Mastering the Markets: 7 Essential Trading Indicators for Every Direction

 

KDJ

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If you want to learn about the overbought or oversold conditions. KDG is best for this task. It consists of three lines: K, D, and J. Where K represents the closing price to the lowest price in the recent period, D is calculated on the K line, and J is calculated on the values ​​of the K line and the D line. If the indicator shows a value above 80, it means the coin is overbought, and if it shows less than 20, the coin is oversold. If the K line crosses the D line from below, an oversold condition and buy opportunity occur. If the opposite happens, it means an overbought condition, and you must take a short position.

MACD

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If you want to measure the price volatility of a coin, use MCAD. When the DIF line (green or blue) crosses the MACD line (orange) upward, signal the upward trend, and the histogram becomes green. When the DIF line crosses the MACD line downward, the price falls back downward, and the histogram becomes red, signaling traders to take a short position.

EMA

Are you in search of buy and sell signals? Use EMA. What you need to do is check if the price and EMA line are above it; if they are, it is the buy signal, and if both are downward, it is a sell signal.

MA5

Are you a short-term trader? M5 reacts faster to the latest price changes. Mostly useful for finding short-term trading opportunities, with this tool you can quickly discover the latest price changes.

MA7

It is similar to MA5, but useful to discover price changes upwards. Pay attention to line and price. When both line and price are above, it indicates a buying signal, and when down, it’s a selling signal.

MA15

If you are a medium-term trader, use MA15. Work similarly to other MA indicators.

MA30

This indicator has a long cycle and is therefore used for learning the longer-term price trends.

Finally, when prices are in an upward trend and MA5 and MA7 cross over MA15 and MA30, it means a strong uptrend. When MA5 and MA7 cross below MA15 and MA30, it indicates a strong downtrend. When there is no relationship between short-term and long-term moving averages, it means the market is in a state of consolidation or unclear trend.