Bitcoin Forum

Hello Bitcointalkers,

The subject of the thread is pretty self-explanatory, I am wondering which tools would you recommend for spot trading in particular.

These are few trading indicators:
Simple moving average for long term trading (SMA)
Exponential moving average for short term trading (EMA)
Relative strength index (RSI) to indicate to say in the market for long or for short time

Some other ussuful indicators are:
Bollinga band
Oscillating momentum

Try and learn how to draw lines too to indicate the extend of price rise and fall. Always know that trading is highly risky, use the amount of money you can afford to lose to trade.

I only use 1 indicators in spot trading, RSI indicator to see if the coin is overbought or oversold. Other than that I also use support and resistance, trend line and bollinger band to analyze the market. It works for me at 15 mins to 1 hour time frame.

Some of us may have different tools or indicators it depends on what kind of strategy we are using or how are we see the market.

Drawing of lines is still a biase way to trade because it is based on the individual mind or the way the trader decides to draw it out from his indicator like some are using Fibonacci which can also be like drawing of line. I think SMA, MA and RSI are better to show every trader worldwide how the market has formed, overbought or oversold too because they are same across the world depending on the time or adjustments done on them but drawing of personal lines is only personal.

Having a combination of trading indicators would be beneficial for you. If you have experience in trading, you would know that it's not enough to have only one. It would help if you had multiple indicators suggesting a predictable move in the market. That's why it's essential to have various charts that you would check because you will never know what could be happening in them.

I chose to use algorithmic trading or a bot to trade because I don't get much time to chart multiple times in a day since I have other priorities to attend to. The bot that I'm using is Gunbot (https://gunbot.ph), and that's how it's going for me.

Common combinations that I use is

• Bollinger Bands
• RSI

The combination of the two above makes it straightforward for me to trade. Some built-in strategies are grid strategies, which are hard manually to do but super beneficial to do.

Fro the numbers for trading indicators we have, but it was RSI and MACD are what I usually used as they seem to help me a lot when it comes to making analyses.
https://www.yoreoyster.com/blog/best-indicators-for-crypto-trading/

And as I read the above replies, they are also using this one. But of course, it is your choice if you use many indicators what is important is that you are comfortable with them and the results are also satisfying. But if were just new in trading, I suggest to focus on those tools I've mentioned above.

I recommend to learn every indicators and use what you think is very helpful for your daily activities.
MA, RSI, and MACD are the common combinations of indicators, they can tell you the trend but still if you know other indicators, you can confirm if your analysis is correct or wrong that’s why it is still important to learn more. Trading doesn’t end with those indicators, you can also look at the VOLUME and PRICE to see the future trend, this is a broad process but once you do master it, trading will be more easy for you.

•EMA
•RSI
•MACD
•BB
•Fibonacci (optional or situational)

Lastly, or in default... Support and Resistance line yet this would really be the common and much needed
on where you do at least know on where are the possible ceiling and floor in the current price.

Some indicators are not much needed on some certain condition but be sure on how you would make use of them
or when they would really be relevant.

Options have been pointed out above and that's right, in addition, never forget to have a stop-loss limit and place your trade, this will help to minimize your loss because, in spot trading, you will make a profit when the market price increase and loss when it will decrease. 

And next apply those tools examples given above, RSI, MACD and etc.
Get your FA and TA analysis to discover price trends using these tools MACD and Bollinger bands which are very helpful to forecast the price.  And find automated trading alerts that can ping you when met with your expected price range.

In addition with the familiarization with those TA tools, much better if you will also familiarize yourself with the coin or token itself. It will give you idea why they are having such trend and where will they be heading next. Subscribing to their social media channels would also help as you can get some tips what are they having for immediate plans. Whatever they are publishing with their updates, will have a contribution on how they are performing in the market.

It seems most people are missing out one of the most important tools to determine the support and resistance of a given asset at a given time, that is the Fibonacci retracements. This coupled with either MACD or RSI can guide you well on spot market, mostly with coins of high trading volume and market cap.

Avoid using such indicators with shitcoins that can easily get pumped and dumped, or else you will get rekt.

You are definitely right, just that drawing lines indicates the extent of the overbought or oversold market. I have used it many times and it worked for me. What I have noticed in trading is that there is no one way in making profit, different analyses and approaches can be used to achieve a good result.

Yes profit is individual based and I believe whatever you are doing in trade that is keeping you on profit, you have to continue with that, if you change from it then things may start to go wrong. Drawing of lines is one of the ways an individual can understand his trade and make profit but it may not be the same for another person because they won't even draw the line from same spot, it just depends anyway.

I would recommend EMA and MACD as the biggest two on my list. I have to say it is not really the best way to invest just based on these things, you should look at other methods as well. I agree that RSI is great too, and Bollinger Band is also not too bad neither.

You have to realize that none of this matters if whales or people who are powerful enough to manipulate the markets sees what people are doing and what they are expecting and doing the exact opposite to make money. That is the bad thing about crypto, people could turn the movement around with enough money because regulations are axed in crypto and whales could do whatever they want here. So be careful when using them.

All the widely available indicators are useful for any trader, however you need to know how they are calculated, what are they supposed to indicate and how you can use them, only then you will be able to get what you need out of an indicator, with that being said be careful, there are many people that add 10 indicators or more to their charts making them unreadable, when truth to be told you only need 5 indicators maximum to create a strategy that can make some decent money out of the markets.

The best way to learn trading is just skip of trading tools or traders.Don’t follow anything,just do trading my creating own strategy.It’s possible of losing money for sure.But it will be the temporary one,it’s not a permanent one.You need to find the high potential coin first.Then you will get the loss percentage will be less.Because it’s not a easy task to ,you need to study the full background of project.

fibonacci combined with price action analisys will be great system to earn profits. usually to identify trend, traders using moving average or trendline and too analize correction or continuation level could use fib retracement and fibo expansion. this is simple system that could applied by all traders.

Indicators are very important, and they all have different usage when it comes to making your trading strategy. Its hard to recommend the basic indicators especially if you are not yet familiar on trading, try to learn first how to trade and read every indicators and know their functions, you might be more effective if you have knowledge on them. MA, SMA, FIBO, RSI are the common indicators for me, and I rarely use other indicators just to confirm the trend but still its helpful sometimes. If you want to be a trader, make time for this.

Thank you all for the replies, I didn't expect that many people to join in :)

I've been using fibonacci combined with BB and EMA.


In 2019-2020 I used a lot filbfilb's predator indicator and it was performing quite well at the time.

I've been trying to build an automated trading bot with a friend of mine and I am exploring different TA approaches which we can test out.

If you have an indicator that is performing well so what is the point of leaving it? Always follow what is working for you in trade and not to be confused by others because if you allow them get you deceived you can keep going round in circle and wasting your time. I like sticking with what works.

There is a good chance that something that works for you today, may not work for you tomorrow. So, there are tons of people who end up not knowing what to do when their well working system ends up suddenly not working, or even gradually. This is why I believe that we should not be focusing on making that back, I believe that we should be focusing on profiting a bit better in the long run.

This doesn't mean that you can't make a profit with your old system ever again, it may make a comeback, so it could go from 100-80-50-70-100 all over again. It just means that it doesn't really hurt to have some sort of backup plan and some indicators to know in case yours starts to slow down.

trading shitcoin doesnt need any indicator to analize its price based on technical. just following hype and trend will help us to earn money , but we must take profits as soon as possible and dont ever hold it too long or we will gonna rekt.

price action analisys was difficult technique and need long time to understand price habit. maybe full traders will faster applied this strategy due they have more time to monitor price.

+1, if you don't find your indicator is not performing well for sure you are overthinking trying other indicators.
For me, sticking to and mastering a technique or indicators or how you do trades will help you to become a good trader. Having consistency is the key especially in trading because not all of the trades are winning.

Same thing here.

I only use those indicators because they are so easy to understand, the more simple, the better. Too much indicators in your price chart is a little bit confusing in my opinion. You just need RSI to spot divergence, and the resistance and support to know where to possibly enter a trade because mostly if the support and resistance has been broken, the price would dump or pump for sure.

You also need to spot the higher highs and lower lows for the trend line. It is also a great combo for your RSI strategy.

I cannot recommend for anyone to do something like this, trading and investing are like huge competitions in which your way to keep the score is the amount of money in your account, if every single trader out there is trying their best to improve, then how do you expect that you are going to be able to outsmart them and invest in the right coin when you do not know anything about the markets? It is imperative to study the markets if you want to earn money, otherwise you will lose your money and learn noting from those losses.

This can be a very varied question. One can have a just 2-3 basic indicators in his view and still can achieve great heights in trading and on the other hand someone might have like 10 indicators but is still losing all his trades, for me personally I feel keeping a MA band of around 3 MAs covering all the time frames and RSI along with a Momentum indicator liking MACD is enough for you, rest play is with pivot points, quantitative data and patterns.

Building an automated trading bot is not easy as it needs to know more indicators to analyze the market. As we know that the market will always change, so you need to learn more about the indicators. Using Fibonacci, BB and EMA is good but adding Bollinger Band, RSI, and MACD as supporting indicators will help you analyze. But I am not sure if the bot can detect the change if the market change so fast. Good luck, @OP.

trend line and chart pattern maybe could be simple trading system but profitable, i see many traders only use this and they have good result consistently. for some traders, simplenes could make them comfortable to analize market. and maybe combining with fibonancci will help us to identif level correction and continuation.

I can't imagine if these 10 indicators are used simultaneously, of course this will make us dizzy, because each indicator does not necessarily show the same signal, so maybe one indicator is time to buy, but other indicators have not appeared. therefore I agree with you, using 3 indicators may be enough to determine the direction of our transactions. sometimes indicators are not always correct in giving signals, therefore we must know how to anticipate

There's no gainsaying that the numerous indicators on platforms exist for the reason that each of them is used by one trader or the other. There are done I would find utterly useless but I also see certain traders mention them as useful. I guess it's the "one man's meat is another's poison" type of thing. Having so much indicators on platforms often complicates trading. The logic is to keep it simple. I like to use and depend heavily on line indicators of Support & Resistance, Pivots and Trendlines and then mix with rsi and MA for crosses. Keep it simple. Trading shouldn't be complicated.

Always keeping it simple with few indicators on the platform that you trade with is better of than a whole cluster of indicators that will end up confusing you. Usually newbies make a whole of bunch of indicators thinking it is going to be helpful but with the confusion, you see no progress is made. I have learnt this lesson myself that it is better to master few indicators.

Indicators are useless unless they are part of a coherent strategy, there are people using no indicators and still making money in the markets while there are those that have their charts full of them and lose money, unless you know what you want to measure in the market and which indicator is best for that task then you will be trading blindly, which is what most people do, so I will recommend that you read more about the indicators, understand they are supposed to measure, how they are used and then find a way to use them together so you can trade the markets.

Not an indicator type of trader, am all about naked charts and a touch of technical analysis but depending on which assets you are trading, for example if you trading currencies use tools like the kill switch found on trading view and its a handy tool for me has it shows when markets are most volatile for faster market moves and bigger profits but anything else I just read they charts as they are.

That's up to you mate. What makes it important is we are making a profit, not huge losses.
Even for me, TA and FA are very important in trading rather than using trading indicators but if we are looking to increase our chances, these indicators seem of huge help. And aside from that, even the use of all indicators never means that we are already safe and have a profit assurance, the results of our trades determine how we respond to the market condition which depends also on how we make decisions.

In general, it all lies in decision-making and in how we evaluate the market. Sometimes we neglect to follow the indicators as we follow our emotions. That was the fact.

1 good tool you can use is the Fibonacci Retracement tool but this could only work through a uptrend and downtrend that do pullbacks and doesn't work with sideways trend or horizontal trend and the Fibonacci tools is much more effective if you use other tools like RSI.

Once I was looking for a good indicator, and in Youtube videos there is a speculator that uses the ichimoku cloud plus two more lines that I don't remember the name of, I know that those two indicated when to enter the market and when not, and the truth like if i figured out what it was, i checked it several times and it had a high rate of return.

Of course this is just a way of seeing the market and operating, it is not a sure thing, but as far as I have seen everything that has to do with technical analysis, it is the closest thing to success.

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Momentum and Price Levels

Someone should talk to some of those Telegram channel socalled hero traders. Get them to open an account here on this forum,,, and post the trades one by one. OR someone here posts on their behalf, and show everyone which indicators they use and why, and then we can get a long success/failure story with proof.

I mean,,, when you recommend, success rate is all that matters right?

The thing is that, that shows exactly when the market "should" go up, and not when it will be. These type of situations allow people to make money "most" of the time which is why people end up believing that they could make money since they see it working most of the time. However timing and managing your bankroll means a lot in this case.

This is because, you could end up with a good return once, and then double your investment next time when you get in and lose more because that was a wrong one, so you always need to be careful, grow your investment slowly each time you get in, and make sure that you enter with money you could lose and still go on.

To be honest, I rarely try to use them at all. I often have enough of my own market analysis. But, it is important to understand that not everyone will be able to master this option.

As long as you are making money that is all what matters, many people concentrate too heavily in what other traders are doing not understanding that what affects them the most is what they do or do not do, indicators as their name implies are nothing more but a few formulas that help you see more clearly an aspect of the market and nothing more, so if you can trade the markets by just looking at the price and the volume then that is fine, and it could even be argued that it is a superior way to trade as if you use several indicators it is not rare to find contradictory signals, making your trades unnecessarily more difficult in the process.

Are those groups you mentioned good enough? On why you think they can be helpful on this thread but maybe some of those members are already a member on this forum and we don't know maybe they are already done commenting here. There are still good traders here in the forum and I can trust them more than the outsiders. You need to be honest when you recommend.

You can indicate if how much is the success rate so that the OP will have an idea if what to expect. Success rate can matter but even if the success rate is not that high, there are still chances that it will work perfectly. Sometimes it only depends on the one that uses it.

In general, I advise you to work better so that you yourself know the analysis well. It can give a trader much more than indicators.

My point is not that these groups are good enough,,, rather my point is no group is even close to being good let alone to guarantee profit, no matter which indicator or strategy they use.

And if anyone else thinks differently,,, then my challenge is to ask them to post their results in forum and see for ourselves which is good long term,,, but I know it eventually ends in loss just to prove no indicator is good for profit, only for enjoyment :)

I studied chart formations on daily time, usually their is a repeated price action pattern that occurs from daily to 12 hours, 8 hours, and 6 hours, timeframe, while using a trendline on a lower timeframe for entry, a break out of price outside the trendline, I also use price breakout outside the Bollinger Band for take profit, EMA indicator for trend direction, I only want to follow a simple KISS trading principle, keep it simple stupid, while avoiding a clusters of indicators that can indicate contradictory signals, candlestick patterns are also indicator, they reveal a lot of information about the next direction of the price.

I do agree with this. I believe that there needs to be a bit of a leeway between the TA and the real results. I get that TA "could" bring good results, but that doesn't mean that you should be focusing just on that, I get that it is not going to be that easy, but it is going to be something that is quite amazingly just "relevant" and yes it is so relevant that sometimes it makes you money but that's about it, there is no other connection between them at all.

As I understand, some people see these indicators as the end result and invest accordingly and they hope that what they see on the charts will happen exactly as they hoped it would and that is how they are going to end up with a profit. I doubt that would happen but there is also nothing that I can show to prove them wrong neither, only if we go back and show them in retrospective.

Yup! In the end the only relevant thing is a technique that can be replicated,,, success that is sustainable in the long term and replicated by others because short term results is easy to do. Anyone can take out one period of lucky profits and take it out of context. But a group that can show long term years of results is the only relevant thing to me. Besides the fact we all love reading and seeing TA :)

I use
BUY
Price is above ema(21)
Price is above psar
macd is above macd signal.

SELL
MACD is crossing down macd signal

*** using the opposite for short positions
I also additionally check ADX for filtering out the ranging market.

I use this one for 1H time frame. Sometimes I need to optimize it with the current market conditions:

For LONG:

Open
RSI (14) is up by 20% in last hour
Price is above SMA(50)
RSI (14) is below 70

Close
MACD (12, 26, 9) is crossing down MACD SIGNAL(12, 26, 9)

That is true, if you were trading anywhere between October of 2020 to October of 2021, that would mean that you could have profited a lot if you are lucky. Of course, it doesn't mean that you will profit for sure, there are some moments even during those days where the price went low, like during may of 2021 for example, but that is rare and going up is more common.

Do not focus on making profit just on the correct hyped times but try to use the lower times like today to make a profit. You may not make the profit today, but you could at least make a profit in the future based on what you are doing today and that means a lot for anyone who wants to see the future.

I would advise you to pay maximum attention to personal training, rather than relying on indicators and so on. Very often this may not give the desired result.

Lucky is exactly the thing a lot of traders do not understand they are when they get profit again and again. Lucky because they chose to trade in the bull run, without them ever knowing they were in a rally. Anybody literally would make money when prices go up and up and up for no reason.

Here,,, again I want to say a lot of people forget to factor in luck and replicability. Strategy has to be replicable in results. If not,,, it is not a strategy!

true that's a good suggestion, because indeed most results of relying indicators which they learned only in the internet are not good and they all ended up massive losses. So as long as you can afford to take courses, that would be better option to be honest because surely you will have a good results after all.

I would generally advise learning to work without indicators. It seems to me that it will be better for a trader, because if you rely on your knowledge, the result will always be better.