Introduction
- SIMPLE MOVING AVERAGE
- EXPONENTIAL MOVING AVERAGE
- MOVING AVERAGE CONVERGENCE DIVERGENCE
In a tab trader, click the +f sign , click the plus sign and look for the above tools
that's all the indicators you need
first the SMA
the SMA created a line graph that closes follow the price movements
this will help you identify support and resistance as well as the when the SMA passes through the SPV
you will notice some ups and downs
KINDLY ADD THE INDICATORS ONE AT A TIME
THIS IS VERY IMPORTANT
you will notice what is called a SHIFT IN PRICE VOLATILITY
will call it SPV for shot
never trade without identifying the SPV
the SPV indicates when the current market trend has ended
a green SPV means a bullish trend has started
normally a GREEN SPV will be at the end of a bearish trend
before the SPV note the trend of the market I.e downward or upwards
but an SPV does not indicate when to buy or sell
and a RED SPV is usually at the end of a bullish trend
a RED SPV indicates a bullish trend has started
this is an example of an SPV. note the size
you must have a bearish or a bullish trend BEFORE a PSV before you use the indicators
never enter a trend if that does not occur even if all the indicators are there
you might sell at a loss or your profit will not be much
- if you see 2 PSV next to each other of different colours DO NOT ENTER
let's pick a coin
for example let's pick BTCD
first thing you do, select H4 or D4 time frame
this is called MAJOR TIME FRAME
Introduce four indicators into the chart by pressing the +f sign at the bottom of the screen, namely:
RSI RELATIVE STRENGTH INDEX
MACD MOVING AVERAGE CONVERGENCE AND DIVERGENCE
EMA EXPONENTIAL MOVING AVERAGE
WHY DO we need these indicators?
there are various indicators in trading but they are divided into two
indicators tell us about an event
LAGGING INDICATORS tell us when an event has happened.
they tell us when the price will go up or down and when to buy or sell BEFORE it occurs in the graph
these tell us when an event is about to happen
PRECEDING INDICATORS
since the indicator indicates after the event has occurred they don't help us much in selecting buy and sell points
as a trader this is what we need the most
the number one best indicator is RSI
NEXT is MACD
WHY?
RSI has an upper value of 75 and a lower value of 25
UNDERSTAND THIS.
WHEN THE RSI TOUCHES THE 25 level line or goes beyond it, you buy.
when the RSI TOUCHES the 75 level line or goes above it you sell.
let's look at RSI first
because they are indicators that can be used by default without adjusting
when the RSI PASSES BELOW THE 50 LEVEL LINE YOU SELL. WHEN IT PASSES ABOVE THE 50 LEVEL LINE YOU BUY
RULE ONE
here are two rules regarding RSI
I prefer when it goes beyond or above it
RULE TWO
you cannot use both rules at the same time
let me give examples
this is the current graph of BURST which shows RSI IS above the 75 level line indicating it is the best time to sell
RULE ONE applies
RULE TWO APPLIES IF I don't want to wait for long term when rule one will apply.
SECOND ANALYSIS OF RSI
that is the first analysis of RSI
when a bullish uptrend is about to occur the RSI shows a sharp swing up BEFORE prices start climbing
this is the best time to jump in and make good profit
an example
you can see the sharp rise IN RSI in this picture. this usually happens BEFORE the price graph at the top mirrors it.