crypto price indicators, price indicators, moving averages

Main Price Indicators in Crypto Trading

Crypto trading entails playing the market through speculation of price movements or direction. The traders buy or sell an underlying crypto coin through CFD exchange. Therefore, a sharp focus on the momentum of assets is necessary. From a technical point of view, traders must pay close attention to the Relative Strength Index (RSI), which reflects a price momentum measure. Most importantly, a trader cannot afford to overlook the moving averages in crypto trading. 

Realizing profitable trading entails profound technical analysis and studying various chart patterns. By doing so, traders automatically increase their chances of hitting the jackpot.

What are price indicators in crypto trading 

In the world of crypto, indicators are reliable in analyzing the market. More importantly, they hint at the various trends in crypto price. An indicator reflects a tool that uses technical analysis to predict price movement. Traders rely on price indicators due to greater accuracy. 

In essence, if one is to make profits in crypto trading, targeting the right side of the trend is a must-do. Traders should be keen to trace a reverse movement. Experts and facts sheets have it that numerous patterns and indicators can be embraced to accomplish a win. Nonetheless, there is no single indicator that can suit all market conditions. As a result, walking the ‘combination’ path is worth it. 

Best price indicators in crypto trading

Traders can opt to employ several indicators regardless of ‘trending’ or ‘range-bound’ market scenarios. The only caution in making such a move is to avoid cluttering every chart with possible indicators. In most cases, multiple indicators yield confusion. Instead, an indicator should act as a reliable trading weapon.

Before getting to the most crucial price indicators, traders should develop excellent chart reading skills. Indicators that are most suited to the trader’s ‘trading style’ should be given top priority. Here, preference and practice will get you there -The profit maximization point.

Moving Averages in crypto trading

Best known as ‘lagging indicators,’ moving averages are more of trend-following indicators. Due to the lagging effect, they provide feedback in a ‘delayed’ manner. This is after the timely occurrence of price movements. The time frames to watch entail; The 20, 50, and 200-period. For short-term traders, the 5 and 10-period never disappoints. Collectively, these moving averages are suitable for everybody.

Typically, there exist four categories of moving averages, namely:





Of the four, the most popular moving averages are simple and exponential. Calculation-wise, and regarding price data, exponentials are considered to guarantee more ‘Weightage.’ Thus, the response toward price change is high. In contrast, simple moving averages are linked to ‘equal weightage’ to price data. This makes them a bit slower in responding to changes in price.

Relative Strength Index (RSI)

Relative Strength Index (RSI) refers to an indicator grounded on a specific momentum. It tends to capture both price and function-related changes. It’s worth noting that such a scenario occurs in an oscillation range of 0-100. Generally, anything below the 30 mark is considered ‘oversold.’ Consequently, a mark of 70 and above is branded as ‘overbought.’ Although the boundaries in question are productive during the range-bound market, they are not reliable during the trending phase. This is because they can give misleading signals.

An RSI of 14-period is widely used. However, the case for short-term traders is different because they go to a low of 5-7 RSI period. On the other hand, long-term traders go to a high of 21-30 RSI period. Of great importance to note is the fact that RSI is used for tracing ‘divergence.’ Spotting a divergence comes as a warning that trend reversal is possible.

The two price indicators mark a great way to hone crypto trading skills. However, traders are open to exploring other possibilities that suit their trading style. Above all, after gaining such a basic background, a trader should not hesitate to learn to spot the various trends; uptrends and downtrends.