Cryptocurrency trading has been in high demand in recent years, as digital currency is considered the most trusted and proven option compared to other options. When trading cryptocurrencies, there are many different factors to consider. You should read more information if you don’t know how to choose a top crypto exchange for trading. You must evaluate several tools that help make the trading process more understandable.
Indicators are critical when trading on the cryptocurrency exchange. These are such indicators that allow for assessing the progress of a project. Indicators are a tool that will enable you to choose a cryptocurrency for buying and selling. Evaluating these indicators, one can understand the advantages and disadvantages of certain types of cryptocurrencies over a certain period. Also, using indicators, you can determine profitability and other benefits.
For technical analysis of cryptocurrencies, traders use different indicators in their characteristics and features. It is not necessary to be a professional to understand the qualitative attributes of investment assets. It is required to carefully read the indicators described below, which allows you to select the best investment decision for investments.
MACD is one of the critical parameters used by trading platforms to estimate the difference between two moving values. The corresponding columns show this value. When evaluating, the exponential parameter defines the input and the difference between the average and the indicator line.
This indicator is helpful for the technical analysis of digital currencies. Most analysts in trading are actively involved in the study of this parameter. This characteristic describes the ability to maintain the current trend and the power and flexibility for possible changes. Among the fundamental rules for changing this indicator are the following:
- When the line is above the zero value, the general direction of the trend is down;
- If this figure rises, then the uptrend has more potential;
- When new values form during a price change, the line simultaneously falls, leading to a fall in the total price. This effect is called the divergence of the current trend, which warns of a possible decline in value.
MACD is the most beneficial financial instrument with a large amplitude. It is suitable for forecasting at all time intervals. With too much buying and selling, changes and intersections of the lines are possible. This scoring parameter is also often used in combination with other values to improve the efficiency of the scoring.
RSI is one of the critical trading volumes often used in the market. With it, you can assess the current situation in trading a particular currency. This parameter calculates using a unique formula that considers the average cost value for a certain period.
This value is usually on a separate graph. Most of the possible programs make it possible to evaluate the development of the RSI depending on the exchange rate. When calculating the index values, the corresponding points are displayed, which may be in the related positions.
This indicator is the most popular when buying or selling a specific trading pair. This auxiliary parameter can be used as the main one to evaluate all the main features of trading in a particular cryptocurrency. Bollinger Bands indicator includes several leading indicators — the middle, upper and lower bands, which determine possible deviations from the base value.
This key figure helps to calculate specific periods. Suppose the curves are located close enough to each other on the chart. It means that the market is accumulating the necessary strength for a profitable purchase or sale of a currency. A break at the top of the line symbolizes a bargaining opportunity, and the market is increasing.
If the trade reaches a low value, it must be closed to reduce the possible risks of losses. The regulation of the procedure of this indicator resembles gambling, namely the placement of bets with minimum and maximum values.
One of the crucial parameters for performing technical analysis on a coin is its volume. It includes several methods that allow you to predict the future rate of a cryptocurrency asset on favorable terms. Technical analysis can predict the optimal combination to buy and sell cryptocurrencies.
The price of help, in this case, is determined by repeating patterns. OBV indicator allows you to assess the popularity of a particular cryptocurrency in the market. Each cryptocurrency has its trading volume, which reduces the risk of fraud.
MYC trading indicator includes characteristics for several parameters at once. The trend line lets you track the leading trading indicators when working with various cryptocurrencies. It is essential to determine the exact input value when planning contributions.
Before trading cryptocurrencies on WhiteBIT, you should familiarize yourself with the key trading indicators. For successful trading, it is essential to consider all technical indicators to avoid risks and maximize your profits.