By Yaroslav Krasko
Crypto trading offers lucrative opportunities but demands expertise and the right analytical tools. TradingView stands out as a premier platform for technical analysis, providing traders with powerful indicators to navigate volatile markets. Here, we break down the top 3 TradingView indicators for crypto trading, along with actionable strategies to enhance your decision-making.
1. Relative Strength Index (RSI)
What Is RSI?
The Relative Strength Index (RSI) measures price momentum on a scale of 0–100. Key thresholds:
- 70+: Overbought (potential sell signal).
- 30–: Oversold (potential buy signal).
How to Use RSI in Crypto Trading
- Divergence Detection: Spot trend reversals when price and RSI move oppositely (e.g., price hits new highs while RSI declines).
- Zone Exits: Wait for RSI to cross back above 30 (from oversold) or below 70 (from overbought) for higher-confidence signals.
👉 Master RSI strategies with real-world examples
Pro Tips from BikoTrading:
- Combine RSI with other indicators (e.g., MACD) to improve accuracy.
- Focus on higher timeframes (4H/daily) for reliable signals.
- Avoid overtrading—RSI isn’t infallible. Use it to confirm trends, not dictate them.
2. Moving Average Convergence Divergence (MACD)
What Is MACD?
The MACD oscillator tracks trend strength using:
- MACD Line: Difference between 12/26-period EMAs.
- Signal Line: 9-period EMA of the MACD Line.
- Histogram: Visualizes momentum shifts.
Trading Strategies
- Bullish/Bearish Crosses: Buy when MACD crosses above the signal line; sell when it crosses below.
- Histogram Analysis: Strong green bars = bullish momentum; fading red bars = potential reversal.
Key Recommendations:
- Align signals with the broader trend (e.g., ignore sell signals in a bull market).
- Adjust settings (e.g., 5/13/34 EMAs for faster reactions in volatile cryptos).
3. Bollinger Bands
What Are Bollinger Bands?
Three lines plotting price volatility:
- Middle: 20-period SMA (or 80-period for clearer signals).
- Upper/Lower Bands: Standard deviations (±2 typical).
How to Trade with Bollinger Bands
- Overbought/Oversold: Price touching upper/lower bands suggests reversals.
- Squeezes: Narrowing bands indicate low volatility, often preceding breakouts.
👉 Optimize Bollinger Bands for altcoins
Bonus: Greenwich Indicator for Market Cycles
Spot trading requires understanding market cycles. The Greenwich Indicator (free version) analyzes:
- Liquidity levels.
- Global support/resistance zones.
- Cyclicality models to pinpoint undervalued/overvalued assets.
How to Access:
- Fill out this form.
- Receive the indicator instantly.
FAQ
Q1: Which timeframe is best for RSI?
A: Daily or 4-hour charts reduce false signals versus shorter timeframes.
Q2: Can MACD predict exact entry points?
A: No—use it alongside volume analysis or trendlines for precision.
Q3: How often do Bollinger Bands fail?
A: In strong trends, price can "ride" bands. Confirm with RSI or volume.
Q4: Is Greenwich suitable for beginners?
A: Yes! Its visual cues simplify cycle identification.
Final Tip: Backtest strategies on historical data before live trading. Consistency beats chasing every signal!
For deeper insights, explore our advanced trading guides.