Sirwin
Sirwin
Indicators Complementing Candlestick Charts ...

Indicators Complementing Candlestick Charts ... - 1


 

Indicators Complementing Candlestick Charts ... - 1

 

     If you are interested in cryptocurrencies. As I explained Fundamental Analysis and Technical Analysis and The Beauty Of Candlestick Chart in my previous articles, you need to know the basic technical analysis. In this article, I will talk about two indicators you should examine along with candlestick charts.

RELATIVE STRENGTH INDEX ( RSI )

     It is used to measure the internal strength of the asset by comparing the closing values ​​within the specified period. Usually the 14-day period is used. It takes a value between 0 and 100. Reference values ​​are generally used as 30 and 70. Relative Strength Index ( RSI ) overbought above 70 indicates oversold while Relative Strength Index ( RSI ) below 30 indicates oversold. Buy-sell signals are received by exceeding the reference values.

     Trend starts, support and resistance levels, buy-sell signals from disputes are reliable. The level of 50 is the balance point. Higher price movements indicate six falling price movements.

    Relative Strength Index ( RSI ) is an indicator that provides predictions about the direction of the short and medium term trend.

MOVING AVERAGE CONVERGENCE DIVERGENCE ( MACD )

     It is calculated by subtracting the 26-day moving average of the price from its 12-day moving average. The dashed line (zero point) that divides the graph in half can also be thought of as a support line.

     The fact that our Moving Average Convergence Divergence ( MACD ) and signal lines are above the zero point indicates that the price is in an uptrend. The opposite is true for the downtrend.
The Moving Average Convergence Divergence ( MACD ), which received healthy signals for the medium term in trending markets, generates false signals in the horizontal market.

     Examples for understanding indicators ; 

rsi and macd

The Relative Strength Index ( RSI ) signals the beginning of the uptrend and the downtrend first. Then the Moving Average Convergence Divergence ( MACD ) confirms.

rsi ve macd

 

Moving Average Convergence Divergence ( MACD ) is unstable, Relative Strength Index ( RSI ) is gaining strength. Moving Average Convergence Divergence ( MACD ) reacts too late to RSI's receive signal. The reason is that it takes time for the effects of horizontal movement to subside.

rsi and macd

The Relative Strength Index ( RSI ) and Moving Average Convergence Divergence ( MACD ) gave the beginning of the uptrend very recently. 2. The lower trend of the bullish wave in the indicators signaled the downtrend.

 

Result:

     As can be seen in the examples above, the Relative Strength Index ( RSI ) and Moving Average Convergence Divergence ( MACD ) indicators, which analyze past prices, provide you with information about the trends. There are other indicators besides these two indicators. You will learn the indicator movements according to the characteristics of the crypto money you follow. As you practice, you will gain experience. You will turn this experience into profit. Listen to everyone, but decide for yourself ...

 

take care, see you... follow me ...

 

     Please browse my articles that will interest you ...

How do you rate this article?

8


Nas.A
Nas.A Verified Member

“Keep your eyes on the stars, and your feet on the ground.”


Journey To The Cryptocurrency Ocean
Journey To The Cryptocurrency Ocean

"Keep your eyes on the stars, and your feet on the ground."

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.