This post will be quite in depth.

I noticed a lot of comments on my crypto trading themed posts. These comments were all about the definition of swing trading, indicators, divergences and all that.

Well, stick around for this post if that's you, because I'll clear the air on anything I find complex in this write-up.

Let's get started!

So there are a bunch of indicators you can use for trading cryptocurrencies.

Some will give you good results. And some will make you lose your hard earned bread.

But all indicators are perfect. Only the user is not.

So in this post, I'll highlight a few indicators you should be using for your crypto trading, as well as give you a very uncommon indicator pair that works magic!

So basically, if you want to successfully trade cryptocurrencies, you'd need just 4 indicators.(Wow! Not many at all!)

Now 4 is a large number to keep track of, but the way these complement each other, you'd be able to guess the outcome of the other indicator by simply looking at the value of the first!

These indicators are:

• Stochastic
• 5 EMA
• 10 EMA
• Bollinger Bands

See? Very simple!

Now I'll explain what all of them do.

STOCHASTIC

This indicator tells you when the market is overbought and oversold. Basically, you buy when the market is oversold and vice versa.

EMAs

Both EMAs do the same job, just that one is faster than the other.

The 5 EMA takes the average price of the last 5 candles and plots a histogram line of it over all the next 5 candles. In other words, it's a leading indicator, or it leads the price.

The 10 EMA takes the average price of the last 10 candles and plots a histogram line of it over all the next 10 candles. As you have just guessed, it's a lagging indicator (I knew you were smart!)

BOLLINGER BANDS

The Bollinger Bands are made up of 3 lines plotted by calculating the nature of the market over a set period of time. This therefore measures volatility. The middle line is a standard deviation line however, and the idea is that in a ranging market, the middle line usually acts as either a support or a resistance, depending on the market type.

Ok! That's out if the way.

So how do you combine these readings to get some monehhhh?

Well, you'd need to find cryptocurrencies that are trending first. You can do this with the crypto screener in Trading view.

Once you find a crypto with a nice graph(a nice graph is one where the resistance and support lines form an upward channel, which is great for swing traders), you apply these indicators on the graph.

The aim is to ensure that the following criteria are met:

• The price of the candle you're watching must be on or below the bottom Bollinger band
• The 5EMA must cross above the 10 EMA from the bottom.
• Stochastic is showing oversold or is approaching oversold regions.
• The price just bounced off support or is very close to support.

You then enter a position and set your stop losses. Remember that setting stop losses should be based on the market, not how much you're willing to lose.

And that's it! That's how to combine those indicators for nice swing trading profits.

Confused? Astonished? Does this post need some work? 

Tell me in the comments below!