MACD and RSI are two popular trading tools for predicting cryptocurrency price movements.
Although they can also be used to find the best buying times for the long term.
I'll explain it to you as briefly as possible:
MACD
The MACD compares two lines that show price averages.
If the short-term line is above the long-term line, it suggests that the price could rise.
If it is below, it could go down.
It also uses a signal line: if the MACD crosses the signal line upwards, it is a buy signal, and if it crosses downwards, it is a sell signal.
RSI
Measures the strength of an asset on a scale of 0 to 100.
If the RSI is above 70, the price is overbought (could go down), and if it is below 30, the price is oversold (could go up).
How to interpret them together:
If the MACD indicates a possible uptrend (above the signal line) and the RSI is below 70 (not overbought), it is a signal that you might consider buying.
If the MACD suggests a downtrend (below the signal line) and the RSI is above 30 (not oversold), it could be a signal to sell or wait.
* Using both tools gives you a more complete picture of the market and helps you make more informed decisions about when to buy or sell *
