Top 5 Indicators Every Crypto Trader Should Know

If there is something I have learnt about this crypto space, it is the fact that guesswork will never make you to be successful when trading. You need to have the right knowledge and skills to be able to succeed in crypto trading. Today I am writing to us to point out top 5 indicators that I believe every crypto trader should be aware of which can help them in their crypto trading.

Let me start with the moving average that many of us know about. Moving average will help you to know the trend and direction of the market. Under the moving average, of course we have the simple moving average and the exponential moving average. Both of them do work separately but if you are able to learn how to use both, you will go far in your analysis much more than you can ever imagine.

The second one is relative strength index. Relative strength index is even the most common type of indicator that we make use of. RSI function most especially as a momentum oscillator and works under the scale of 0-100. When the reading is below 30, it signal for you to buy and when it is above 70, it signal for you to sell. RSI is mostly used for entries and exits.

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The third one is the moving average convergence divergence which we always called the MACD. This is less common but it is importance. If you can make proper use of MACD, you will be able to learn about the bullish signal and help you to know the bearish signal. This help you to identify trend most especially if you are the type of crypto traders that trade with trends. If necessary give you buy and sell signals.

The fourth one I will like to talk about is the volume. Volume is simply just as the name implies, it will help you to manage the rate at which a particular crypto asset is been traded positively or negatively. When there is high trading volume, it actually means there is so much potential and less volatility for the asset and vice versa. This is mostly used to notice if there is any possible volume spike or not.

The last one I will like to talk about as I conclude is the popular bollinger bands. Bollinger bands helps you to know if there is any trend reversal and to know the breakout opportunities so that you can actually maximise it for trading. I believe all these indicators are really necessary that you should learn to master if you are a crypto trader.