Indicators for cryptocurrencies, market analysis, trend determination
The cryptocurrency fever, which has caught a huge number of people, has once again proven that the market simply does not tolerate unprofessional and superficial traders.
The enormous excitement about record growth rates, which was spread by the media and on various channels of YouTubers and bloggers, attracted a huge number of ordinary people to the market.
Information was received from all sources that it was necessary to buy cryptocurrency.
The most interesting thing is that people could not even imagine that the crypto currency market could move in a direction other than up.
Indeed, almost everyone was able to make money on the wave of excitement, but no one talks about how many lost huge money after the market suddenly changed its course.
In fact, cryptocurrencies are practically no different from any other trading asset on the movement of which traders speculate.
Selecting a cryptocurrency indicator. Brief introduction to some of them
Beginners conduct their trade through dubious exchanges that trade only in digital currency.
As a rule, they completely lack any platform, with the exception of a bare price chart. At the same time, most forex brokers with an excellent reputation offer cryptocurrency trading not only safely, but most importantly through a platform where you can find indicators for cryptocurrencies.
As we have already noted, this market is actually very similar to the foreign exchange market, with the exception of volatility . However, the structure of price movement itself remains the same as for other assets.
Therefore, all scripts in the MT4 trading terminal, as well as custom tools created for this platform, are the very indicators of cryptocurrencies.
Naturally, with a huge number of scripts, at first it will be very difficult to decide on the ones that are right for you.
Therefore, we suggest getting acquainted with the key ones that are worth paying attention to. 1. Bollinger Bands
Bollinger Bands are one of the most suitable indicators for cryptocurrencies.
The fact is that this indicator is inherently an extremely versatile tool, which allows it to be used both in a flat, which we can recently observe in this market, and in a trend. The script itself perfectly displays to us the price range within which the digital currency moves.
The range can be traded both for a breakdown of its borders, if we are talking about an established trend, and for a rebound from the borders, especially if we are talking about a sideways market.
Therefore, a buy position should be opened when the price touches the upper limit, and a sell position when the price touches the lower limit of the range.
The central line will allow you to clearly assess the global direction of the market without any noise. More information about Bollinger Bands - http://time-forex.com/tehanaliz/polosy-bollindgera
2. ADX
ADX, like the Bollinger Bands described above, is also a complex trend indicator.
Its key benefit when applied to cryptocurrency is its unique ability to determine the strength of a trend, something that other tools cannot boast of.
ADX also perfectly shows entry points when the short-term trend changes. So, if the green line of the indicator crosses the red line and appears below it, we open a sell position, and if the green line crosses the red line and appears above it, we open a buy position.
The blue line of this instrument is a measure of the strength of the trend. The higher this line is at the time the signal appears, the stronger the potential of the transaction, since the signal appeared at the peak of trend activity.
In conclusion, it is worth noting that the digital market is as unpredictable as the foreign exchange market.
That is why those who are beginning to be interested in this type of asset should take off their rose-colored glasses and finally realize the fact that effective trading can only be achieved with the help of various tools, and especially with the help of indicators for cryptocurrencies.
You can download the trading platform with already installed scripts from one of the cryptocurrency brokers - https://time-forex.com/kriptovaluty/brokery-kriptovalut