Apr 14, · On Balance Volume (OBV): This is one of the best indicators for day trading bitcoin. It is used to basically analyze the total money flow in and out of an instrument. The OVB uses a combination of volume and price activity. This tells you the total amount of money going in and out of the market/5(48). The best bitcoin indicators are RSI, moving averages, Ichimoku clouds, Fibonacci (it's a tool though), volume, momentum, basically, whatever helps you park the car better, but you can do it all without if you know how to drive. And Blockchain Whispers followers are not pussies - .
Best indicators for bitcoin tradingBest 8 Bitcoin Indicators for Cryptocurrency Trading - Mycryptopedia
The MYC Trading Indicator is a private indicator that uses a combination of trend analysis and momentum oscillators to accurately determine when a cryptocurrency will enter a bullish or a bearish phase. A key feature of the indicator is the trendline, which when the price crosses upwards, indicates that a long signal may be printed, and conversely, when the price crosses downwards indicates that a short signal may be printed. Unlike with other public indicators such as the RSI and Bollinger Bands, this indicator provides a recommended entry as well as exit point so that traders can focus more on determining the size of their position or the leverage.
The indicator can be used with the following trading pairs, and along with it, below are the percentage returns and accuracy for the indicator:. Using the RSI, traders can realize great trading entry points, and over time this Bitcoin indicator has proven to be an invaluable tool for trading the volatile crypto markets. The RSI uses a complicated formula to determine if an asset, in this case, Bitcoin is overbought or oversold.
The formula returns a value that ranges between and can be presented on the chart using an oscillator — a wave type-pattern. An asset is considered oversold or undervalued when the RSI drops below Once the RSI passes 70, you can be sure there will be a pullback.
According to the chart above, the asset was in the overbought territory on six occasions. As a trader, overbought conditions offer a chance to take profits on a position or even close it entirely. A trader could also open a short position and profit from the downward price action. Created in the s by John Bollinger, a financial analyst, Bollinger Bands are utilized by traders for technical analysis. They work as an oscillator measurer, indicating whether the market has a high or low volatility or even if there are overbought and oversold conditions.
The main idea behind this Bitcoin indicator is to show how prices are spread across an average value. Bollinger Bands are composed of an upper band, a moving average line, and a lower band. The two outer bands react to market price action. They expand move away from the middle band when volatility is high and contract move closer to the middle band when volatility is low. As for the top and bottom bands, these are calculated based on market volatility. If the price touches the upper band several times, it could be a sign of a significant resistance level.
Therefore, Bollinger Bands are suitable for short-term trading as you can analyze the market volatility and try to predict the movements that are likely to come. Of the Bitcoin indicators, the Moving Average indicator is used to smooth price action over a given period.
There are two types of Moving Averages; simple moving average and exponential moving average. As a trader, the MA you opt for depends on your trading style. So, if you are a short-term trader, a shorter MA is more effective for your trading style, while a longer MA is suitable for a long-term trader.
In trading, MA acts as a support or resistance. MA slopes can help a trader define a trend, and doing this is quite simple. Once you find out that the MA is sloping upwards, it means the asset is in an uptrend or gaining in price. But, if the MA is sloping downwards, then this means the asset you are assessing is in a downtrend or losing in price. The chart below shows the slope changing towards the end, which suggests the price entering a downtrend. Therefore, a moving average slope can only help you define a trend.
Moving average crossovers offer another popular trading signal. You can use only two crossovers to avoid cluttering your chart and ensure one of the moving averages MA is longer than the other.
Once you have a short-term MA and a long-term MA switched on your chart, watch out for the crossovers. This is what they mean: If the short MA crosses above the long MA, then this is a bullish trading signal.
But, when the short MA falls below the long MA, then this is a bearish trading signal. See the bearish cross in the chart below and the tremendous price drop that follows. EMAs are used over regular MAs to improve sensitivity to trend changes and price momentum.
The signal line, by default, is a 9-period EMA when the signal line is combined with the MACD line, where the two lines converge, diverge and cross forms the basis for many trading signals. Okay, they get liquidated on high leverage, but it's holding level, I just entered too early Yes, eventually it does go up Remember this. Remember BCH pump recently? RSI was through the roof and more They when they gain, they "guess" based on an indicator the reversal, they sell very early, when it comes back to above 30 levels And we talk about the most popular crypto indicator in existence!
The most useful, most accurate signal you can get based on an indicator is:. Look out the window, you don't need to rely on the camera view to know how to drive straight. If you know how to read charts properly, you don't need crypto indicators anymore.
I don't use them. You have never seen me use them, or base on them any trade for Blockchain Whispers while I was trading. Now I see my top traders since I retired in April , they use very few to no indicators. And absolutely NO traders in Blockchain Whispers team base their trades on what indicators say.
Yet so many newbies do! The trading is based on three things:. Speculation part is what makes them useless. If it takes just 30 points below to liquidate a huge amount of indicator-based traders If you are experienced - you do NOT need indicators. When nobody wants to share this, you know I will. Top traders do not use indicators. I had close contact with Bitmex Leaderboard trader - no indicators. I had close contact with super accurate traders - no indicators or some basic for easy charting like volume and momentum.
You can read everything off the charts. Do not drive based on the lagged image your camera relies to you. Trust your own eyes, build your instinct and join the winners. Screw crypto indicators! The best bitcoin indicators are RSI, moving averages, Ichimoku clouds, Fibonacci it's a tool though , volume, momentum, And Blockchain Whispers followers are not pussies - you either know or you learn how to drive.
You don't scream: "Mommy, come park my car please! Comment if you agree, if this answered some of your long held suspicions and if articles like these help you become badass and more ready for the crypto year to come! This happened just a couple hours after this article was published.
Case and point. Already have Blockchain Whispers account? Login Here. If you don't have a Blockchain Whispers account click here. If you forget your password reset it from here. Here's the truth about indicators. Any crypto trader should read this. I don't spam. I often forget to even write. But when I do Thank you for your trust. The common rule of a thumb is - to determine oversold or overbought levels. So many newbs go full scale all-in long.
This is what happens: Okay, they get liquidated on high leverage, but it's holding level, I just entered too early