‼️Indicators‼️ — simplify reading charts, DO NOT predict the future, but HELP make decisions about buying or selling (entering a long/short position)
There are many indicators, they are divided into groups:
🧩trend (for market direction),
🧩oscillators (to determine overbought/oversold)
🧩volume (find out about interest in the asset)
The main indicators for trading that everyone should know, in MY opinion, are EMA 200, RSI, MACD, Volume, horizontal volume, and the 'Super Trend' indicator (available on the chart analysis platform 'trading view').
Let's start in order 😉
EMA 200 (Exponential Moving Average)
❓ What is it useful for? ❓
📈📉HELPS TO DETERMINE THE TREND
Price above the line - ascending
Price below the line - descending
‼️it can vary on different timeframes, and this is also important to consider😉‼️
Suppose the trend is descending on the 4-hour, while on the 1-hour it is ascending, you decide to enter a long position according to your strategy - remember that the descending trend on the 4-hour may continue) Configurations can be different.
*The larger the timeframe, the more important the value of EMA*
🌟Acts as a support or resistance level
In an ascending trend, the price most often bounces off EMA 200
In a descending trend, it most often bounces off EMA 200
😱Break of the EMA 200 line😱
From bottom to top:
Signals a trend change to ascending.
From top to bottom:
Signals the beginning of a descending trend.
It is recommended to look for selling points.
🟢It is better to rely on at least several confirmations (indicators, formations, levels, logic) that the position is worth opening in the direction you intend🟢
🤪Homework🤪
Analyze the history of 3-4 charts
Find on the 4-hour, 1 hour 15 minutes, and 5 minutes timeframes where it intersects with EMA 200, how did the price react? When did it bounce off, what was the trend on the higher timeframe?
Analyze, provide YOUR statistics, because there are no canons in crypto, and you will develop VIEWERSHIP, which is VERY IMPORTANT for trading🔥
I am waiting for your feedback on how clearly I described this indicator. Do you have any questions left?
🛑I won't check homework in the chat, but it will be very useful for every beginner🛑