How to use the indicators to trade cryptocurrencies?

Technical indicators for cryptocurrency trading is a really effective method that has been used for a long time. It is a strategy based on observation. Statisticians and professionals explain that the historical data of the cryptocurrency, the price, the volume in which it has evolved and each of the associated indicators must be observed in order to predict or predict the results.

Now, to start trading, you just need to register on a platform that allows you to do interactive technical analysis, such as es.bitcoineras.com/login .

A multitude of technical indicators for cryptocurrency trading

There is no single strategy. It will all depend on what you have in mind and your preferences. For example, some choose to go for Bollinger Bands, others go into the area of ​​moving average convergence divergence, stochastic, stopped oscillator, or Fibonacci retracements. Although these are different ways, the goal is the same: try to predict where the value of the cryptocurrency you are analyzing will go through technical analysis.

Likewise, whatever the diversity of the methods applied. The truth is that in the market for technical indicators for cryptocurrency trading, there are certain strategies that turn out to be the most used by traders. This is because they are really useful and allow you to anticipate what might be going on in the economy. What are the analysts' favorites?

The use of indicators in technical analysis

It is a method that can be applied in various markets, like Forex or cryptocurrencies, for example. If you decide to choose this route, you will need to observe each of the cryptocurrency's indicators precisely to be able to initiate an analysis on the movement it may have in the coming hours. Your price analysis will expose possible trading signals. Depending on the results you get, you will know if the time is right to buy or sell.

Indicators for a good technical analysis of cryptocurrencies

Thanks to the indicators, you will have more information in your technical analysis and will be able to better analyze the charts to make an entry or exit decision.

When performing technical analysis, you should avoid stocking up on indicators anywhere as this might hinder the ability to see the actual movement of the cryptocurrency market. You could make a lot of assumptions and at the end of the day you couldn't come to a really profitable conclusion.

Volatility according to Bollinger

Bolliger bands are also widely used in technical analysis of cryptocurrencies. It is a graph based entirely on statistics, for this it studies everything that has to do with prices and their volatility in a given period of time. The theory created by Bollinger in the 80s is very simple: “low volatility is often followed by periods of high volatility”.

So, with Bollinger Bands, you can gain access to the volatility range of cryptocurrencies. In general, when a price is split into multiple ranges, there is usually a positive growth in the demand and value of the cryptocurrency.

Moving average convergence divergence

The main feature of this method is that it focuses on a technical analysis of the prices initiated by the shares in the cryptocurrency market. If you use this strategy, you will always be working with two moving averages, so that you can observe the current trend. The higher the price, the stronger the trend. Likewise, when prices start to converge towards zero, this is marked as an entry signal. Everything is managed based on amounts, the higher or lower the cost of closing, the higher or lower the indicators.

Fibonacci retracement

If you choose this method to analyze the value of cryptocurrencies, you will need to take the highs and major lows of the chart. By applying Fibonacci, you can identify support and resistance levels. Above all, the most important thing is to take into account the most frequently repeated percentages of decline, which are typically 38,2%, 50%, 61,8% and 78,6%.

Now you know how to use technical indicators to trade cryptocurrencies. You also know which ones are used the most by traders around the world. Finally, the most important thing at this point is that you practice and behave really well with each of the methods so that you can apply them correctly when trading in the real world.