💡 Learn about success tools before you start trading
In the world of cryptocurrencies, luck alone is not enough! 🧠
The smart trader relies on tools called technical indicators to assist him in buying and selling decisions.
But what are these indicators?
And what are the top 3 indicators every beginner needs to know?
Stay tuned to know 👇
✅ 1. Moving Average (MA)
It is one of the simplest indicators, used to determine price direction over a period of time.
🔹 How does it work?
Calculates the average price of the currency over a specified period (like 50 or 200 days).
Helps you know:
Is the price rising? Or in a general decline?
🔍 If the price is above the average ➜ the market is bullish
🔍 If the price is below ➜ the market is bearish
📌 Practical example: When BTC surpasses the 200-day moving average, some traders consider it a positive signal.
✅ 2. Relative Strength Index (RSI)
Measures the strength or weakness of price movement and determines whether the currency is overbought or oversold.
🔹 Ranges from 0 to 100
If RSI > 70 ➜ the currency is overbought (potential upcoming drop)
If RSI < 30 ➜ the currency is oversold (potential upcoming rise)
💡 Great for avoiding late entries or selling at the market bottom.
✅ 3. MACD (Moving Average Convergence Divergence)
Used to monitor trend strength and momentum, and shows entry and exit signals through line crossings.
🔹 When the MACD line crosses the signal line upwards ➜ buy opportunity
🔹 When it crosses downwards ➜ sell opportunity
📈 MACD is useful for confirming buy or sell signals from other indicators.
🎯 Why are these indicators important?
✅ Reduces emotional decisions
✅ Helps you enter and exit wisely
✅ Used by professionals and amateurs
But always remember:
Do not rely on a single indicator; combine them to get a clearer picture.
⚠️ Note for Beginners:
You don't need to be an expert to analyze!
Start by understanding these three, and try them on free tools like:
📊 TradingView
📊 Binance Chart Tools
Learning by practice is the secret! 🔑