Moving averages works great for trending markets. Basically they would help you alot when we started to rally from $14K all the way to $42K. However after we peaked in $42K it wouldn't help you anymore. Basically you would get chopped back and forth between going short or long. The same is for stock markets or forex. They work great if there is a strong trend, however that trend usually ends and either we trade sideways for months or a bear market starts.
If you can confirm the start of the bear market you can use moving averages to short again. So the issue is not that they are not reliable, they are reliable as long as you trade them correctly. Basically if you got other indicators telling you to long, then use moving averages to buy. If you got indicators telling you to short, then use the indicators to sell. No TA out there is ever 100% accurate and it will never be.
Topic: Indicators as suitable strategy (Read 189 times)
In simple terms, an indicator is one of the features or features that become a benchmark in analyzing movements. in this case according to the understanding and each strategy is taken into consideration to take a position based on a predetermined hypothesis to take a stop loss. and we become very aggressive according to our understanding in making decisions.
So is right that traders have a predicting application or machine that indicates the feature of crypto market trading because I'm trying to understand the concept, looking at these word you captured simple terms, obviously it looks as Eve its a device that regulate bitcoin btc values especially when ever lost wants to occur in life of cryptocurrency, I think is all these trading analysis is determine by the marketcap of cryptocurrency. Moving average and Moving average convergence divergence has helped my trade in the foreign exchange market. Although I don't trade indicators in isolation I combine them with candle sticks and chat patterns. The structure of the market along side price action determine the market trend which could be confusing at some point. But with a proper understanding of indicators especially moving average and MACD one can predrict the future trend of the market and place his trade based on such technical analysis.
Indicators also can be used to determine a best position to take profit and apply stop loss based on the chat after proper technical analysis has been carried out
I think it's about finding a strategy that suits you. Chances are you will fetch losses with a million dollar strategy developed by other person because you don't have the risk aversion or mental strength that person has. So it's always better to create a strategy. Create a screener based on the indicators you use and use rest of indicators or price action as a confirmation. I have generally seen trading gurus recommend using a maximum of 3 indicators apart from Volumes. Keeping more indicators will just make the job more confusing as most of the signals would not point towards the same direction. Keep your setup simple and back test it multiple times Indicators also can be used to determine a best position to take profit and apply stop loss based on the chat after proper technical analysis has been carried out
Technical analysis may work well in the cryptocurrency market. If the market was in a normal situation where the corrections were made and the market stabilized for a few days, then you can rely on averages for a better interpretation and a good prediction.
In times of extreme price movement, those technical analyzes fail, and then news and liquidity centers are the ones that determine the highs and lows that seem difficult to predict.
The failure of technical analysis is also influenced by fundamentals which are inversely related. The market manipulation that is carried out will greatly affect it. Many whales enter the market at will to make the market price not technically compatible. Actually technical analysis only helps make market price predictions, but it is uncertain because there will be some inaccuracies. Like the current state of the bitcoin market that is uncertain. Many whales play and manipulate the market as they please in order to get a lot of profit. In times of extreme price movement, those technical analyzes fail, and then news and liquidity centers are the ones that determine the highs and lows that seem difficult to predict.
Moving average and Moving average convergence divergence has helped my trade in the foreign exchange market. Although I don't trade indicators in isolation I combine them with candle sticks and chat patterns. The structure of the market along side price action determine the market trend which could be confusing at some point. But with a proper understanding of indicators especially moving average and MACD one can predrict the future trend of the market and place his trade based on such technical analysis.
Indicators also can be used to determine a best position to take profit and apply stop loss based on the chat after proper technical analysis has been carried out
Indicators also can be used to determine a best position to take profit and apply stop loss based on the chat after proper technical analysis has been carried out
These indicators are good if you catch them on the trend. Meaning that they play along with trend if the trend is still onand stable but if the trend change either due to resistance or support level, then they find it very difficult to be follow but with stoploss you are good for whatever tide that come in the market. You need to include Fibonacci in you strategy to help you direct the the market.
Technical analysis may work well in the cryptocurrency market. If the market was in a normal situation where the corrections were made and the market stabilized for a few days, then you can rely on averages for a better interpretation and a good prediction.
In times of extreme price movement, those technical analyzes fail, and then news and liquidity centers are the ones that determine the highs and lows that seem difficult to predict.
I prefer to call it 'market direction' for some reason since, to how I observed the market, there are cryptos mostly the big ones, having the same movement not in terms of their market price but the stopping and moving phase. But still, it won't determine what will exactly happen. Predictions, speculations and the likes are subjective. One may assume that the price will go up, and one may go with the other way around. It will still be a guess at the end of the day. The market itself is unpredictable which makes predictions a not so reliable source. But what can we do about it? Nothing that much, just analyse and make your own investment decision or action in which you will be able to avoid regrets eventually. In times of extreme price movement, those technical analyzes fail, and then news and liquidity centers are the ones that determine the highs and lows that seem difficult to predict.
Technical analysis may work well in the cryptocurrency market. If the market was in a normal situation where the corrections were made and the market stabilized for a few days, then you can rely on averages for a better interpretation and a good prediction.
In times of extreme price movement, those technical analyzes fail, and then news and liquidity centers are the ones that determine the highs and lows that seem difficult to predict.
In times of extreme price movement, those technical analyzes fail, and then news and liquidity centers are the ones that determine the highs and lows that seem difficult to predict.
Political analysis and projection trend towards underestimated and misunderstood. Which could mean the biggest gains are to be found there. Being able to properly predict and position to leverage the changes Trump or Biden's administration would make in advance. And what the long term effects would be. This is an area the majority of traders would appear to avoid. Yet it could be the most important in terms of trading safely and profitably.
In theory, insider trading is illegal. In reality, there could be many in the inner circle of politicians and elites who make mountains of cash, simply through knowing in advance which policies are being rolled out and when. Having access to that type of inside info is another neglected area for trading.
In theory, insider trading is illegal. In reality, there could be many in the inner circle of politicians and elites who make mountains of cash, simply through knowing in advance which policies are being rolled out and when. Having access to that type of inside info is another neglected area for trading.
MA is a good indicator in Forex, but I'm relying much more on news and speculations in crypto. Good sources are the popular (massive) Twitter accounts, and Coindesk and other news sites. Another indicator is when a new blockchain is going from Alpha to public testing to live.
Moving average and Moving average convergence divergence has helped my trade in the foreign exchange market. Although I don't trade indicators in isolation I combine them with candle sticks and chat patterns. The structure of the market along side price action determine the market trend which could be confusing at some point. But with a proper understanding of indicators especially moving average and MACD one can predrict the future trend of the market and place his trade based on such technical analysis.
Indicators also can be used to determine a best position to take profit and apply stop loss based on the chat after proper technical analysis has been carried out
Indicators also can be used to determine a best position to take profit and apply stop loss based on the chat after proper technical analysis has been carried out
Indicators can not predict the future they just tell you about the current market situation. It's up to you how you will process and use that data to take your entry. Also rely on just an indicator blindly is not a very good idea because every trader has their own strategy and indicators. So when your indicators saying to take long someone else's indicators may be indicated a possible short entry.
But with a proper understanding of indicators especially moving average and MACD one can predrict the future trend of the market and place his trade based on such technical analysis.
Indicators also can be used to determine a best position to take profit and apply stop loss based on the chat after proper technical analysis has been carried out
Indicators also can be used to determine a best position to take profit and apply stop loss based on the chat after proper technical analysis has been carried out
indeed this can happen along with the times and technology in analyzing market movements. However, for the time being, this is still an uncertainty, and is not yet fully considered relevant. we enter the market and the position is not in accordance with our predictions and analysis, so it proves that market movements take place naturally ..
An indicator is different than a strategy, so the title is wrong.
As the name implied, indicators indicate the market trend leaning to bullish or bearish sentiment. Let's say the market is bullish so that even newbies can get lots of profit; you still need a good strategy to outperform newbies.
Indicators work to some extent but cannot give accurate predictions every time because of random walk in the market.
As the name implied, indicators indicate the market trend leaning to bullish or bearish sentiment. Let's say the market is bullish so that even newbies can get lots of profit; you still need a good strategy to outperform newbies.
Indicators work to some extent but cannot give accurate predictions every time because of random walk in the market.
Moving average and Moving average convergence divergence has helped my trade in the foreign exchange market. Although I don't trade indicators in isolation I combine them with candle sticks and chat patterns. The structure of the market along side price action determine the market trend which could be confusing at some point. But with a proper understanding of indicators especially moving average and MACD one can predrict the future trend of the market and place his trade based on such technical analysis.
Indicators also can be used to determine a best position to take profit and apply stop loss based on the chat after proper technical analysis has been carried out
Indicators also can be used to determine a best position to take profit and apply stop loss based on the chat after proper technical analysis has been carried out
I agree with you, moving averages are great way to get information from the past for free. Looking at charts is a great tool for trading, especially the 90 day and 60 day moving average is a great tool to get signals from the market. For me, these two give a general trend over the last 3 month when comparing them to the 10 day average.
I don't even make permanent benchmarks in my trades every time I enter the market and see a situation and conditions that are relatively different from the strategy I used yesterday. So in my opinion there are many indicators that often trigger us to be careful and analyze them many times.
In simple terms, an indicator is one of the features or features that become a benchmark in analyzing movements. in this case according to the understanding and each strategy is taken into consideration to take a position based on a predetermined hypothesis to take a stop loss. and we become very aggressive according to our understanding in making decisions.
There is not any specific indicators to use for any market. Any trader use his own strategy based on his thoughts and the market, on any strategy you can use some indicators but this is what you need to find out yourself. Some traders will not use the indicators at all (including me) and use only use the classic price action.
We can always watch or read news articles about the latest happenings in cryptocurrency, take note that the sources should be multiple so as not to prevent a tunnel vision when it comes to something, see all the angles in the story. We can't just base everything we do on the market with just our own thoughts, we have to understand we can't move the market alone so we have to watch out for trends, remember that popularity of a market can be a good or bad indicator if the trend is good or bad. Each traders has different indicators use in trading. Moving Average is one of indicators I always use, too. But aside from that I use stochaistic RSI and RSI alone. I don't want to use many indicators as others like 5 to 6 indicators as it will just give me some confusions as each indicators has different approach and styles.
So far Im having smooth trades with this TAs that I'm using. Since RSI gives a good signal when to enter the market, it confirms in stoch RSI. It actually shows the previous and current market strength and weakness of price market. Bollinger bands was one of the indicators that Ive used but decided to remove that already.
We can definitely make a good profits whatever indicators we are going to use. It's how we technically read it in a right way and it's how we handle market predictions in our own.
So far Im having smooth trades with this TAs that I'm using. Since RSI gives a good signal when to enter the market, it confirms in stoch RSI. It actually shows the previous and current market strength and weakness of price market. Bollinger bands was one of the indicators that Ive used but decided to remove that already.
We can definitely make a good profits whatever indicators we are going to use. It's how we technically read it in a right way and it's how we handle market predictions in our own.
Same here. I always use RSI + EMA (50) and (200) for visible divergence, plus candle stick patterns for more confirmations. Crossovers is effective to me but sometimes it doesn't go along with my plan, so the winning percentage is just like 70% I guess, it also depends on my mood. I don't know if it is just me but sometimes it feels like I'm on a zone when I'm trading where I'm doing really good.
But of course the more strategy you know, the better you'll do in Trading.
E D I T: I think this should be move on Trading Discussion
There is not any specific indicators to use for any market. Any trader use his own strategy based on his thoughts and the market, on any strategy you can use some indicators but this is what you need to find out yourself. Some traders will not use the indicators at all (including me) and use only use the classic price action. But generally, I see on crypto market, people are using Ichimoku and MA mostly plus an oscillator to find the divergence on chart. These are all depend of your own.
Aren't these indicators very helpful for oneself to presume what's the most likely happen to the market? The choice to whether to use or not to use any indicators for trading depends on ourselves. Also the choice of what indicators we would choose depends to our own.
What I'm trying to imply is that, somewhat, if we happen to understand these indicators efficiently and effectively, there's high chance for us to be more successful on our next trades. Knowledge is everything. But understanding these indicators is not easy. It would take a very long time for someone to be efficient on understanding these indicators.
There is not any specific indicators to use for any market. Any trader use his own strategy based on his thoughts and the market, on any strategy you can use some indicators but this is what you need to find out yourself. Some traders will not use the indicators at all (including me) and use only use the classic price action. But generally, I see on crypto market, people are using Ichimoku and MA mostly plus an oscillator to find the divergence on chart. These are all depend of your own.
Each traders has different indicators use in trading. Moving Average is one of indicators I always use, too. But aside from that I use stochaistic RSI and RSI alone. I don't want to use many indicators as others like 5 to 6 indicators as it will just give me some confusions as each indicators has different approach and styles.
So far Im having smooth trades with this TAs that I'm using. Since RSI gives a good signal when to enter the market, it confirms in stoch RSI. It actually shows the previous and current market strength and weakness of price market. Bollinger bands was one of the indicators that Ive used but decided to remove that already.
We can definitely make a good profits whatever indicators we are going to use. It's how we technically read it in a right way and it's how we handle market predictions in our own.
So far Im having smooth trades with this TAs that I'm using. Since RSI gives a good signal when to enter the market, it confirms in stoch RSI. It actually shows the previous and current market strength and weakness of price market. Bollinger bands was one of the indicators that Ive used but decided to remove that already.
We can definitely make a good profits whatever indicators we are going to use. It's how we technically read it in a right way and it's how we handle market predictions in our own.
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