The role of technical indicators in Bitcoin Cash (BCH)
Bitcoin Cash (BCH), Bitcoin Blockchain fork, has received significant attention in recent years due to faster transaction speed and lower payments compared to its predecessor. As a result, many merchants and investors are looking for ways to benefit from this new cryptocurrency. One effective way to do so is to use technical indicators in trading.
What are the technical indicators?
Technical indicators are diagrams and models that help merchants analyze the behavior of cryptocurrencies and predict future price changes. They provide valuable views on market opinions, trend strength and possible translations or continuous ones. In connection with Bitcoin’s cash (BCH), technical indicators can be used to identify potential purchase or sales options.
Why are technical indicators useful in trading?
- Trend Identification : Technical indicators help merchants identify trends and models in BCH price activities. By analyzing moving averages, relative strength index (RSI) and other indicators, merchants may get a better understanding of the general market.
- Risk Management : Indicators such as bollinger lanes, stochastic oscillator and MacD (sliding average convergence) help merchants set price targets and identify any support or resistance areas.
- Confirmation Shop : By combining multiple indicators, merchants can increase opportunities to identify accurate shops. For example, using a mobile average cross strategy with Bollinger Bands can confirm the possibilities of buying by rejecting the signals sold from other indicators.
- Risk Prize Analysis
: Indicators help merchants analyze risk-beam relationships and make conscious decisions on where to buy and sell orders.
BCH’s popular technical indicators
- Moving averages (MA) : Mas are a fundamental indicator that helps merchants identify trends by comparing closing prices to the averages of different periods of time.
- Relative Strength Index (RSI) Measures the amount of prices to determine or top conditions in the market.
- Bollinger Bands : Bollinger lanes visualize volatility by drawing a moving average lane and two standard deviations above/ below it by helping merchants identify potential purchase or sales opportunities.
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- MACD (Average Sliding Differences) : The MacD uses two mobile average to calculate a speed indicator that can help merchants identify the turns of the trend and strengthen purchasing/sales opportunities.
Example of BCH Trading using Technical Indicators
Suppose we will trade Bitcoin Cash (BCH) in the daily chart with the following indicators:
Sliding mean 50 : 20 days ma
Sliding mean 200 : 100 days ma
* Relative Strength Index (RSI)
: A 14-episode RSI
* Stochastic oscillator (14-3) : Stochastic 14-cycle value compared to 3-session value
These indicators can be identified with potential purchasing options when the price exceeds the lower Bollinger lane and reach a high bollinger lane. At the same time, sales opportunities arise when the price drops below the lower Bollinger and remains in the Upper Bollinger.
conclusion
Technical indicators are an effective tool for merchants to analyze market trends, identify potential purchasing or sales opportunities, and make conscious decisions about where to buy and sell orders. By combining multiple indicators into a strategy, merchants can increase their chances of success in trading in Bitcoin Cash (BCH) and other cryptocurrency.