What are the factors you check before investing in crypto assets? Many people have different opinions about crypto trading. I started trading forex around 2016 and I remember the first technical indicator I used was the Relative Strength Index (RSI). My instructor back then explain that I should use the RSI as the overbought and oversold indicator and he further explained that whenever an asset is down below 30RSI, it is oversold and it will go up and when the RSI is over 70; it is overbought and will drop.
He included many indicators, and I tried to trade with then and all the results I got were failures and frustrations. I used the factors for long-time trading and some short-time trading, but the result was a failure. I started digging deep to know more about how to trade to get results. I found out that 30RSI and 70RSI are not enough to determine overbought and oversold and I must consider other factors like support and resistance because sometimes, an asset might be within the range of 30 or 70RSI for a long time and will be against the time for the trading.
When I also started trading cryptocurrency. My crypto tutor said I should check for token all-time high to make buy and sell decisions. On the surface, this sounds valid because checking the all-time high will allow the trader to know the past highest point of a token and maybe it will still reach and pass it again. So, I followed this and realised that some token’s all-time high will remain ATH till the end of the days. Some tokens only rose because of some glimpse and they will remain in the ATH because they do not have the use case to appreciate.
These are just two out of many fake guides I have received on this journey of trading. I do not think there is a trading factor or guide that is 100% right, because unseen or unknown factors can change many things.