3/14/2023 0 Comments Crypto signals![]() ![]() A high volume move has a lower chance of being a false-breakout. Volume breakouts add conviction to a large price move, and show that there's significant support behind the recent swing. Volume BreakoutsTrading volume is usually represented as a bar chart below the price chart of an asset. Our alerting platform also offers crypto price breakout alerts across entire markets spanning dozens of exchanges. To learn more about reading crypto chart patterns, read our guide. Price breakouts are usually the culmination of a chart pattern confirming a trend. Price breakouts occur when lines of support and resistance are broken, typically on high volume (more on this below). Bitcoin and altcoins in particular are an incredibly volatile class of assets. Price BreakoutsVolatility is another important statistic when analyzing crypto assets. It's usually calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. It is a trend-following momentum indicator that shows the relationship between two moving averages. MACDMACD is an acronym standing for Moving Average Convergence/Divergence. For example, if an asset's price has recently been making higher highs, but the RSI has been making lower highs, it could signal that it might be a good time to start selling. A divergence warns that the current price trend may be weakening. Some common moving averages include the 50-period and 200-period moving averages.ĭivergenceWhen the price of an asset is moving in the opposite direction of a technical indicator, this is known as a divergence. It occurs when a short-term moving average crosses below a long-term one. Golden CrossA golden cross occurs when a short-term moving average crosses over a long-term moving average to the upside.ĭeath CrossA death cross is the opposite of a golden cross. An Exponential Moving Average (EMA), on the other hand, places greater weight on the most recent data points. A 50-SMA, for example, is the average of the last 50 price values for an asset. Moving AverageA Simple Moving Average (SMA) is calculated by adding recent prices and then dividing that by the number of time periods. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. RSIRelative Strength Index (or RSI) is a momentum indicator that measures the speed and change of price movements. Since derivative exchanges like BitMEX, OKEx or Binance Futures allow traders to enter short positions, a sell signal is actionable even if one does not already own the asset. A sell signal implies that a crypto asset looks overbought and is ready to decrease in price. A buy signal means that a crypto asset looks oversold and ready for a short-term gain. What are signals?Crypto signals are direct recommendations (usually based on one or more indicators) to buy or sell a position. ![]() ETH can look oversold on one chart, and not on the other. That is, the chart of ETH/USD will produce different stats than ETH/BTC. It's worth noting that most indicators will vary depending on the crypto trading pair being examined. ![]() A few examples of these are explained below. It's not unusual to look at several indicators simultaneously when trying to form an opinion about an asset.Īn oscillator, for example, is a specific kind of indicator that varies over time between a min and max value. What are indicators?Crypto indicators are metrics used to help predict short-term overbought or oversold conditions. While everyone develops different strategies and systems that work for them, it's useful to know the basics of all major schools of thought. Learn about commonly used signals and indicators for when to buy bitcoin and other crypto assets.Ĭrypto traders use a variety of different information to help inform their actions. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |