Best Indicators for Cryptocurrency Trading
1. MYC Trading Indicator
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 bearish phase.
An important feature of the MYC indicator is the trend line, which indicates that a long signal can be printed when the price crosses upwards, and conversely, when the price moves downwards. This indicates that a short signal can be printed. Unlike other public indicators such as RSI and Bollinger Bands, this indicator provides a suggested entry as well as an exit point so that traders can focus more on determining the size or leverage of their position.
The indicator can be used with the following trading pairs, and in addition, below is the percentage return and accuracy for the indicator:
BTC - Return: 200%, Accuracy: 70%
ETH - Return: 200%, Accuracy: 70%
LTC - Return: 250%, Accuracy: 70%
BCH - Return: 100%, Accuracy: 75%
ETC - Return: 350%, Accuracy: 70%
EOS - Return: 250%, Accuracy: 70%
TRX - Return: 650%, Accuracy: 90%
LIN - Return: 350%, Accuracy: 90%
getting started:
To get started with MYC trading indicators, just follow the instructions below.
1) If you have a telegram messaging app, you can get started by contacting the admin and sending a message to: YMYCSupportBot which will give you access so that you can check the signal for yourself. If you do not have a telegram messaging app, you can get started by sending an email to contact@mycryptopedia.com.
2) You can also join the Free Crypto Signals group: MYC signals, so that you can get live trades and see the performance of the signals for yourself.
2. Relative Strength Index (RSI)
.png "Relative Strength Index (RSI)")
Developed almost 40 years ago by Wells Wilder, a technical analyst, the RSI indicator helps traders identify when the price of a bitcoin is far from its "real" value. Therefore, it allows a trader to take advantage before the market corrects itself. Using RIS traders can realize great trading entry points, and over time, this Bitcoin indicator has become an invaluable tool for trading volatile crypto markets.
The RSI uses a complex formula to determine whether an asset, in this case, Bitcoin has been over-bought or over-sold. The formula returns a value that is in the range 0-100 and can be represented on the chart using an oscillator - wave type pattern.
RSI = 100 - 100 / (1 + RS)
RS = Average closing of X periods / Average closing of X periods.
It is recommended to use X = 14, but you can use any number of your choice.
When the RSI falls below 30, an asset is considered a high selling or a low price. On the other hand, when the RSI goes above 70, it is considered over-bought.
Bitcoin Indicators: How to use Relative Strength Index (RSI)
It is easy to identify when an asset will cool down even for a short period of time, and this can be seen when the chart is in a high buy area. After the RSI has crossed 70, you can be sure that there will be a return.
According to the chart above, the asset was in the most purchased area on six occasions. As a trader, over-purchased conditions provide an opportunity to make a profit on a position or to close it altogether. A trader can also open a short position and make a profit from the lower price action.
RSI also shows that when an asset returns to a "sell-off" price, it reaches a point of exhaustion after continuous bleeding. This is somewhere below 30, and this means that the bulls are more likely to take control and move up the price.
The chart above shows that when the asset fell below the 30 RSI on four occasions during the 11 months, each time it bounced back from 22% to 83% over the next few days. According to two charts, it is clear that RSI often offers good signals for traders.
3. Bollinger Bands
Created by John Bollinger Bands in the 1980s, a financial analyst, Bollinger Bands are used by traders for technical analysis. They act as an oscillator measurement, indicating whether the market is more or less volatile or even if there are excessive buying and selling conditions.
The basic idea behind this bitcoin indicator is to show how prices are spread in the average value. Bollinger Bands consist of an upper band, a moving average line, and a lower band. Two external bands react to the market price action. When the fluctuations are high they spread (away from the middle band) and when the fluctuations are low they contract (close to the middle band).
The standard Bollinger Band indicator formulas set the center line as the Simple Moving Average (SMA) of 20 days. As far as top and bottom bands are concerned, they are calculated based on market fluctuations.
Middle Line: Simple Moving Average (SMA) of 20 days
Upper band: 20-day SMA + (20-day standard deviation x2)
Lower band: 20-day SMA - (20-day standard deviation x2)
According to this configuration, at least 85% of the price data is transferred between upper and lower band, but can be adjusted according to different trading strategies and requirements.
Bitcoin Indicators: How to use Bollinger Bands.
Therefore, if the price of an asset exceeds the moving average and exceeds the upper part of the Ballinger band, it is safe to say that the market is in a more bought state (higher). If the price touches the upper band several times, it could be a sign of a significant resistance level. On the other hand, if the price falls significantly and rises or touches several times below the lower band, it is an indication of an oversold market, or the price has found a strong support level. Therefore, Bollinger Bands are suitable for short term trading as you can analyze market fluctuations and try to predict future movements.
4. Moving Average (MA)
Of the bitcoin indicators, the Moving Average indicator is used to smooth the price action over a period of time. MA is a lag indicator which means it is based on the previous price action. There are two types of moving averages. Simple Moving Average and Exponential Moving Average. As a trader, the MA you choose depends on your trading style. Therefore, if you are a short-term trader, a short MA is more effective for your trading style, whereas a long MA is suitable for a long-term trader. In trade, MA acts as a support or resistance.
Bitcoin Indicators: How to Use Moving Averages.
MA slopes can help a trader explain the trend, and is very easy to do. Once you know that the MA is tilting upwards, it means that the asset is trending upwards or the price is rising. But, if MA is tilting downwards, it means that the asset you are estimating is in a downward trend or down in price. The chart below shows the slope shifting towards the end, suggesting that the price is entering a downward trend.
It is important to note that MA is a lagging indicator. Therefore, only a moving average slope can help you explain the trend. Because of this, the single moving average is not reliable enough to be used to track upward downward trend.
Moving average(MA) crossovers offer another popular trading signal. To trade crossover, you must have two or more MAs on your chart. You can use only two crossovers to avoid clutter your chart and make sure that the moving averages (MAs) are longer than each other.
Once you've switched to short-term MA and long-term MA on your chart, look for crossovers. This means: If the short MA crosses above the long MA, it is a bullish trading signal. But, when the short MA falls below the long MA, it is a bearish trading signal. The chart below shows how 9M on a 1D chart
5. Moving Average Convergence / Divergence (MACD)
Known as the Moving Average Convergence / Divergence (MACD), it is one of the most popular bitcoin indicators for cryptocurrency trading. This is due to its simplicity and ability to provide strong cryptocurrency signals. The MACD represents a trend-following indicator that sheds light on whether the short-term price is moving in the same direction as the long-term price, and in cases where it is not. , Then it is used to determine if a change in trend is imminent. MACD indicator consists of four components. MACD line, signal line, zero line and histogram.
Bitcoin Indicators: How to use MACD.
To get the MACD line, subtract 26-EMA from 12-EMA. EMAs are used on regular MAs to improve sensitivity to trend changes and price movements.
The signal line, by default, is a 9-term EMA when the signal line joins the MACD line, where the two lines meet, diversion and cross, forming the basis of many trading signals.
The zero line is the level where the MACD line is at zero. The 26-term EMA and the 12-term EMA are the same on this line.
The histogram shows the distance of the MACD line from the signal line. This can be either positive when the MACD line is above the signal line or negative when the signal line is above the MACD.
Unlike other bitcoin indicators, MACD has no absolute limit. As such, it is not appropriate to estimate the terms sold and purchased.
When two duplicate lines cross over, the two common trading signals you can generate using the MACD include: Fast - where the MACD crosses the signal line or bearish - where the signal line is above the MACD line. Passes through And since these crossovers are frequent, you may encounter a lot of false positives. Therefore, you better understand these signals by combining them with others to make better business decisions.
If the MACD line and the signal line move together, it is considered a sign of acceleration and represents increasing positive momentum. But, if the MACD is falling, it is a sign of a downturn and highlights the increasing negative momentum.
You can use MACD to find areas of price deviation, thus offering trading signals. The difference in speed occurs when the price prints less while the MACD prints less, or the price prints less while the MACD prints less.
As a result, a bearish diversion occurs when the price prints higher, and the MACD records lower, or when the price prints lower, while the MACD records higher. The chart below shows a situation where the price prints less and the MACD prints less, indicating that the trend is about to change.
