Many Crypto Traders (I think) over complicate trading by drawing too many lines on a chart, using too many fancy indicators, and having a bias to fit their narrative.
My question is – What is YOUR most useful indicator for trading cryptocurrency?
Coming from a background of trading stocks on the 1 min, 3 min, and 5 min candles…I did not have the time to draw out fancy lines on a chart.
I came into crypto with 6 years experience behind me in a faster paced game. The biggest change to my strategy was getting away from the 1, 3, and 5 minute candles and only focusing on the daily/hourly candles. This tiny switch in strategy has propelled my portfolio to amounts I thought would take me several years to reach.
Here’s a breakdown of my 3 favorite indicators….
Support & Resistance – while definitely old school, these are the backbone to my trading strategy. I could trade the charts with scary precision while only using these in my analysis.
Volume – Possibly the #1 indicator to an upside move! When we see volume pour in, that’s when I know the magic will happen.
Trend lines – Ever heard the saying the trend is your friend? You don’t want to be stuck in a long bias while experiencing a market downtrend (current market conditions). Identify if the chart is making higher lows & higher highs (uptrend) or if it’s making lower lows & lower highs (downtrend). This should help you identify the general direction of the market.
Conclusion – I do not use Elliot Wave. I do not use Fibonaccis. I do not draw Pitchforks. I do not use Ichimoku Clouds. I do not use Bollinger Bands.
Basically…I keep it simple because it’s WORKED FOR ME. I am not saying other indicators do not work.
This is MY strategy & I’m curious to know yours!
So what indicators have you found most helpful for your own trading?