My Top 3 Favourite Indicators for Technical Analysis of Cryptocurrencies
A few general remarks before I go through the list:
I) You don’t need to use indicators to trade successfully. There’re plenty of traders who chart ‘naked’ i.e. without any indicators and do so with tremendous success. That being said, indicators can certainly be helpful and supplement your analysis.
II) Less is more. Namely, in my experience the more successful traders are not necessarily those who know how to use and interpret the greatest number of indicators, but rather those who have truly mastered a couple of indicators and use them to their full potential.
III) I would strongly advise against using any indicator as a crutch. If you’re unable to interpret price action and unable to find trade setups solely by looking at an empty candlestick chart, then you have no business using indicators which automate and map support and resistance for you. I sincerely believe that one is better served by learning price action first and using that as the basis of one’s technical analysis, and then adding the ‘fluff’ indicators afterwards to see if there’s any confluence.
IV) Just because I didn’t include an indicator in this list doesn’t mean I think it’s a bad indicator.
Without further ado, let’s get into my favourite indicators, why they’re my top picks, and how I use them.
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