Cryptuminati

Top 7 magic Crypto Indicators: #1 Stochastik RSI

Education
BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Dear Cryptuminati,

Many beginners wonder which indicators to use. That's why I started this series with the 7 best indicators. It is not just any indicators, but those that are best suited for crypto trading.

#1 Stochastic RSI (StochRSI)

This is the king of all crypto indicators. When I trade stocks or indices, I use the normal stochastic . For Bitcoin and Co. I have gained MUCH MORE positive experiences with StochRSI! Many traders use Stochastik RSI , which makes it all the more effective. At Binance, it is one of the few standard indicators. It is often discussed in Facebook groups. I don't want to bore you with the mathematical calculation. In my opinion, it does not matter. Let's get in with the most important facts:

- The range above 80 and below 20 is relevant for traders.
- In these areas, the probability of a turnaround is relatively high.

In the chart you see two short situations. Entry has always taken place at the turnaround. The price target is in the lower turning range.

The result?

In the first case, the trade was a complete success. The second trade threw a loss. These two examples already show that you should not use StochRSI alone. In the long run, you will lose money with the StochRSI. That's why you should bet on several charting aids.

These indicators provide effective support:

- Two EMAs or SMAs (watch out for crossing)
- Supertrend (conversion is important)
- Bollinger Bands (breakthroughs at the top or bottom band)
- Trend, support and resistance lines

Many traders focus on entry. This is relatively easy with StochRSI. You should eliminate potential false signals with another indicator. I consider the exit to be much more important! The moving average (MA) 100, for example, can be considered as a price target. In the event of a trend reversal, it represents an interesting price target. As an intermediate stage one you could take a smaller MA. Alternatively, trend lines are available. It is also possible to exit via the volume . Here you can see in which candle there was an increased volume last. If this is exceeded, you sell in the next candle. These are just a few examples.

Conclusion
Never trade alone according to StochRSI! Always use additional charting techniques. Stochastic RSI is a powerful tool at all time levels, but it is not an all-round weapon. The crossovers are in the foreground. But there is no certainty that a trend reversal will actually take place.

The Eye of the Cryptuminati has spoken.

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Risk note: Everything is possible, nothing is necessary. All information is not a buy or sell recommendation.

Comments

Your chart is very nice.
please Follow me,
I hope my view can help you make more money.
+4 Reply
Cryptuminati Ronnie_Dong
@Ronnie_Dong, Thank you for your comment. I will take a look on your charts!
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Ronnie_Dong Cryptuminati
@Cryptuminati, thanks too. u r great
Reply
Very helpfull for a noob like me, thank you !
+1 Reply
Cryptuminati numedecod
@numedecod, Thank you very much! :)
Reply
Very interesting, thanks for sharing !
Reply
Thank you
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