To trade cryptocurrencies confidently using technical tools:
- RSI (Relative Strength Index): Identifies overbought (>70) or oversold (<30) conditions and potential trend reversals.
- MACD (Moving Average Convergence Divergence): Measures trend strength and possible reversals via moving average crossovers; works best when combined with RSI for confirmation.
- Moving Averages (SMA/EMA): Smooth out price data to reveal trends over time.
Combined Use: Using RSI, MACD, and moving averages together improves accuracy by confirming signals and helping traders make more informed decisions.