Despite the fact that this year’s hype around the cryptocurrencies has clearly weakened, investors’ interest in this market remains. In trading on the cryptocurrency market it is very important to track the news, because it is very sensitive to them. But technical analysis will also be very useful. Today, I would like to offer you an indicator that has proved itself in cryptocurrency trading. It will help to carry out a qualitative analysis and make an optimal trading decision. The work is based on several indicators – MACD+OSMA + STOCHASTIC 3XSIG MTF. And because of that, the percentage of false signals is small. Indicator for cryptocurrency trading is set as standard. Earlier I described it in detail in the article “Cheat sheet on Metatrader 4”. You can download the indicator file by clicking the link that I will post at the end of the article. This theanalysis tool can be used to trade on any cryptocurrencies and timeframes.
How to use the indicator for cryptocurrency trading
This means that there are two types of signals to open a trade position.
Variant 1. Track divergence. This method demonstrates high efficiency in trading any trading instruments, and cryptocurrencies are not an exception. Let’s see an example:
As we can see, the Bitcoin rate continued to grow. At the same time, the indicator has already signaled a probable change in the direction of movement. The next peak of his columns was lower than the previous one. We have a divergence on the chart. It means that we can consider opening a sell order. And if at that time any negative news has been published concerning the Bitcoin market, the probability of a successful sell transaction increases.Variant 2. You can enter the market after the indicator crosses the zero level.
If the indicator bars moved from above zero to below zero and their color changed from blue to red, it means that you can make a decision to sell.
If the indicator bars have moved from below zero to above zero and their color has changed from red to blue, it means that you can think about buying.
In order to reduce the risk of an unsuccessful entry, I recommend choosing a filter for this indicator. And, of course, always follow the news background. Before you start to trade on the signals of this indicator, it should be tested in the demo trade.
Download indicator for cryptocurrency trading:indikator_kriptovaluty29.08.2018