Mar 25, · MACD is one of the most well-known indicators for trading in OTC financial markets. Moving Average Convergence Indicator is quite popular among Forex traders but it is fully applicable for trading bitcoins and altcoins. It measures the momentum, or impulse, of price movement, but can also help determine the price trend. Nov 17, · Shown in the chart below, Bitcoin one-year active supply has been in a downtrend since early The current one-year active supply is 38% and two-year active supply is . Apr 14, · On Balance Volume (OBV): This is one of the best indicators for day trading bitcoin. It is used to basically analyze the total money flow in and out of an instrument. The OVB uses a combination of volume and price activity. This tells you the total amount of money going in and out of the market/5(48).
Bitcoin trading indicatorsThe Best Bitcoin Trading Strategy - 5 Easy Steps to Profit
After that, a trader can use the calculated support and resistance levels for more informed trading. Typical rules for trading pivot points recommend to open long trading positions if the indicator displays a bull market, and short positions if the indicator says that the market is bearish. So a trader should close long positions when the market reaches resistance levels and close short trading positions when the market falls to support levels.
Moreover, cryptocurrency traders can apply support and resistance levels as indicators when opening positions. A trader must sell an asset when it reaches resistance level, and it the asset should be bought when the it falls to support line. Cryptocurrency traders are recommended to apply scalping strategies to use crypto market high volatility to their advantage. The trading strategy includes:. MACD2Line customized indicator If you want, you even can build a Pivot Points calculator in Excel table, but this is quite cumbersome.
We also included a complete template with all the indicators that you can upload to your MetaTrader platform. To apply this strategy, a trader needs to install MetaTrader 5 Supreme Edition, because the Pivot indicator is required for this strategy. The Pivot indicator offers an unprecedented setting that adapts to both day and long-term traders.
The stop-loss is lower than the entry point, and the goal is the resistance level of Pivot. When trends are strong, this is a successful strategy for CFD bitcoin trading.
It is no accidental that some traders and experts compare bitcoin with gold. The reason for this is the lack of intrinsic value and its price movements are completely predetermined by the supply and demand of the asset. Neither Bitcoin nor gold offer returns in the form of interest or dividends. While trading a specific asset, you actually do it on a fundamental basis, based on the prospects for increasing its value, based on reasonable logic and financial ratios, in other words, based on fundamental analysis.
But how a fundamental analysis can be conducted for the virtual asset with no intrinsic value? That's why one of the most famous investors of our time, Warren Buffett, does not like neither gold no cryptocurrencies.
However, the situation with cryptocurrencies is even more complicated then with gold. First, cryptocurrencies are not related to any other financial asset. These are some of the reasons why many analysts recommend short-term bitcoins and other altcoins trading rather than long-term investing.
However, technical analysts like cryptocurrencies, Because technical analysis is one of the few types of analysis that can be applied to bitcoin and other virtual currencies.
And as we have ascertained, some technical analysis techniques can be successfully applied for trading bitcoins and other altcoins. The birth of cryptocurrency began with Bitcoin and with it blockchain technology. However, following its creation, several alternative decentralized crypto assets were created, some offering Uniswap is just one of many new automated market maker platforms offering liquidity pooling and token swapping through a decentralized exchange interface.
These new, innovative platforms Digital currencies are computer files that are stored in distributed databases that communicate over the internet. Each color characterizes an exchange. Sorry for my bad english Note : The list of exchanges in the infopanel is always the same, even if you disable exchanges. If I have the time, I will try to fix this. Here are the listed exchanges : Indicators and Strategies All Scripts. All Scripts.
Indicators Only. Strategies Only. Open Sources Only. Top authors: Bitcoin Cryptocurrency. Bitcoin Cryptocurrency. Bitcoin BTC is the first decentralized digital currency, created in Logarithmic Regression Weekly.
Bitcoin Estimated Transaction Fee. Bitcoin Difficult Model [ChuckBanger]. Pi Cycle Bitcoin Top Indicator. Golden Ratio Multiplier x1. Bitcoin Binance Sentiment Index. Finex Premium. Mayer Multiple. Bollinger Band Color Bars. World market Session Information for bitcoin.
Show more scripts. RSI uses historical data to try to determine the overall demand for an asset. It then calculates whether people are buying so much of the asset that there is likely going to be a downward correction in price or if the opposite is occurring, and the price is likely to rise.
The RSI indicator has two lines, one at 30 and another at According to the indicator, when the reading is above 70, the price is likely to drop, and when the reading is below 30, the price is likely to rise.
When prices spike in one direction or another, it can be easy to misinterpret these movements are reversals or continuations of a trend. A moving average indicator calculates the average price over a time frame, recalculating it as time passes. A short-lived spike will have little effect on a moving average indicator set to a long-enough time frame. Looking at a graph depicting moving averages can be useful in determining support and resistance levels. Resistance is the opposite: a level above the price through which it is unlikely to make a sustained move.
Fibonacci, like moving averages, is another useful tool when trying to predict the parameters of price action. While Fibonacci is not a set of complex, interdependent calculations like many other indicators, it still makes the list because of its usefulness. The Fibonacci ratios naturally occur in nature and in human decision-making.
When there is a sudden movement in price, it will often retrace, or make a move back, towards the trend. A lot of traders believe in the Fibonacci ratios. So, the levels are sometimes met partially because of the principle of self-fulfilling prophecy: People think it will happen, so they make it happen with how and when they decide to place their trades.