What are indicators in crypto trading

Indicators are analysing tools that are used by traders to predict, analysis and check the future price of an asserts, goods or Cryptocurrencies using technical and mathematical calculation of the previous price of the assert in the exchange market, definitely price of goods and assert are going to reoccure, either on a long time or short period of time.

Importance of an Indicator

• Indicator are softwares used to assist traders perform safe trades, because it helps improve the prediction of the probabilities of an increase or decrease in price of the desired Commodity.

• Indicators help traders maximize their profit from business transactions and reduce their loses from their business transactions.

• Indicator information trader on the best time to enter a market and the best time to leave the market

• indicators are also used to analyse the strength of a trend of an assert in the exchange market at a particular period of time.

• Indicator help tell traders when a commodity is oversold or when a goods is overbought, that is is alert traders when the is high buying pressure and when the is high selling pressure in an exchange market.

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Steps to add an indicators on the chart on Binanace

Step 1:

You should visit Binance.comwebsite

Step 2:

You should Log in/ sign up to an account and click on the Trade tab.

Step 3:You should choosed your desired trading options, which is "Advanced".

Step 4:

Click "technical indicator " to see different indicators used in Binnace

Step 5:

Search for any Indicators of your choice for example i choosed "vol"

Step 6:

you can configure the setting to your desired period and your dcolor

Step 7:

Click on"save" button to save your changes made

Steps to add an indicators on the chart on Tradingview.com

Step1:
Login or sign up on tradingview

Step 2:
Chick on indicator

Step 3
search for desired indicator

Step 4:
We have successfully inserted an indicator

ADX indicator

The Categories of Indicators

They are three Known categories of indicators used by traders which are,

Categories of Indicator

• Volatility Based Indicators
• Momentum-Based Indicators
• Trend Based Indicators

Volatility Based Indicators.

Volatility Based Indicators are used in a volatile market to know if the range Volatility experienced in the market.
They were designed to calculate the probabilities of fluctuations which are also called upswings and downswings. Trader uses this indicator to sell their commodities on a
a swing high and they sell their commodities on a swing low, to increase the profit in their business transactions
For example

Types of Volatility Based Indicators

• Bollinger Bands,
• Keltner Channels (KC),
• Donchian Channels,
• Average True Range (ATR) etc

ATR chart

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Momentum-Based Indicators

Momentum Based Indicators aka (MBI), are indicators that helps traders calculate whether a commodity or crypto currencies is been overbought or oversold in an exchange market. Users uses this kind of indicator to check and analyze and predict when to buy an asserts when they are been oversold and sell assert when the are over bought.

Types of momentum based indicators.

• Moving Average Convergence Divergence,
  (MACD)
• Relative Strength Index (RSI),
• Commodity Channel Index (CCI),
• Stochastic etc.

Stochastic indicator

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Trend Based Indicators

This are indicators that helps traders analyse price of commodities, with help of trend, the are used to analyze the strength of trends, that is the are used to analyze trends and their buying pressure and selling pressure, if selling pressure are high the trader buys commodities or asserts at a lower price and the sell their commodities, asserts or crypto currencies at high price range,so the will make larger profits

Type of Trend Based Indicators

• Ichimoku Kinko Hyo,
• Moving Averages,
• Average Directional Index ( ADX) etc.

For example

ADX Indicator

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Conclusion

My advice to crypto traders is that the should not perform prediction without an indicator because, the is a lot of danger involved, so every trader is advice to find two or three indicators that he or she understands and use to analyze and calculate properly before making any business transaction.
Note: one indicator is not advisable to uses for analysing, and to many indicator is not advisable to uses in a chart. To all trader it's is advisable to use three or two indicators to get a better result.

I am inviting

@vectorshore
@anyiglobal
@eberechi10
@kyara2
@jerryivan