Today we’ll take a look at the Relative strength index (RSI for short), what exactly it is, how it’s calculated and how you can use it to level up your trading game.

The RSI is a momentum indicator used in technical analysis (TA), first developed by J. Welles Wilder. Simply put, it measures the speed and change of price movement and signals when a cryptocurrency or an asset is either overbought or oversold. It holds values between 0 and 100 and is typically calculated with 14 periods (more on that later). Usually, it’s plotted as an oscillator (a line graph…

In this uncertain crypto market you can save yourself a huge amount of stress and money if you know how to properly set stop-losses. While this sounds like a no-brainer, many people just ignore it or sometimes set them up incorrectly, actually making them sell at suboptimal timings. Here we’ll take a look at what exactly stop-losses are, how to set them up correctly and what common mistakes you should avoid.

Stop-losses are predefined orders that execute automatically either for selling or buying a cryptocurrency. It’s designed to limit a trader’s loss for their open positions. Simply said, it’s like…

As you might know, cryptocurrency and blockchain are the quite a hot topic in the past few years and investments into the industry grow bigger day by day. With high demand, euphoria and sufficient funds, the cryptocurrency market develops and grows at an unprecedented rate, similar to the early evolution of the internet and companies that grew in conjunction with its rise. This unrelenting development is accompanied by unstoppable crypto news that bombards us on social media and other news outlets, which can become even a bit annoying on a nice Saturday evening.

Nevertheless, the news has quite a big…

Any crypto trader that relies on technical analysis will look for different signs and indicators that will forecast upcoming price movements, reversals, and continuations. With their help, he can spot potential trade opportunities and hopefully create a profit. For someone that’s just starting to learn TA, understanding all these signals can quickly become extraordinarily confusing and mind-boggling as there’s an overwhelming number of indicators he can try to use, hoping they will show him the right way.

That is why today I’ll be showing you one of the simple ways you can forecast future market movements consistently. Even though it’s…

When trading with or buying your cryptocurrency on an exchange (even if it is your first time), you should always observe the order book before placing your orders. »What even is an order book and why the hell should I care to look at it?« you may ask. Here I’ll explain everything you need to know in order to read the order book as well as any other savvy trader and use it to your advantage.

The order book is an electronic list of all buy and sell orders of a cryptocurrency, which are organized by their price. It’s dynamic…

This is the second part of my “How To Find a gem” articles. Decided to cut this guide into multiple parts so everyone can take their time and study it in detail.

  1. Social Signals

After the fundamental analysis, you should analyze the so-called Social signals. This includes everything that can be found on social media, telegram groups, discord groups and other similar platforms. Why is this important? Because with the social media analysis, you can understand the market sentiment of the project, which should not be underestimated.

Telegram and twitter are usually used by teams working on crypto projects as…

In the recent whirlwind of crypto-mania, it became difficult to find new untouched opportunities. While each day a new cryptocurrency is created without a real intrinsic value or purpose, the demand for finding the next gem in the dirt climbs higher and higher. All of us want to be ahead of the game and find the next best token that will solve an unforeseen problem or create amazing convenience (and at least 10x our investment of course).

To our demise, distinguishing such projects from the pointless or downright scammy coins became tougher and tougher as every team wants their project…

Simply put, the Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator. To calculate the MACD, the 26-period exponential moving average (EMA) is subtracted from the 12-period EMA, and if you want to read more about these MAs, check out my previous couple of blog posts. As a result you get the MACD line (shown as a blue line in the graph below). On top of the MACD line, the “signal line” is plotted (shown as a yellow line on the graph) that is calculated as a 9-period EMA of the actual MACD.

The MACD and signal lines are…

Last week we looked at what different types of moving averages (MAs) are and how they differ from one another, so if you haven’t read that, be sure to check it out so you’re ready for the practical tips on how to trade MAs that we’ll be talking about today.

Everything below will be relevant for both SMAs and EMAs. So how do you know which one to use? As always, backtesting is the way to go. …

When you look at a chart posted on Twitter, you might wonder what those additional lines apart from the price action even mean. They’re called indicators, and in this article, I’ll tell you about the most widely used indicators out there: moving averages or MAs.

There’s two kinds of moving averages: simple (SMA) and exponential (EMA). We’ll start, appropriately enough, with SMAs. Essentially, at each period (each day on a daily chart and each 4-hour candle on a 4H chart, for example), the moving average is a single value: the average of the closing price for the last N periods…

BloodgoodBTC

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store