In Bitcoin intraday trading, there are some commonly used technical indicators that can help traders better analyze market trends and make decisions - Issue 1:
Introduction to Common Technical Indicators in Bitcoin Intraday Trading
Moving Average (MA) is a tool used to smooth out price fluctuations. The Simple Moving Average (SMA) adds up the prices over a certain period and divides by the number of that period. For example, the 5-day Simple Moving Average is the sum of the closing prices over the past 5 days divided by 5. It can help determine the direction of price trends; when the price is above the SMA, it is generally considered an upward trend; conversely, it indicates a downward trend. The Exponential Moving Average (EMA) gives more weight to recent prices, reacts more quickly to price changes, and can promptly reflect short-term price variations.
Relative Strength Index (RSI) measures the speed and magnitude of price changes to determine market overbought and oversold conditions. The RSI ranges from 0 to 100, and it is generally considered that a value above 70 indicates an overbought area, where the price may pull back; a value below 30 indicates an oversold area, where the price may rebound. In Bitcoin intraday trading, the RSI can help determine the timing for buying and selling.
