For quality crypto trading, it is important to use a combination of technical, fundamental, and behavioral indicators. Here are the key ones:
Technical indicators
They analyze charts and trading volume:
Trend indicators:
Moving Averages (MA, EMA, SMA) – show trend direction.
MACD (Moving Average Convergence Divergence) – indicates reversals and trend strength.
Parabolic SAR – helps determine entry/exit levels during a strong trend.
Oscillators:
RSI (Relative Strength Index) – shows overbought (>70) or oversold (<30) conditions.
Stochastic RSI – a more sensitive analog of RSI.
CCI (Commodity Channel Index) – similar to RSI but with different calculation.
Volume:
OBV (On-Balance Volume) – confirms trends based on volume.
Volume Profile / VPVR – shows at which levels the greatest trading volumes occurred.
Volatility:
Bollinger Bands – show periods of low and high volatility; breaching the boundaries may indicate strong movement.
ATR (Average True Range) – measures volatility and helps set stop-losses.
Fundamental indicators
Especially important for long-term trades:
Network metrics (on-chain data):
Number of active addresses
Hashrate (for PoW coins)
Balances on exchanges
NVT (Network Value to Transactions)
Macro factors:
Regulatory news
Movements of stablecoins (e.g., influx of USDT/USDC to exchanges)
Market of traditional assets (e.g., NASDAQ, gold, dollar index)
Behavioral and sentiment analysis
Fear & Greed Index – assesses the overall market sentiment.
Funding Rate (on futures) – positive indicates overheating of longs, negative indicates shorts.
Short/Long Ratio – helps determine position imbalance.
Recommended combinations:
RSI + Bollinger Bands – for assessing local extremes.
EMA 20/50/200 + MACD – for catching trends.
Volume + Price Action – to assess the strength of movements.