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Technical indicators help traders read price action and spot setups with more confidence. You do not need dozens of them — a few well-understood indicators are enough. Here are five that form the backbone of most crypto trading strategies.
1. RSI (Relative Strength Index)
RSI measures momentum on a scale of 0 to 100. Readings above 70 suggest a coin may be overbought; below 30 suggests oversold. RSI is most useful for spotting when a trend is losing steam or when a pullback may be ending.
2. Moving Averages (EMA)
Exponential Moving Averages smooth out price to reveal the trend. When price is above the EMA, the trend is generally up; below it, down. Crossovers — like a short EMA crossing above a long EMA — are common trend-confirmation signals.
3. MACD
MACD shows the relationship between two moving averages and helps identify momentum shifts. A bullish MACD crossover can signal building upside momentum, while a bearish crossover warns of weakening.
4. Volume
Volume confirms whether a move is real. A breakout on high volume is far more reliable than one on low volume. Always check volume before trusting a breakout or breakdown.
5. Support and Resistance
Support is a price level where buyers tend to step in; resistance is where sellers do. These levels are where the cleanest setups form — bounces at support, rejections at resistance, and breakouts through either.
How Professionals Combine Them
No single indicator is enough. Professional setups use confluence — several indicators agreeing at once. For example: price bouncing at support, RSI recovering from oversold, and rising volume together form a much stronger signal than any one alone.
Let the Analysis Be Done for You
Alpha Trade Radar signals are built on multi-indicator confluence — trend, momentum, volume, and key levels combined. Join our Discord to receive signals with the analysis already done.
Educational purpose only. Indicators improve odds but never guarantee outcomes.
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