Blockchain and Cryptocurrency Intermediate - Practical Demonstration of How to Use the Signals of The Random Index to Buy and Sell Cryptocurrencies

Buy – FIL/USDT

On the FIL/USDT chart, the J-line was moving above the K-line and D-line which for me was a good indication to go long.
The oscillating lines were moving closer to the overbought zone which for me shows that there is a strong buying pressure at that moment. I entered the market at 74.4135 USDT and using the 1:1 risk-reward, I set my take profit at 76.4560 USDT and my stoploss at 72.4560 USDT.

Buy – SOL/USDT

On the SOL/USDT chart, I was able to spot that the J-line was about to cross above the K-line and D-line which for me was a good buy signal and I went long. The oscillating lines were close to the 30 level after coming from an oversold level below the 20 level, which for me showed that there is still a lot of buying pressure at that moment. I entered the market at 74.078 USDT and using the 1:1 risk-reward, I set my take profit at 79.098 USDT and my stoploss at 69.098 USDT.

Sell – MATIC/USDT

Using the KDJ indicator to identify a sell signal on the MATIC/USDT chart, the J-line was still below the K-line and D-line which for me was a good indication to go short because it means that there isn’t any strong reversal signal yet. I entered the market at 1.62714 USDT and using the 1:1 risk-reward, I set my take profit at 1.54664 USDT and my stoploss at 1.70745 USDT.

Sell – AAVE/USDT

Using the KDJ indicator to identify a sell signal on the AAVE/USDT chart, using the same strategy, I followed the signal from the oscillating line on the KDJ indicator. The J-line was still moving down below the K-line and D-line which for me was a good signal to sell. Also, using the 1:1 risk-reward ratio, I entered the market at 403.33 USDT, I set my take profit at 383.45 USDT and my stoploss at 423.41 USDT.

Technical Indicators like the random index KDJ indicator has proven to be a very powerful and reliable indicator when combined with other technical indicators. The random index KDJ indicator can help trader identify the trend the market is moving and not only that, it can help spot trend reversals, and with this, a lot of traders make use of the indicator for buy and sell signals which is one of the strengths of the random index KDJ indicator.

However, it is good to know that there isn’t any indicator that is 100 percent accurate which means that there is still room for false signals to appear. That is why it is advisable to always trade with caution when using any technical indicator signal, and also, always combine the KDJ indicator with another indicator for signal confirmation. Above all, the random index KDJ indicator is a really good indicator that when used correctly can help spot good entry and exit points to make more profits.