Technical analysis is performed relying on certain calculations of an asset’s price. Over the years, traders and researchers have developed multiple indicators to distinguish patterns in price movements. Indicators may be divided in 4 different categories: Volume, Trend, Volatility and Momentum Indicators. All of these can also be applied to the cryptocurrency market.
Trend indicators tell you what direction the cryptocurrency market is heading and if there’s a clear trend at all. They include different kinds of moving averages and some oscillators also fall into this category. Read more
Volatility measures the span of price changes within a certain period. This may be one of the most important indicators for short-term crypto traders who focus on making profit by price swings. The higher the volatility of coin or token the more opportunities to take advantage of the market.
Momentum indicators measure the strength of the trend and are used to predict the trend reversals. They can be applied to predict when the price of cryptocurrency reaches its top and bottom. Read more
Volume indicators, as follows from its name, show how crypto asset’s trading volume is changing over a period of time. The volume is more commonly used together with other indicators. The main purpose of this type of indicators is to evaluate how strong this or that crypto price shift is. Read more
Indicators are mainly used to determine entry and exit points. To make a decision, combine indicators of different types to confirm a trend. Technical analysis of cryptocurrencies is especially handy for day traders who exploit volatility to gain profit. The task may be easier with TradeSanta automated trading bots that take advantage of crypto market fluctuations. Set up a crypto bot according to your parameters to benefit from an emotionless bot executing your strategy.