Topic: What are the best indicators for following trend in cryptotrading? (Read 314 times)

That would seem like a good option but it is not, the reason for this is that by the time all the indicators you have selected indicate that a particular trend is present, most if not all of the trend is already over and you have no chance of taking advantage of it anymore, so this idea that our trading risk can be diminished in this way is not wrong, but by decreasing the risk you are also decreasing the size of your wins, so this idea is too conservative and unprofitable for my tastes.

I don't use indicators personally
But would recommend you use leading indicators than lagging indicators but you shouldn't rely solely on it to determine any of your move in the market,it should be treated as a confluence not a determinant.
This would go a long way shaping your trading style.

One indicator cannot gives you the exact result. You can use multiple indicators to verify the trend. And if all indicators sows the same result. It means you can choose this trend to open a trade. If all indicators that the market is in oversold position then take a long position and if the indicators says the market is in over bought condition then open a short position.

I completely agree that success in cryptocurrency trading hinges not on rapid actions but on well-informed and deliberate decisions. Employing various indicators to confirm analyses enhances trade accuracy, reducing risk and leading to steadier gains. This careful, validated approach, prioritizing depth over speed, can ultimately prove to be more beneficial for achieving consistent profitability, and effectively manage the balance between quick wins and sustainable success.

I would not say that a single indicator is best to catch the trend, use RSI, MACD and the others too but dont depend on them too much, see the charts and how they have been performing over the days and use that to make the prediction. Remember that no indictor is 100% correct and each is applicable in a different context.

Every other day you might find a new thread in this section saying that they found this indictor as perfect or today they found this as perfect. It only shows that there is nothing called a perfect or best indicator.

For trend trading in cryptocurrencies, I would recommend the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI), alongside your Money Flow Index (MFI). MACD helps identify momentum and trend direction, while RSI indicates overbought or oversold conditions. Also consider adding Exponential Moving Averages (EMAs). They can help you understand trend strength by smoothing price fluctuations. This combination offers a solid framework for capturing trends, which is essential in the fast-paced crypto markets. Balancing these indicators can improve your decision-making, while providing insights beyond what MFI alone can provide.
If you would like to discuss this further, you can contact me via my Discord: https://discord.gg/dCvaBZWNcG

This is the right answer, there are no people who could figure something out from just a single indicator, and if they say that they can then they are lying. There are so many ways to look at the market and so many ways to confirm what you looked at. Not only you should use multiple indicators but you should use multiple more to confirm what you think is true as well.

This may slow you down, and it may look like you are too late to everything, but when you are certain then you are certain which would make you a lot more money. It is not really about being fast, some people like being fast and they do make more money and quicker when they are right but also they are the ones who will end up making a loss a lot more often.

I would not advise you to go for any indicator to determine the trend of the market. Usually, if you know the price action, and you are able to mark the high and low plus the support and resistance of the market, then it is very easy for you to identify the trend of the market.

In general, you should know that price never moves in a complete upward or downward direction in a straight line. If the price action is making higher highs and higher lows then we are in an Uptrend and if the price is making a lower lows and lower highs, then we may call this as a market in an uptrend. Once you identify the trend, then it is important that you also know how to trade a trending market.

Candlestick patterns itself is an indicator infact the best indicator if you can study it because it tells the true live picture of the price especially when price reached a major Suppoort and Resistance of course there is plenty resources online for studying candlestick patterns, however majority of the so-called trend indicators lagged behind the price because they are based on past price history thus they are usually not effective and reliable because their are instances where the price had reached the end of a trend that is when some indicators give signals once a trader trigger a buy or sell the price would start to go against the trader

Any trend indicator that can be used on other markets can be used to trade the market of cryptocurrencies, however since trends move so quickly I will advice you to use a shorter period to calculate the indicator, so if on the stock market you used an EMA with a time period of 20, maybe it could be a good idea to reduce this number to 14 or another number you feel comfortable with, this way you will be able to react faster to the changes on the market and move to the right side of the market, capturing more profits in the process.

There are various analyzes in trading, such as MACD, RSI and many more.  Using just one indicator will lead you to a dead end.  Each analysis is a separate method, and has a different probability value.  You should try some and conclude for yourself how they work.  You have to be dynamic, using certain methods for certain cases.  Trading is not something that can be simply suggested, everyone has different views and may be wrong several times.  Building your own style is important in trading.  You have to analyze based on your data so that you will not worry about your decision.  You have to be able to see the trend so you can follow it and you will win. Some think that you can see on Youtube, can't always easy like their said. You must try with your hands to proof it.

Well, you do have a point, but that's why the OP's asking for different kinds of indicators to follow for trading. It doesn't mean that we will stick to that; in fact, there are no specific signals that will work every time. That's why it's best to know many kinds of indicators so that they can help you in plotting your technical analysis. Honestly, I've learned quite a few indicators or trading methods, and sometimes it takes more than just one trading strategy and indicator to plot an analysis in the market. As we know, the crypto market is volatile. That's why you can learn a lot of strategies, indicators, or anything else that could help you increase the accuracy of your analysis to trade efficiently. The most important thing is to adopt, for example, this kind of topic. Because of this, you can gather and discover different kinds of indicators or strategies from different traders, and then it's up to you to study and apply them in real trade.

Use Super trend indicator and if you can use Trend score on Glassnode, you will not miss a trend.

Glassnode's Accumulation Trend score
Their introduction video on Youtube. Bitcoin Accumulation Trend Score for tracking Whale Buyers (On-chain 101).
When you see purple, it's time for high risk and you have to consider of exit the market or don't spend money to participate in.

The universe of technical indicators is huge and even after more than 5 years of trading I haven't found that one indicator that always works and gives the best possible trading signals. I do like to a look a wider range of indicators and will filter some out when there are conflicting signals. The problem with trading data is that there is a lot of noise in the market. Especially when looking at the small intervals like 1 to 5 minute price data, we will find a lot of short term trends that are not real. Which is why I like to look at moving averages based on 10,30,60 and 90 days. This has been probably my single most useful trading indicator. Because it gives different trends based on the time frame and I can quickly identify if the market is changing long term. From time to time it can also help to look at shorter data and use intra day trading signals. But I would always recommend to double check any signal and not to trade on one indicator alone. There is a reason for having all these different technical analysis books recommending a different signals. As long as it's for free and we can verify the data, I would it include it in your initial analysis. In general I would recommend to have a mix of short term, medium term and long term indicators that all work together.

To be honest there is no single strategy which you can rely on forever as it's an evolving thing wherein we need to keep testing numerous indicators to apply the one which is suitable for the market trend. Never ever stick to any particular indicator but rather do lot of back testing with multiple ones and find the best one as per market trend. I am would repeating what most of the users would quote which is DYOR and don't fall for any premium channels impersonating to be experts.

In my opinion, all indicator tools are useful and very helpful in analyzing trends. And it all depends on our habits in using and utilizing it. I myself more often use the WR, StorchRSI, RSI, MACD, Fibonacci indicators and sometimes MA, SMA and BB. Indicators are also situational, there are some indicators that don't even match market movements. perhaps due to manipulation or other factors.

Maybe when it comes to trading, indicators are not enough. There are several other things that can help run the analysis, such as candle shapes or chart patterns. DYOR

Is it like changing of trends? Because there are a lot but the first thing that has come to my mind is ADX. It's pretty straight forward and easy to do. I like it being an add-on to my Bollinger bands in trading. I automate it as well with Gunbot.

If we are guided by the indicators that we see well on the Telegram channel, generally in my opinion they are not good, because most of the indicators shown are just bait, doing your own research is much better than being guided by others, whatever decision you make with research You will be more satisfied, even if you have to suffer, at least you will get valuable experience

When I'm trend trading I follow what trend is becoming popular among traders and one way to notice this is by the trading volume of the projects under that trend, it's not easy to know what the next trend is going to be or which trend is going to become more popular but you can watch the type of tokens exchanges are listing and the trends those projects are a part of and begin to monitor the trend more closely and pick some projects that you believe will be winners in that trend to trade for profits.

Nobody knows what the next trend will be and any individual making a bold statement of a trend been the next trend is only guessing but you can monitor multiple trends so you don't miss the next trend when it happens. I love trading trending cryptocurrency as they have more volatile and volumes therefore there'll be more chances to make profits from my trade but I also understand the risk involved.

I agree with you that signal opportunities should never be used in crypto trading. I have seen that there are many Telegram groups from where crypto trading signal indicators are provided. We should give priority to our own efforts in trading. I used to use signal indicator from telegram group once while trading binary.

But in the beginning I got very good signals and several times my friend and I got good profits. But due to one wrong signal one day we lost all our gains since then we stopped taking telegram group signals and still trade according to our own efforts.