the longer moving average, it is a bearish signal.
2/ Strong resistance
If the price reaches a historical resistance level and starts to decline, especially with bearish candles, it is a sell signal.
3/ RSI is above 70
It indicates that the currency is overbought and may start to decline.
4/ Negative reversal candles
Like a shooting star or a bearish engulfing candle at resistance.
5/ Volume decreases with the rise
If the price continues to rise but the trading volume begins to decrease, the rise may be weak and will be followed by a decline.
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