What are the best indicators for following trend in cryptotrading?
What are the best indicators for following trend in cryptotrading?
I’m developing my strategy for trend trading and I’m trying to figure out what are the best indicators to catch a trend. Currently now I’m using MFI, but I doubt that it is suitable for cryptocurrency trading, so i will appreciate it if you give me a hint. Thank you in advance!
There is a difference between trend trading and trading the trend. You might feel confused about that statement, but trend trading is doing whatever you think is the trend, and going in beforehand, trying to catch trends, whereas trading the trend means you wait it out, you wait until it becomes a trend, like give it some time.
Imagine this, let’s remember the DeFi period, all those uniswap and pancakeswap periods, all they had tokens, if you joined all the way from the release, like first days, then you trend trade, if you waited a month or two and joined, you are trading the trend. I would say trade the trend and do not trend trade, that is important. If you jump into everything you see, then you are not going to end up getting good results.
The “best” indicator is what you will get after trying several indicators. Without it, everyone can tell their experiences. These experiences may be real, they may be fraud, they may not suit you, or you may need capital and experience.
Without experimenting, everyone will give you their experiences, which may not suit you, but if you are a beginner, I say that the best indicator is the one that does not make you lose and gives you a profit of at least 1% every week or two.
To me, there is not “best” indicator because we all have different strategies. What could work for me may not work for you because of your strategy. But there as so many indicators that can be used to catch a trend. The most common ones are MACD, RSI, The Bollinger bands etc
I have used all of them in the past but under different scenarios.