Crypto Trading Indicators – List of Top Cryptocurrency Technical Indicators

In this guide, we will talk about everything about Crypto Trading Indicators.

But before going deep, you must know about some basics that technical trading is nothing but a discipline that includes jargon.

Along with terminologies, you can also see some advanced sounding concepts. 

Above all, one thing is for sure that everyone can become a fantastic trader after having a strong foundation about the basics.

After you have a strong foundation of the basics, you can quickly grasp the difficult indicators also.

Basics of Cryptocurrency & Technical Indicators

As all of us know by now, the cryptocurrency market is full of volatility, and there are a lot of things to gain and lose in this market. The majority of the traders choose to use technical indicators. 

It is because these indicators help in measuring everything like momentum, quality of price movement, volume, and a lot more. 

Basically, in technical analysis, they are mathematical calculations or signals which help in analyzing what might happen next in the price of a stock, commodity, etc.

Experts believe that it is just next to impossible to trade successfully in the cryptocurrency market without using the technical indicators.

You can indeed find many technical indicators prevailing in the market, especially on the big exchanges. But when it comes to choosing one indicator, it is undoubtedly challenging. 

Well, understanding indicators are not rocket science; all you need to do is understand what it reflects and why do you need it. 

After understanding the main agenda of having an indicator, the trader can easily conclude the significant parts of the deal. 

Some of the traders tend to use technical indicators to understand both the long term price direction of the asset. 

On the other hand, a few traders choose to rely on historical prices to understand the price movement instead of using fundamental indicators. 

Well, if you are new to cryptocurrency trading, then there is nothing surprising to know that you are confused with your hands.

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Know about Technical Indicators

When you just look at the crypto market, you can easily understand that it is all about variables.

It includes current price, price of the past, size, and a number of deals, etc., as the market comprises of these numbers, so when the number interacts, the price of the asset is decided. 

When traders analyze these figures, they can predict what is bound to happen in the near future at least. 

An average person can’t expect anything much because there are a plethora of changes occurring in the market every now and then. 

In simple terms, you can say that when you get some data and within minutes you can see it is not accurate anymore. So to make a correct prediction, traders use technical indicators. 

Ideally, a technical indicator is nothing but a graphical representation of some formula or function.

But obviously, it is not possible to fit all the figures in one chart or graph, so there are so many indicators available. 

Generally, no traders use all the indicators as per the rule because many of them are similar to each other. 

When they use all the indicators, then it is quite possible that variables tend to repeat themselves, and in some part of the market picture, the result is reflected. 

Hence each trader tends to use an indicator which he or she can understand completely. Above all, the indicators must not duplicate each other. 

When it comes to covering most of the picture, the indicator must use a maximum number of all the essential variables. 

Over time, there are a plethora of indicators available in the market; traders can choose any as per their convenience.

Best Crypto Trading Indicators – List of Top Cryptocurrency Technical Indicators

Here is the list of Top 7 Crypto Trading Indicators –

These are the best Crypto Trading Technical Indicators used by trading for making profits in the cryptocurrency exchange.

Relative Strength Index – Top Crypto Trading Indicators

Basically, the traders choose to use the technical analysis tool to measure both strength of dynamics and the price of the asset.

The main agenda of using the indicator is to understand if the asset is overbought or oversold. The RSI oscillator tends to fluctuate between 0 and 100.

Throughout the crypto trading community, RSI is one of the most popular trading indicators. Both beginners and advanced traders can use this indicator.

You can say the asset is overbought if the asset is around 70, and it is oversold if the asset is around 30.

Additionally, you can also understand if the asset is bearish or bullish. If the asset is below 50, you can say it is bearish, and when it goes above 50, the asset becomes bullish.

Above all, RSI is quite easy to read and build trading strategies. 

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Ichimoku Cloud – Best Crypto Trading Indicators

The indicator is amazing to analyze the support and resistance levels besides the trend direction. GoichiHosoda invented this back in 1969.

No doubt, the indicator looks quite complicated when you look at it for the first time, but it is quite simple to use once you understand.

Stochastic Oscillator – Top Cryptocurrency Technical Indicators

A plethora of Crypto traders tends to use this two-line momentum indicator. Basically, it is useful in measuring the difference between the closing price and range of prices over some period of time.

Ideally, the indicator uses the past 14 days’ prices to get a defined score. You can say that the asset is overbought if the score is above 80, and it is oversold if the score is below 20.

Just like RSI, this indicator also has a scale of 0 to 100. 

Moving Average Convergence Divergence or MACD – Best Cryptocurrency Technical Indicator

The indicator mainly gives a signal which can help you in predicting the beginning of a short term price trend and a stock’s reversal.

You can calculate the trend here by subtracting the 26-day exponential moving average from the 12 days EMA of the cryptocurrency. One can say the signal is positive when the 12 days EMA is above 26.

You can tell the momentum is increasing in simple terms, and it is the perfect time to buy.

You can sell the momentum which is moving forward if the long term moving average is more significant than short term average. Besides the MACD, a few traders can also track the signal line.

Ideally, it is a nine days EMA that helps in determining the calls of buy or sell. You can say it is a bullish run if the signal line is breached in an upward move.

When MACD runs below the signal trend, you can say it is a bearish line. 

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Bollinger Bands – Best Crypto Trading Technical Indicators

The traders use the indicator widely. You can use this indicator as a universal indicator. John Bollinger had developed this indicator.

The aim of the indicator is to find both the highs and lows during the dynamic markets. The indicator comprises the upper band, lower band, and a line of moving average MA.

The tool is fantastic to determine the market volatility when the price tends to fluctuate between the upper and lower bands.

Average Directional Index or ADX – Top 7 Crypto Trading Indicators

Traders mainly use this indicator to determine the quality of price movement. Just like RSI, it also has a score range of 0 to 100. You can say it is a non -directional signal.

In simple terms, you can say it doesn’t show you any particular direction. Additionally, the indicator helps you in determining the upward or downward momentum.

Aroon Oscillator – Top Cryptocurrency Technical Indicators

The majority of the cryptocurrency traders choose to use the Aroon oscillator as it is one of the most versatile tools.

It helps in signaling the direction of the price movement and tells about its strength. You can say it is an upward momentum when the score is above 0. A score below 0 indicates a negative trend.

Crypto Trading Indicators – Conclusion

To get a more in-depth insight into the asset’s price, crypto traders can use these indicators.

These indicators help them in predicting the future price of the asset. Traders can use multiple indicators to forecast price movements easily.

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