Hi Friends,
Welcome to my another post. I hope you all are doing well. Today I like to explain about A/D technical indicator and explain how to add the A/D indicator on our crypto chart. I hope it will help you all.
How to Add A/D indicator
To add technical indicator in binance you should open the crypto chart through the market tab and after that, you will see the below page. In that, you need to press the technical indicator option.
First option is shown Accumalation/Distributor indicator (A/D indicator) please select that option.
As you see in the below image it will added below the price chart.
You can also select the indicator and drag it to the price chart so it will be added to the price chart which helps you to analyze the data of supply and demand.
Now you will know how to add the A/D indicator in your binance price chart. Now you will think what is the use of the A/D indicator so I will explain that how can able to know about the price will go up or not. Let's how you know the entry point using the A/D indicators.
Use case of A/D indicator
As you see the resistance in the A/D indicator but you didn't see the same in the price chart. It clearly shows that 2 times it tries but resistance will face on the same time price chart testing their support. Once it breaks the support that time you will take short trade and that will be more profitable for you.
As on other hand, the A/D indicator helps you in the divergence. It means it will help you to predict the reversal of the market trend. So how can we identify? let's see the below image.
As you see in the below image where our A/D indicator previously drop and on the opposite side price is going up and both the lines intersected it clearly shows that there will be you will see the price drop It give you signal very early so you will able to place the short trade in such case and makes profits on your most of the cases.
Now we see in the below image is the price is kept falling till the support line but our A/D indicator line way early start going up and intersect both lines at that time you will have the time to place a buy order as you are early detected using the A/D indicator reversal and that will give you profits.
As I am showing the A/D indicator information and I am also using this indicator with price action and RSI indicator to make profits on my trading. This is one of my strategies for intraday. Before doing any trade you should have to study whole the patterns and price action because trading will also lose your money.
Happy Trading!
Warm Regards,