Smart traders don’t just react — they prepare.

And the best preparation comes from the right tools.

My Go-To Indicators and Why They Matter

1. RSI (Relative Strength Index)

This is my first filter. If RSI is above 70, I check for overbought signals. Below 30? Possible bounce zone. But I don’t trade RSI alone — it’s a clue, not a decision-maker.

2. Moving Averages (50 EMA & 200 EMA)

The trend is your best friend — and moving averages keep me in sync.

50 EMA crossing above 200 = bullish momentum.

Price respecting the 50 EMA = trend is still alive.

3. Volume

Volume confirms everything. Breakouts without volume? Usually fake.

If price is moving and volume is supporting, I trust the move.

How I Combine Tools for Better Accuracy

One tool rarely gives a full picture — but together, they build confidence.

  • Trend Confirmation: I use EMAs to check the bigger picture, then zoom in with RSI for short-term strength or weakness.

  • Entry Setup: A breakout above resistance means nothing without volume. I wait for that spike to confirm.

  • Exit Timing: RSI divergence + price hitting resistance + volume drop = time to scale out or secure profits.

Tools don’t trade for you — they support your decisions.

Use them wisely, and they’ll keep you from overreacting.

That wraps up our deep dive into Crypto Trading Fundamentals.

Follow @mythoughts — no hype, just thoughts.

#TradingTools101 #TradingTypes101