October 28, 2020

Top 4 Indicators to Trade Cryptocurrencies

The technical analysis in financial markets has never been a piece of cake, since it requires a mindset that can only be acquired with practice and consider a series of factors that, although they are on each chart, we do not always understand what they tell us.

The technical analysis in financial markets has never been a piece of cake, since it requires a mindset that can only be acquired with practice and consider a series of factors that, although they are on each chart, we do not always understand what they tell us. To support our analysis, we have popularized the use of indicators and trading tools, in order to give us a more accurate forecast of new trends and possible price fluctuations. In this opportunity, we will talk a little about the top 4 indicators to trade cryptocurrencies.

Top 4 indicators to trade cryptocurrencies

AltSignals Indicator

The AltSignals indicator is one of the most accurate that we can add to our charts since instead of determining an exact point or level to buy/sell a cryptocurrency, it indicates the moment when it enters the bullish or bearish phase.

Knowing that the price will fall or rise from a specific point allows us to take advantage of the maximum and minimum points of the chart to be able to correctly position our positions.

This indicator is highly respected and has a high hit rate, so it is never a bad idea to buy it. The AltSignals indicator has its well-deserved position among the top 4 indicators to trade cryptocurrencies.

Relative Strength Index (RSI)

The RSI is one of the oldest indicators as it was created by Welles Wilder more than 40 years ago. This indicator is perfect to take advantage of movements that will always be present in the market, as in the case of pullbacks. The RSI determines when the price of a digital asset is far from its original level, so traders can choose an entry point when the price is about to undergo a correction.

Considering that prices in the crypto market (and basically all other markets) suffer pullbacks after a bullish or bearish phase begins, the RSI can be very useful. The scale of this indicator goes from 0 to 100 and if the asset is below 30, it is being oversold and if it is above 70 it is overbought.

Bollinger Bands

It is an indicator created by John Bollinger in the 80’s and indicates an estimated price range throughout its journey. We can think of Bollinger Bands as an oscillating meter that indicates high / low volatility in a range or even if the market is facing overbought/oversold conditions.

There is an upper band, a moving average and a lower band that estimate the possible price movement in any timeframe according to fluctuations.

Moving Averages

In these top 4 indicators to trade cryptocurrencies, Moving Averages could not be missing, which can be defined as lines that, after having calculated the price path for a certain time, indicate the possible next price movement and even works as support and resistance levels. Moving Averages will be used depending on the trader’s strategy based on short or long term plans.

For more crypto content/trading signals, Join Altsignals and start leveraging the knowledge to your advantage.

AltSignals Team

Proficient authors guiding you with transparency, integrity and education through the finance international markets

The AltSignals writing team consists of experts dedicated to the world of finance and technology, with a particular focus on cryptocurrencies and forex. Our writers bring a broad range of knowledge and experience, cultivated through years of arduous and direct involvement in financial markets, as well as intense technological collaboration.

Editorial approach

At AltSignals, we believe that transparency and education are the key to empowering our readers. Therefore, our content is meticulously researched to ensure its accuracy and thoroughness. Each of our articles is created with the aim of providing educational insights and in-depth analysis, helping both beginners and experienced traders.

Commitment to quality

Integrity is certainly the foundation of our editorial process. The team follows rigorous journalistic standards with careful review, all to ensure that each publication is meticulously researched and exceeds our readers’ expectations.

Our mission is to provide analysis that informs as well as guides users and enthusiasts through the complexities of the cryptocurrency and forex markets. In line with our motto of “quality over quantity”, we guarantee that only the highest quality trading signals are published.

In addition to our commitment, which extends beyond the simple transmission of useful information, our in-depth analysis focuses on profitability and effectiveness squarely, avoiding the common industry habit of prioritizing profit over accuracy. Our traders are strategic experts who offer personalized help to those seeking worthwhile portfolio management tactics.

Diverse knowledge

Our authors are proficient in a variety of topics across the financial spectrum, from emerging trends in blockchain to the nuances of forex trading. This diverse range of knowledge allows the team to cover several topics, ensuring our content is always comprehensive and deeply specialized.

Interactivity and support

We understand that the world of trading can be complex for many. Therefore, alongside producing informative articles, our team is also committed to interacting with the community. Through comment sections, forums and direct support, we encourage our readers to seek clarification and sharpen their understanding, promoting an environment of continuous learning.

Future vision

Looking to the future, the AltSignals writing team is imbued with a vision that transcends regular publishing, and continues to dedicate itself to discovering and reporting on the latest innovations and trends available in the market. We are constantly seeking to improve our skills and expand our knowledge, with the ultimate goal of being a reliable and respected source in digital financial journalism.

There is great commitment to discovering and reporting not only the latest news and trends in the market, but also to equipping our readers with the tools they need to navigate volatile markets with confidence. We firmly believe that, with the support of an appropriate platform coupled with accurate guidance, our readers and traders can turn market volatility into a competitive advantage.

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Follow AltSignals to stay up to date with the latest developments in the world of finance and technology, and explore how our insights can help improve your trading strategies. The AltSignals team is here to guide you through the exciting, dynamic and challenging world of financial markets.

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