Bitcoin Forum

Hi, in this topic I would like to discuss the usability of technical indicators in the cryptocurrency market! So, Let's start!
Indicators were developed by financiers for traditional markets. Over time, key indicators spread to most markets, where they also showed their applicability. In this way, thanks to the proven versatility, they were on the crypto currency market. The cryptocurrency market as a whole differs from traditional ones a little. Mainly because its participants are the same or at least the same people as those who trade on the traditional. The thinking of the traders is the same, the methods of responding to the market situation - too, so the assets on both cryptomarket and traditional behave more or less the same. And that's why the technical analysis and its key indicators in particular are successfully applied on cryptomarket.
So, what do u think about the usability of technical indicators in the cryptocurrency market?

It worked and it will work. One of my colleagues uses the same system both on stock market and crypto trading successfully. Although some tweaking needs to be done, i.e. timeframe settings, etc., But basically when you have a trading system for stock market or forex, trading crypto will be easier.

I dont know on where you do get that too much confidence towards technical indicators which you have said it is more easier on crypto trading? I dont think so because based on my experience it wont really be that precise for us to give results on what we do saw into those indicators.Ive been using this since while im engage on crypto trading.It isnt really working anytime but these tools are good to have rather than on doing naked trading or just fully dependent on fundamentals.

no matter analysis that we used to trading, fundamental or technical indicators, it all  was only a tool to find specific values ​​and points. so at the time of trading if only depends on the indicator. will be very bad for the future.

but it also not wrong in using such an indicator.

I see these threads again and again. It's really quite simple, TA is useful but it will not guarantee great results. You need to be able to use a combination of things to make the best decisions, that will be TA as well as just general feel for the market. Sometimes TA will suggest a strong sell when in reality it should be a strong buy based on many other things that TA does not account for.

It is working, both crypto and trading almost the same the different is the factors that caused the price to moved in stock we got outside factors like politics or other things, but in crypto it's pure supply and demand, in trading technical analysis is very important it's the indicator to see where the price will go

Yes, been using technical Indicators to assist me in my trades, technical indicators serves as a confirmation how a pattern goes. make sure before you use a certain indicator you know how it is used.

Indicator system is a tool to help understand price fluctuation, I've never traded other than trading in crypto. If it's different then it will not make a very far different. So choose an indicator that suits your character or which easy to make you understand. Option of indicators are so many, i think you will be able to find a match character.

Technical analysis works in every market as a way to measure and quantify price movement. By itself it is not predictive. You cannot predict price by using historical price in isolation without other information. If you could do that reliably everyone would be rich. The better way to trade is to use technical analysis as a way to measure/quantify historical price movement and then add order flow info, Smart Money participation, rotational information, etc.

People use them and they can work but very often they won't. If they work 5 times in a row, they may fail to work the sixth time. They may fail miserably and the net result of the six trades may be negative.

Knowledge about technical analysis is important to know market conditions in bullish or on bearish. Although technical analysis does not work 100% perfect but this is really help to make decision when best times to buy and sell. I can not trading without charting and some indikator, but also important to learn about fundamental analysis when doing long term trading.

the name is technical, the note is on white paper.
so all can be done when it happens in the field.

we cannot improve the trading of cryptocurrency from technical because the true market cannot be predicted.

I bought Ethereum afew days ago at the price $380 because this price become  level support of this coin when i seen in daily timeframe, but the price keep down to $250 so technical analysis is does not work accurate in crypto trading. But although TA not accurate we need to see the chart when decide to buy or sell crypto. Because TA mostly does not accurate so to avoided loss is very important to use stop loss whenever make open potition.

base on my own experience, indicators are not working in this very volatile market of cryptocurrency. as a guideline in most of the time it is psychological so i just use naked trading and fundamental analysis and let the plan work.

None of those really help, or at least they did not help me with my trade. I have seen the crypto currencies going in the up and down direction based on the fundamentals surrounding to them. So basically it would be unreal to watch out the indicators and predict anything based on them. I mean sometime indicators (in traditional market) tells us that market will be up or down but in here, its all about people and news that affects them. If there is good environment all over then people are happy to invest huge and due to decentralised nature crypto freely move upwards and thus creates positive hype and indicators themselves moves in +ve direction.  So no indicators, its people, news, miscellaneous stuff. :P

Trading cryptocurrency without technical indicators can be a very huge risk. It is worth it if you use technical indicators to trade. This would tell you when to buy or when to sell in the market. Its very important we dont trade blindly in this market.

Indicators are very useful :)
In my case, I use indicators as reinforcement for my analysis
or sometimes I rely 100% on some indicators on my trades.

for now it seems the technique for reading the indicators that occur at the exchange place is not too accurate because the cryptocurrency price movements will never be predicted.

my advice is to use technical analysis, i.e. resistance levels, support levels, trend lines ;)

I think that it is worth using the technical indicators in the crypto market because this will help to analyze the situation and win in the market. To my mind, it is better to do this now

In your own experience it didnt help out but for some or most traders they do make use of these indicators even it doesnt give accurate readings but having these analysis or tools will give you or picture out some idea on your trading rather than not using any tools at all.This would only depend on how you do make use of it and its true that it might work or not but its just normal because we do know on how this market behaves when it comes to its price.

I say that techical analisys can't make you harm but isn't of a big help either. Use it more like the guideliness and information that help you to be aware of current trends but don't rely on it fully and technical indicators will not make a better trader out of you. Also it's important the source you are using so the data you get might vary.

I fully agree with what you wrote above. Everything is just like that. The only thing I would like to add is the news factor. The crypto market is very influenced by news (both real and fake), so when working on a crypto market, you need to consider this factor. Technical analysis works well only if the situation is stable. If there are any influential news, then technical analysis is powerless.

Of course, it is. But it shouldn't be the only factor taken into account because other external sources not considered in technical indicators can greatly influence the market simply because the're new variables.

Technical analysis can be helpful sometimes. But I think, fundamental analysis is much better in the crypto. It is easy to move the price of the digital money which value of market is so cheap, and with TA you can't reach a conclusion in this situation.

I take all my investment decisions based only on technical analysis, so I think that every crypto investor should use the technical analysis, since without it it is not possible to assess the current market situation.

yes of course it is still very valuable because with this technique you can find out the right time conditions to buy and sell coins so that you will be easy to get profit when trading.

Its worthed and it is a must to learn technical indicator to be able to make profit, people created more and more advance indicators to be easier to predict the market movement, indicators cant be 100% correct but it can give a good review about the market, and from that point you can speculate about the price, so it's an important element in trading

In the market, crypto-currency, like any other, there is a crowd of buyers and sellers. according to this they behave according to a certain algorithm, as in any market. Indicators and other tools work, but we must not forget that the market is illiquid and manipulative.

Well, not using a technical indicator does not mean you cannot trade the market at all. Some investors or traders simply like going indicator-less than using one. You can decide to stick with just price actions or candle reading on the chart. With that said, indicators are still a very good way to detect possible market movement, either with momentum indicator or trend indicator, but they can really be an added advantage if known.

We all have different ways to read and do trading and doesn't matter what it is, nonetheless what matter is if we earn a profit by doing it and I think that is trading all about. Yes this TA may help us throughout our trading life here but don't put all your trust here as sometimes it may go on the wrong way. Thus, our experiences will make us to breath continously.

Yes and no, and what i mean by this is the following:

You can trade profitable only by using price range + patterns + reading candles, that is proven. Indicators on top of all of these i just a nice extra validation to your analysis.

Personally i do use indicators for this exact reason, extra validation. There's never too much validation :)

Right! For instance, before I even started using the Stoch RSI indicator, I have always stuck with the D1 - weekly chart and then trading the candles only and that has been very effective for me.

However, with momentum indicator, it made it a bit easy for me to understand the market sentiment, either oversold or overbought, how the market his acting based on its price at this point and what decision I should be making. So I agree with the fact that it is not a necessity but it can be an added advantage.

The idea of using a technical indicator in the market normally is to understand the sentiments on the chart, and can help serve as a good signal to know if the market is ready to move up or have the slight chance of doing so. Technical indicators are good for making decisions but to rely on them, you will need to be mixing quite a number of them and also judging based on other technical analysis on the chart itself.

Momentum indicator is very much useful one. Combining it with zig-zag indicator gets me more than 80% accurate over bought or over-sold regions which is the easy identifier to get market reversal information. Without most of here discussed indicators, I could not imagine my trading.

The useful indicators of technical analysis are important to know the market conditions in rising or falling. Although technical analysis is not entirely correct, it also helps to decide when it is best to buy and sell.

yes of course it is very profitable for new traders because with these indicators the new players can determine the right time to buy and sell coins.

Technical indicators are great help at some point but in the crypto currencies these instances are pretty low. I mean there is valid reason for this and it starts from dependency of the crypto currencies over the fundamental aspects of market. This market is very volatile and alway leads to fluctuation based on the news around the globe, what are the happening of political pressures and much more you name it. Indicators move according to it and not because they are moving and depending upon which we should be making decisions. Thats what I think

It would really take an unserious person to think that their plans and strategies cannot fail even with any form of analysis. It is the market, and the essence of using some of these indicators is to help inform our decisions rather than just entering a market position blindly which is what a lot of people do.

It is an added advantage to know how to use some certain indicators, but better to stick with just few, use them to form a strategy and build on it, to be better.

I never used technical indicators for trading. Maybe because I'm more concentrated on long term investment than day to day trading.  Research and strategy are my ways to go.

In the past, technical analysis was not good enough, perhaps in relation to market value. But, I can say that it's been working lately, so I can predict the price with technical analysis. I can not say it works exactly without being wrong. Anyway, that is just guess, there is nothing definite.

In my opinion, technical indicators can be applied to everything related to trade charts. I myself prefer to use technical indicators rather than fundamentals. But I only use a simple indicator, because if you use too many indicators on the chart it will be difficult to read chart patterns. Between crypto market and traditional market is different from the transaction method. For the chart, I think it's the same.

 I not sure that there are people who doing a trade the same way. But, in my experience, I saw only a few who used something like a moving averages

They can still be quite useful in the crypto space as well.

Honestly, they actually work the same way and I do not see any difference except for just the volatility of this market.
As long as you understand the indicator you are using, it is aligned with your style and strategy; it would be an easy way to go when making decisions in the market.

What is just important is having that understandings that it is a market, and you cannot 100% rely on indicators or TA thinking as long as they speak your language, everything is okay, as no sane trader will ever do that ?

It is worth it if you learn how to use technical technical analysis to analyse trades and it always works in this market if you know what you are doing. It is worth it

Only those who fully understand the system can work with this idea, most of the time inside crypto fuds and news are moving the value, not even the
indicators and past charts movements can be a strong basis of buying an assets, there's no clear path as manipulations really exist and dominating the
market, but in some other aspects we can also use indicators to give some ideas of possibilities that  the next move will be favoring our assessment.

Technical indicators are never 100% accurate. Even the best indicators maybe are correct 25-33% of the time at best during certain conditions.

Its impossible to get every trade correct, especially when there is alot of influence such as news that the charts don't take into account.

For example even in the stock trading world the TA can fail for example like it did with Facebook (FB). Most indicators were bullish but it had a huge drop one day because of bad earnings, something that would of been very difficult to predict unless you had insider info and you would of lost money trading with basic TA.

You need to use TA with a good risk/reward scenario and try and leave emotions out of it. Its basically best to be a bull in a bull market and bear in a bear market and not countertrend trade.

Apart from those who may prefer a clean chart with just price action and candlesticks pattern to trade, virtually higher percentage of traders make use of indicators.
The only issue I have ever had with indicators is that they can be pretty much lagging, but at the same time, they still help you when making certain decisions in the market as they help you know the possible change in trend of the market, and that can help you see all you need to know to make the right decisions.

The hypothesis is that technical indicators are untested in this market, and as a result, analysts and traders may or may not be applying them properly. We set out to find out whether or not certain technical indicators have any value in predicting any upside or downside performance.

A lot of people have never been so fond of technical indicators because they lag anyway and you will need to be able to mix them with some other things so as to be able to make the best decision.
One thing with this market which I and everyone know is that, it is highly volatile and sometimes, it is always better to even have a clear chart and a clear mind, knowing what to do when trading it. I prefer clean charts which is why I am more into the candlestick pattern and price action to make decisions in the market.


In some points, technical indicators are worth to use it but on the other hand, technical indicators are not like a tool for success in trading. These are used for basis only especially in trading. I have used some indicators when I'm trading. There are times that I got profit using it but there are times that I got lost because of using indicators and at the same time, lack of patience.

Its worth it indeed because it can help you in trading. Using some indicators will help you predict your next move in trading.

It is working and you can also use it un crypto, at least to help you find out then to sell or buy, identity the support and resistance zone. Although sometimes the price in crypto moves very wild because of the pumps and dumps but you can trust the technical indicator most of the time.

Sometimes it is but still you can't follow them blindly.

I would use them if I was comfortable and have traded with them in the past.  I usually use the RSI with Candle charts and thats it.  The rest I go by feel and use some AI bots for short term indicators to give me one more thing to take into account. 

I think technical analysis is very necessary for the Crypto market. Because you can not price these technology businesses because they do not have any reports about the annual report. So we need technical analysis to make a profit when investing.

I use technical indicators in the market to add predictions of price movements of cryptocurrency assets in the market, maybe that's all.

technical analysis helps a lot in terms of doing trading I got a friend who help people who wants to trade and with his ability to do some technical analysis his trading works so it helps a lot.

yes analysis do somehow aids us to do trading ( whether it is technical or not ) but analysis alone cant bring you a sustainable profit due to the reasons that cryptos are totally unpredictable which means there is still a posibility that the movement of the coin will reverse or wont go in a right direction as stated on your analysis . if you are unlucky , you can still experience to loose no matter how many analysis you do .

technical analysis can help us to determine where the price wants to go but this will not work if there are any other news that will make traders become panic sell or panic buy. but like the other analysis, if we can learn this analysis, I think we can get something on the market and we can make a decision to enter with the market or just watching longer to see another sign. personally, I am not too familiar with the technical analysis but I think it helps me to make analyzing the coins so I can predict where the coins move although I know that it will work 100%.

Well practicing t.a can help you get a better grip of how the market moves since it'll require a lot of study of different market situations. It helps but ultimately, with a market as unstable as crypto, itks not as accurate as those of stocks and forex t.as

Of course, as a trader I have been using technical indicators, the main reason
why I use technical indicators is a reinforcement to my analysis.

Basic indicators are incredibly helpful. Trend lines, Fractals, RSI, Stochastics, MACD, and Simple and Exponential Moving Averages are some basic ways gauge resistance/support, momentem, and price direction.

Technical analysis is basic of trading and all trader should have knowledge about it, this TA make more easy to predict the support and resistance of the price, and when we know where is the support and resistance will be make more easy to decide when to buy and sell. In all kind of trading, TA is not fully worth but this is very helpfull to predict trend of the price.

Technical indicators are useful but it does not guarantee a good result as it is a volatile and sensitive to secondary activity.
Consider to your own circumstances, and obtain your own advice, before you rely on this information. Also, verify the nature of any product and service and consult the regulator website before you make any decision.

It helps during very short term trading. If you are going to buy something and than sell it right back again in couple hours at most than technical indicators are the way to go but if you are planning on investing even longer than 24 hours than it becomes worthless because crypto world is not depended on the indicators there are always something that happens out of the norm.

Sometimes a whale buys a lot of stuff, sometimes some exchanges delist some coins, sometimes there is "hacking" going on with an exchange, sometimes mtgox trustee sells coins at once and all that news. If something like that happens than all of your indicators are wrong and they will not help you, sometimes that news or the thing happened will help you sometimes it will hurt you but in the long run it is crazy and you should not depend on it.

If you want to use indicators you must trade quickly or it might not be really good for you in the end.