As we all know, crypto trading is not a thing we can do randomly, we must first analyze the price and decide based on that , 99% of the people fail in crypto trading because they just start trades randomly, to do Crypto trading profitably we must know when to buy and when to sell, to make that thing super easy we have Crypto Trading Indicators which analyze the price action and give us the results in the form of graphical representations. Crypto Trading Indicators are the best way to analyze crypto prices.
Read my last article in which I discussed, What are Crypto Trading Indicators?
Best of all- A lot of the Crypto Trading Indicators are free which makes them even more useful!
So in this article, we will discuss about The Top 4 Best Crypto Trading Indicators?
So without wasting time lets get started with our beginners friendly article.
All the below listed indicators can be found on Stormgain.
1.Relative Strength Index(RSI)
RSI(Relative Strength Index) is one of the most famous Crypto Trading Indicator, and you would have probably heard about RSI(Relative Strength Index) before as well. RSI(Relative Strength Index) is an indicator that helps us indicate in if an asset is overbought or oversold, the lower the RSI(Relative Strength Index) the more the asset is oversold, the higher the RSI(Relative Strength Index) the more an asset is overbought. An RSI(Relative Strength Index) below the 30 range is considered the best time to buy and an RSI(Relative Strength Index) above the 70 range is considered the best time to sell. Remember to not only use RSI(Relative Strength Index) while trading we must use it combined with some indicators to get more reliable results of when to trade and when not to trade. I personally always mix RSI(Relative Strength Index) with any other indicators that I use and it works perfectly for me. So RSI(Relative Strength Index) definitely is the best and simplest Indicator from my personal experience.
Trade with this indicator on Stormgain- click here
2.Bollinger Bands
Bollinger Bands are a technical indicator that helps us to define trends and measure the volatility of assets like crypto. In crypto trading Bollinger Bands are almost implemented into every other trading strategy, they measure the volatility of returns from historical average or mean such as a 14 day average, which means it calculates the volatility of assets by reading older trends. These bands are two standard deviations above and below a moving average. We crypto traders usually decide to start a trade when the price of the asset moves below the lower band or above the upper band, that gives us buy and sell signals very reliably, we still use some other confirmations to decide whether its the right time to trade or not. Also, Bollinger Bands work perfectly with RSI(Relative Strength Index), we can use these both to decide when to buy and sell.
Trade with this indicator on Stormgain- click here
3.MACD(Moving Averages Convergence Divergence)
MACD is a very popular trading indicator that is used for identifying momentum in assets prices. It shows the relationship between two moving averages of the asset. It’s a line representing the average value of historical data over a given period of time like 20 days. The purpose of MACD is to make reading of moving average crossovers easier. MACD is calculated by subtracting the 26-period moving average from the 12 period moving average. After the calculation, a 9-day moving average signal line is plotted on top of the MACD line. It has an easy histogram which goes up or down depending on the price momentum, which can give us easier buy or sell signals, lets say the price first goes down and then up again it can potentially be a nice time to buy, but of course remember to use it with other indicators, only use MACD to confirm trades from other signals.
Trade with this indicator on Stormgain- click here
4. Moving Average
The Moving Average is a very famous trading indicator that smooths out price trends by filtering out the noise from random short-term price fluctuations. They help in indicating the trends and price directions of an asset. People usually use Moving Average crossovers as a buy or sell signal. The MACD Indicator that we discussed about also consists of moving averages with an extra histogram. They also act as a support of resistance. MACD is better than a Moving Average, so you should prefer MACD over MA. Also remember not to use this alone. As well, like any other indicators, we must combine several indicators to come out to be profitable at all. 1 indicator can never guarantee profit, multiple indicators always help you in confirmations of when to trade.
Trade with this indicator on Stormgain- click here
As we discussed in the above article what are the top 4 best crypto trading indicators, and how they work. Hopefully you would have got a clear understanding to the very basic stuff about crypto indicators that you can start with as an absolute beginner and eat your sweet profits!
Definitely make sure to check my other articles related to crypto trading
Thanks for reading, if you have any doubts definitely comment down below I reply to all the comments.
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