#TradingTools101
#MarketRebound If you're trading crypto without using any technical indicators, it's like playing blindfolded 👀 I'll explain 3 indicators that will help you understand the market better and increase your chances 👌
RSI Relative Strength Index
Simply put, this indicator tells you whether there are too many people buying this currency or not.
If the number is above 70 → the market is overbought, it might drop.
If it's below 30 → the market is oversold, it might rise.
So it tells you when to buy and when to hold.
MACD Momentum Indicator
It's made up of two lines that cross + bars that move.
When the lines cross upwards → there's buying momentum.
When they cross downwards → there's selling momentum.
It helps you know the upcoming direction.
Moving Averages Average Price Movement.
If the price is above the line → upward trend.
If the price is below → downward trend.
If the short-term averages cross the long-term upwards → buy signal.
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If you combine all three, you'll see the picture clearer. It's not necessary to enter or exit based on just one indicator.
Always think like this: RSI tells you if the market is overbought or not, MACD tells you the direction and momentum, and moving averages tell you the trend.
Try adding them on a Binance chart and start getting used to them; it will significantly impact your decisions 😊👻