The easiest way to make money from cryptocurrency

How to trade cryptocurrency using one indicator - Technical Analysis

Have you ever thought that there are simple ways to use cryptocurrency?

It is common to keep silent about these methods, but when cryptocurrency was created, no one thought about when to buy or sell, at the next stage, when it began to grow in value - everyone realised that it is necessary to buy and urgently buy, and what to do now, when the news from the crypto world just screams colossal profits? - The right thing to do is to use simple methods in the beginning, and gradually go deeper into the process, because only step by step you can master something complex.

What do billionaires don't tell and bloggers don't talk about?

Cryptocurrency trading has become popular due to its high volatility and profit opportunities. However, multiple strategies and indicators often confuse traders. In this article, we will discuss how to use only one indicator that produces five simple signals: ‘Actively Sell’, ‘Sell’, ‘Neutral’, ‘Buy’ and ‘Actively Buy’. Out of these 5 standard points you will use only 2 of them, either sell or buy, you have to agree that it is really simple.

What is this technical indicator?

A person who is just entering the world of cryptocurrency needs the easiest way to start earning, and there is a way. You don't need to look for bloggers, listen to the predictions of leading financiers or pay money for signals and worry that scammers want to make money on you again. You just need to use the official cryptocurrency status indicator.

This is a composite indicator that combines data from several technical tools such as moving averages, RSI, MACD, stochastic and Bollinger Bands. This indicator processes a very large amount of information, and most importantly technical information. Based on this data, it produces a final signal in one of the following categories:

1. Actively sell - a strong sell signal.
2. Sell - moderate sell signal.
3. Neutral - market without a clear direction.
4. Buy - a moderate signal to buy.
5. Actively buy - strong signal to buy.

This indicator is available on many popular platforms, such as TradingView, and you can find and check it yourself, but for convenience we will provide a link - https://www.tradingview.com/symbols/BTCUSD/technicals/. This link leads to the indicator of bitcoin status and its value in comparison with the ordinary dollar, nothing complicated.

Advantages of using a single indicator

1. Easy to analyse. One indicator gives clear recommendations, eliminating the need to understand complex charts.
2. Time saving. The process of analysis becomes faster.
3. Availability. Many platforms provide this tool for free.
4. Stress reduction. Less information - less confusion.

How to use the indicator

1. Asset selection Determine which cryptocurrency you want to work with, e.g. Bitcoin or Ethereum.
2. Indicator installation On a platform such as TradingView, activate an indicator with five signals.
3. Working with signals The indicator analyses the market and gives a signal:
• Actively sell: it is better to close positions or open a short trade.
• Sell: the market is moving downwards, it is worth considering a partial sale.
• Neutral: there is no clear trend, it is recommended to wait.
• Buy: the trend is going up, you can buy in small volumes.
• Active Buy: Strong uptrend, good time to buy aggressively.
4. Risk management - at this stage you must take a responsible approach to decision making, and accurately weigh up whether to buy sell or wait.
5. Signal Monitoring Since the cryptocurrency market is very volatile, check the indicator regularly.

Example of using the indicator

You open the BTC/USDT pair chart on the TradingView platform and see the ‘Actively Buy’ signal. This means that you need to place a buy transaction on the selected trading platform to own crypto coins. After the purchase, you own a part of these funds, then comes the monitoring phase, you watch for changes in the signal. When the signal changes to ‘Neutral’, you take profit. If the signal says you should actively sell, you should do it immediately.

Limitations of the indicator

1. Delayed signals. Due to the use of past data, the indicator may produce signals with a delay.
2. False signals. In periods of high volatility it is possible to get false signals.
3. Ignoring news. The indicator does not take into account fundamental factors such as news or economic events.

Conclusion

Using one indicator to trade cryptocurrencies is an effective way to simplify the analysis process, especially for beginners. However, do not forget the importance of risk management and combining the indicator with other analysis tools. Always approach trading consciously and remember that both large profits and significant losses are possible in the cryptocurrency market.

Please note that this article is not financial advice, and the editorial staff and administration is not responsible for your actions. Do it wisely and your capital may increase.