When it seems like the candles on the chart are dancing the lezginka, it's time to turn on technical analysis and pull out proven tools from the arsenal:
1️⃣ RSI (Relative Strength Index) — Trend Strength Indicator
💪 Shows whether the asset is overbought (above 70) or oversold (below 30).
📌 Imagine the market as a rubber band — if it's pulled too hard in one direction, it will bounce back. That's where RSI helps avoid getting caught under this rubber band.
2️⃣ MACD (Moving Average Convergence Divergence) — Momentum Indicator
⚡️ It's like a stethoscope for the chart: listens to the difference between moving averages to understand where the reversal is hiding.
🔄 When the MACD crosses the signal line — be ready, the trend may change direction.
3️⃣ Moving Averages — Simplicity and Reliability
📏 SMA and EMA show the average price over a certain period. It's like a horizon level: helps to understand where 'normal' is and where something went wrong.
🧭 Support and resistance, buy/sell signals — all in one simple line!