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How to view Bitcoins technical indicators Bitcoin technical an

Date:2024-08-10 18:49:21 Channel:Crypto Read:


The four most famous international exchanges:

Binance INTL
OKX INTL
Gate.io INTL
Huobi INTL
Binance International Line OKX International Line Gate.io International Line Huobi International Line
China Line APP DL China Line APP DL
China Line APP DL
China Line APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.


For investors in the currency circle, if you want to play the Bitcoin market, you must be able to see Bitcoin's technical indicators. So, how to see Bitcoin's technical indicators? The following editor will give you a detailed explanation. I hope that through this article, investors can have a general understanding of Bitcoin technical analysis.

 How to see Bitcoin's technical indicators?

In terms of quantity, there are hundreds of technical indicators, but if you consider the frequency of use, scope of application and indicator accuracy, there are only a dozen commonly used indicators. Specifically, K-line, moving average, KDJ, and Bollinger Bands are the most familiar technical indicators for investors, and they play an important role in analyzing trend trends and judging market entry points.

The editor believes that there should be three steps. First, understand the classic form of the indicator and its meaning, and be able to identify what kind of indicator the form belongs to at the first time; secondly, actual combat adjustment, through actual combat, find the indicators you are good at, and find ways to use indicators efficiently; finally, summarize and form a set of systematic indicator use strategies. In this process, it is important to communicate with senior investors and analysts. They are happy to share tips on using indicators, which can help you reduce invalid operations and save you from detours.

 How to use Bitcoin technical indicators?

There are rules for using technical indicators. Its primary function is to assist in market analysis. After determining the general trend through important financial news, technical indicators are used to judge short-term trend changes. If an upward pattern appears, it indicates that the market outlook is bullish, otherwise it indicates a decline; second, technical indicators can be used to verify the market. Will the future price trend continue the previous trend or reverse at a certain point? The signals sent by technical indicators will tell investors the answer.

The strength of technical indicators is to instruct investors to place orders, but their weaknesses are equally obvious. Because of the existence of passivation and divergence, indicators often give wrong signals. In order to screen practical signals, experienced investors know how to mix and match multiple indicators, such as K-line + moving average, K-line + Bollinger Bands, moving average + Bollinger Bands, etc. The more cautious the use of indicators, the less chance investors make mistakes, and the more likely they are to win the transaction.

There are many kinds of K-line chart technical indicators, but the most favorite and practical and easy-to-understand indicators of the currency circle editor are the moving average (Ma line) and Bollinger Bands (BOLL) indicators.

1. Moving average (Ma line) is the average moving line. Common ones are Ma5, Ma10, Ma30, and Ma60, collectively referred to as 5-day, 10-day, 30-day, and 60-day moving averages. Each moving average has a different color in the K-line chart, and the meaning it represents is also different. Many friends have seen the Ma5, Ma10, Ma30, and Ma60 mentioned in Xuanzang's market analysis article in the market. When we analyze short-term market changes, we use the 5-day and 10-day moving average indicators and the Bollinger Bands indicator described below.

2. Bollinger Bands (BOLL): Bollinger Bands are a moving average range in the K-line chart, which are composed of upper rails, middle rails, and lower rails. The upper, middle, and lower rails correspond to the pressure level, volatility level, and support level we usually say; the Bollinger Bands indicator represents an overall trend of the current market, and the trend of the Bollinger Bands can also be used to predict a market change in a short period of time.

Friendly reminder to investors: K-line technical indicators are best used in USDT-denominated trend charts such as BTC-USDT and ETH-
USDT. For altcoins, their pricing method is often Bitcoin-denominated. This also has a problem, that is, the price of BTC is also fluctuating. For relatively strong altcoins, if Bitcoin plummets by 20%, they will also plummet by 20%. At this time, if you look at the trend chart of altcoins-
BTC, you can hardly see the waterfall cliff, which is very disturbing information.

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