there's nothing wrong to see the indicator recommendations from crypto figures. Based on interviews conducted by Bitcoin Market Journal, here are 5 Bitcoin trading indicators that are recommended to complete your technical analysis.
1 Simple Moving Average (SMA)
Joe Lee, one of the founders of the Magnr crypto exchange, emphasized the importance of the SMA indicator for trading Bitcoin.
" technical indicator is the Moving Average. This indicator can eliminate short-term volatility, so you will not 'deal directly' with pure speculation."
by utilizing the results of the mean moving average, you can identify trend to read the movement of market bitcoin. for example, you can use simple moving average (SMA) period of 5 and the period 10. in the event of a cross between the lines MA that, you can get to open position as the principle of trading with a combination of moving average.
2 high school period
of one of the best way to wait and see if there crossover long-term is used moving average berperiode great. in Forex trading, high school 200 become standard MA great period that can be used as well as support resistance dynamic. but in the market bitcoin still so volatile, the use of high school 10 and 20 SMA already showed significant changes when compared with high school 5 and high school 10. you enough to apply both at the time frame larger than the chart before.
Charles hayter, founder and CEO platform currency digital cryptocompare, look if moving average berperiode large can confirm that more promising for traders to open position
- moving average convergence divergence (MACD)
technical indicators slightly more complex than high school is moving average convergence divergence (MACD). hayter explained that MACD is oscillator momentum combine a few moving average to identify the changes trends bullish price. this indicator rely on the calculation of exponential moving average (EMA), which is similar to the high school, but give greater weight to the data is latest price. it is to reduce the side of lagging high school that can make step open position so too late. MACD own can display crossing signals appear below chart. indicator it also has aspects of the histogram that can be used to measure the power of trends.
the function allows MACD to display the signal overbought and oversold. according to Joe Lee, asset price any financial markets, whether it's eyes UAN Fiat and crypto, will always through cycle overboought and oversold.
4 relative strength index (RSI)
if you want to use the technical indicators to get a better understanding of whether bitcoin being overbought or oversold, then you can get the readability clearer through the use of indicators RSI. usually, the limit overbought according to this indicator specified in the limit of 70, while oversold area 30.
5 cloud Ichimoku
Ichimoku is indicator that can define support area and resistance through display "cloud-their cloud". cloud Ichimoku formed as an area that can be stretched in front of the movement of the current prices. when the price was in the trend bullish, then the cloud Ichimoku will be under Candlestick and serves as a support. However, when the price down, the cloud Ichimoku will berawark above Candlestick and serves as the resistance. in addition, the price can also engaged in the cloud Ichimoku when the trend was sideways.
in the chart above, Green area shows cloud Ichimoku as support when trend was bullish. However, when the price down sharp, cloud Ichimoku move above Candlestick and become resistance area.
carefully, indicator always is lagging indicator certain technical, for example MACD and RSI, is the indicator lagging. that is, signal indicator will always late, could not signal before or when the price was formed.
zivkovski emphasize that indicator lagging not always give you the same value. "technical indicators such as MACD and RSI is a reflection of the price (which has been a), so that they will always lagging. so, each of the information you get be slower than what can you get from price itself."
the importance of knowing market sentiment Petar zivkovski confirms that the technical analysis can be effectively as many trader use it. he said: "technical analysis is" tools "psychological can work effectively as many trader use it. the simple indicator you use, the more players in the market that use it as well. therefore, the greater also chances of success its use."
However, to use the technical analysis effectively, you need to understand the psychology of trader impact on the market sentiment. this is because the market bitcoin own still easily controlled by the issues that usually Associated with the prospect of adoption and the use of currency crypto. therefore, you can not trading bitcoin only with technical indicators. diligently to follow the development of news crypto is required done, in anticipation of turmoil price movements that could arise due to changes sentiment suddenly.