You are currently viewing What are Indicators in Crypto Trading?  |  by Qryptography |  Coinmonks |  Aug, 2022

What are Indicators in Crypto Trading? | by Qryptography | Coinmonks | Aug, 2022

As a beginner in Crypto Trading, it becomes very hard to decide when to buy, when to sell, should I start a trade or not. Beginners will usually do some random trades and lose money, which leads to them not succeeding. 99% of the beginners usually fail in crypto trade and start to lose a lot of money.

But, there is any way to fix this and understand when to buy and when to sell, that’s where indicators are going to help us. Indicators can be one of the best forms of technical analysis for crypto trading. If we know how to use indicators correctly, then we will be able to trade correctly and start to make consistent profits.

Best of all β€” A lot of indicators are free, which means you can use them for absolutely free and start to trade profitably.

Go through my last article in which I explained about Crypto Scalping. Indicators play the biggest role in Crypto Scalping as well.

So in this article, we will discuss about what are Indicators in Crypto Trading, are indicators useful? , how to use crypto trading indicators? , where to use crypto trading indicators? , The best crypto trading indicators?

So without wasting time lets get started with our beginners friendly article.

Crypto Trading Indicators are those tools which help the user in trading, by using technical analysis, they give us technical analysis so we can decide to put a buy or sell trade by predicting the price will go up or down. They give us indications that whether its the right time to buy or not. In order to be successful in Crypto Trading we must utilize these crypto trading indicators for the technical analysis, by using Crypto Trading Indicators we are able to make the most out of crypto trading, they are some of the easiest ways that we can use to decide whether to buy or sell. Even 1 or 2 Indicators can be enough for us to decide whether to buy or sell. Technical analysis is simply the method of predicting the direction of an assets price. Several strategies involve Crypto Trading Indicators in which we use these indicators to our advantage and use them to decide when we should start a trade. These indicators work based on certain mathematic formulas, but they are plotted on a graph to provide a better picture to the user. In most of the strategies we use indicators, as without indicators it is almost impossible to trade, that’s why we must use indicators and enjoy our profits.

Now hopefully, the above part would have given you a clean introduction to what is crypto trading? , now lets move on to are crypto trading indicators useful?

The answer to this question will be a BIG YES! As Crypto Trading Indicators help beginners know when to trade or when not trade, Indicators are a life changing opportunity for Crypto Traders, I personally have been using indicators since around 1.5 years and I can easily tell you that, if we follow the correct strategy with Indicators, 99% of the times we will win and make a shit ton of profits. That’s why beginners should focus on Indicator based strategies. The best thing about Indicators is that most of them are free and the free ones are the best ones anyone can use them to make their trades properly.

Now that you know that yes, Crypto Trading Indicators are definitely a useful thing, let’s move on to how to use crypto trading indicators?

So, like you understood what are crypto trading indicators and they are useful or not, now we must understand that how to use crypto indicators. So, in order to use crypto indicators, first we must understand the indicator which we are using. Which means you need to know what does the Indicator do that you are using does. Each Indicator has it’s own use. Some Indicators will tell you to buy or sell directly, others will give you some weird numbers or patterns that you will need to understand. To understand those numbers and patters you will need to research about the Indicator you are using.

Now that you understood how we can use Crypto Indicators, let’s move on to where to use Crypto Indicators?

  1. Stormgain
  2. Kucoin
  3. Bybit

Click here to see a more in depth guide about these platforms.

All of the below listed Indicators can be found on TradingView, click here to make a free account.

  1. RSI(Relative Strength Index): RSI(Relative Strength Index) is my most favorite indicator because its the simplest one to use and can be profitable when used correctly, I usually use RSI(Relative Strength Index) for my sell trades, it works all of the time for me, whenever i sell at 72 or higher at 15x leverage I’m always at profits. RSI(Relative Strength Index) simply tell if an asset is overbought or oversold, the higher the RSI(Relative Strength Index) the more its overbought, and the lower the RSI(Relative Strength Index) the more its oversold.
  2. MACD(Moving Average Convergence Divergence): MACD(Moving Average Convergence Divergence) is an indicator that indicates a trend, by showing the relationship between two moving averages of a security price. The way that MACD(Moving Average Convergence Divergence) is calculated is by subtracting 26-period EMA(Exponential Moving Average) from the 12- period EMA(Exponential Moving Average). It can be used as a buying or selling Indicator.
  3. Bollinger Bands: Bollinger Bands determine upper and lower price ranges. Bollinger Bands help us in determining if the price is low or high at a certain point. They are in pairs of upper and lower bands. We can use them with other signals to confirm if certain buy or sell signals are right or not.

So in the above article, we discussed about what are crypto trading indicators, how to use them, where to use them, what are the best crypto trading indicators. And hopefully, you would now have a clear understanding of what they mean. Crypto Trading Indicators will definitely help you a lot while trading, still if you have any doubts definitely make sure to comment down below, I will reply to every comment down below!, have a nice day πŸ™‚

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