Crypto Indicators, the most efficient tools in predicting the future price of crypto asset

Greetings all and sundry, I am very excited to write and share this article here in this community. It's been a while since I wrote to this community due to how busy my schedule was during the exams period in school. For now, since I am done with examinations, I will try to continue the flow of posts as I used to write here previously. Without much ado, I would like to delve into today's topic, and I will be talking about Crypto Trading Indicators.

What is a Crypto Trading Indicator?

Crypto traders or investors try to determine the direction of the long and short-term price of an asset through the use of various technical indicators or tools. These indicators help them to predict the future price of an asset, including the volume of the price of the asset. We all know that traders or investors always buy or sell assets in order to make a profit and for that matter, they try with all means to get an accurate signal in executing such e entry. Mostly, investors follow fundamental or technical analysis in determining these entry points for the best trade entry or exit. In this article, we will briefly look into technical analysis and later, we can look at fundamental analysis in our next article.

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So to define crypto indicator refers to a measurement tool that investors use in the determination of price expectations of crypto assets. It helps traders determine the behavior of a crypto asset's price. There are several or various crypto indicators used by traders. Let's briefly look at some of the common ones in this article. What is Relative Strenght Index (RSI)? This crypto indicator was invented by J. Welles Wilder in 1978. RSI is commonly and widely used in the crypto world. It helps traders to identify potential points of reversal in the current price pattern of an asset and also to identify the strength of the price movement of an asset. This is used in calculating the losses and gains of a crypto asset over a certain period of time and it is simple and easy to use. As such, beginners can also use this tool without much difficulty or challenge. _{Image Source}Also, RSI helps traders or investors to identify when there is overvalue or undervalue in the market price of an asset. This assists traders to know when to enter and not to enter the market. It is not an accurate or a perfect tool to depend on and as such it should be used with other indicators so as to predict not 100% accuracy but something near accuracy to perfection. Let's look at another indicator in this post but for the betterment and understanding of each of the indicators, I would be writing more details about the various individual indicators so as to help users understand their use very well. What is MACD indicator? This indicator was also developed or coined in 1970 by Gerald Appel. MACD is an acronym for Moving Average Convergence and Divergence Indicators. It can be used with the RSI indicator to predict or provide accurate results. MACD helps traders identify bearish divergence and bullish divergence in the crypto market. Just like the RSI, it can also be used by traders or investors to determine if the market is overvalued or undervalued. _{Image Source}
Conclusion Crypto Indicators are used by traders to identify price fluctuations in the crypto market, this help them identify the positions to enter or exit market in order to earn profits. There are numerous indicators as I said earlier and you as a trader or investor must learn and know which one you are best in use at or your favorite indicator which you think works best for you and get yourself acclimatized to. I would be describing more of these indicators in my subsequent posts and I would urge you to follow up to learn more about them.