For my first post I want to talk about trading indicators. So I will present you most popular trading indicators used by cryptocurrency exchanges, so when you learn how to read these indicators you will be succesful trader.
Most Popular Trading Indicators:
MACD (Moving Average Convergence-Divergence)
This trading indicator helps to identify strength, direction, momentum and duration of the trend for a coin’s price. It is one of the most effective momentum indicators.
SMA (Simple Moving Average)
Simple as the name suggests, it is basically the average price calculated for the chosen time frame.
EMA (Exponential Moving Average)
Another variant of moving average which focuses more on recently changed prices.
RSI (Relative Strength Index)
It is a momentum oscillator which measures the change of recent hike and drops over a specific period of time.
ADX (Average Directional Index)
The calculation of this indicator is based on the range of moving average price’s expansion for a specific time period. It is used to determine whether a particular trend is strong or weak.
Stochastics
As per the name, it is the relation between current prices to its price range for the given period of time. It can help you determine the point of time when the trend will end.
Most Popular Trading Charts
Line chart
The most basic type of chart which is used to monitor closing prices. Here, the line connects a series of closing prices over any time period.
Candlestick chart
The candlestick represents the open and close of a day’s trading. The regularly occurring patterns helps to predict short-term direction of the price.
Bar chart
Again a familiar name and concept similar to that of candlestick (of day trading). It is used to illustrate the movement of price.