We have all witnessed the rise of cryptocurrency in recent years. The jump in the prices of cryptocurrencies has attracted many people to invest, says Rowan Relton. However, there are still major uncertainties regarding the subject that cause people to restrain from investment.
In this article, Australia’s commodity trader Rowan Relton will tell you about some of the best cryptocurrency trading indicators.
Who is Rowan Relton?
Rowan Relton is a trading professional with over 15 years of successful experience in trading in international commodity trading and arbitrage.
What is Cryptocurrency?
It is a form of payment that can be used to exchange online goods and services, letting you buy goods and services and trade them for profit. The currency works by using a technology named blockchain, a decentralized technology spread across computers that manage all the transactions and records. It is quite similar to stocks, currency, or commodity trading.
If you want to start trading cryptocurrency, you need a solid trading strategy. To develop certain strategies you need some indicators that can help you cook strategies that will help you in crypto trading. Here are some indicators that will help:
1. Ichimoku Cloud Indicator
This cloud indicator has a collection of technical analysis tools, including all the help you need in one all-inclusive indicator, says Rowan Relton – trading expert. It has multiple features like finding support, indicating entry and exit signals. Ichimoku cloud indicators determine the current strength of a trend. This indicator was created by Goichi Hosoda to predict the movement of the Japanese Nikkei index.
Before using the indicator it needs to be set up properly. Originally settings for this indicator were 9, 26, 52, 26. But the setting to trading cryptocurrency has recently changed to 20, 60, 120, 30. The difference between these settings occurs because of the difference in the hours of trading between cryptocurrency markets.
2. Relative Strength Index
Indicators are basically a graphical representation that shows functions and formulas that can help you as a trader to stay one step ahead and predict future crypto asset prices. It is technically one of the most popular cryptocurrency indicators. As its name suggests, the tool helps you measure the strength of a trend and the price of a digital asset. The RSI can swing back and forth between 0 to 100 and the middle line, 50 separates the fall and rise of a trend. For example, if the signal moves and takes a leap above 50, the uptrend is firm. If it falls to below 50, the trend is bearish.
Contrary to major beliefs, cryptocurrency is neither a kind of gamble, nor a tool to help people get rich overnight.
Cryptocurrency trading is certainly not a gamble. Without the accurate tools and indicators, one could fail terribly in the cryptocurrency market. The most important thing when stepping foot into this market is to learn continuously. Without the sufficient and updated knowledge, you would miss out on the ongoing trends and thus, fail to compete with the rest on the market.
Beware and keep all the dangers in mind. If this market can give you a lot of money, it can take an abundance of that away too, recommended by Rowan Relton.