How to use Technical Indicators to improve your trading

How to use Technical Indicators to improve your trading
Every trader is always on the lookout for the perfect time to buy and/or sell their cryptos in order to maximise profits. Buying or selling cryptocurrencies at the perfect moment is an art and now you can do it too. Today we discuss how to use Technical Indicators to improve your trading on AltCoinTrader.

Technical Indicators to improve your trading

Technical Indicators are mathematical calculations that follow a coin’s price, volume etc. They are very helpful in order to predict a coin’s future price movement.

AltCoinTrader is South Africa’s most secure and easy to use cryptocurrency exchange. Did you know the exchange has a number of Technical Indicators that will go a long way towards assisting you in identifying ideal buy and sell opportunities?

To get stared, log into your AltCoinTrader account and select the Advanced button to the centre of the page. The Bitcoin chart automatically pops up when you log in. Select the “Indicators” button to choose from a variety of Technical Indicators.

Short and long timeframes

One of the most important indicators to check would be the timeframe. The short timeframes or candles such as 5 min, 15 min and 30 minutes will give you an indication of which direction Bitcoin is expected to go in the short term. Use the 5, 15 and 30 minute indicators to identify a buy opportunity. It is simple to identify the right time to sell by looking at the longer timeframes such as the 1 hour, 2 hour, 4 hour and 6 hour charts. For those who are looking to see what a coin is likely to do over a longer period, refer to the 1 day, 1 week and 1 month indicators.

Bollinger band

The Bollinger band Technical Indicator consists of 3 lines or bands and indicates market volatility. Generally speaking, the price of a coin moves within the three lines. When the chart is moving above the middle line, it means that a correction may follow. If the chart is moving below the middle line, this may be an indication that the price may go up soon. The general rule of thumb for Bollinger bands is that the candles will always go back to the middle line, like a magnet.

MACD

MACD or moving average convergence/divergence is a great indicator to show movement, strength, duration and direction of a coin’s price. The MACD indicator consists of two lines on AltCoinTrader, a blue and red line. Buy and sell opportunities can be identified when the blue and red lines cross. For example, if the blue line is above the red line and moves down to cross the red line, it is generally an indication that the price is going down. If the red line is at the top and the blue line crosses it to be above it, it means that the price is about to increase.

It is important to note that one cannot simply trade on Technical Indicators alone since cryptocurrencies also react to Fundamental analysis or news events. Getting to know your Technical Indicators is a great way to start trading successfully on AltCoinTrader.