📊 Indicators that every trader should know
The two most popular indicators in crypto trading are Bollinger Bands and RSI.
Let's briefly analyze 👇
🔵 Bollinger Bands
This is a volatility indicator. It consists of three lines:
average (usually 20 MA)
the upper boundary
the lower boundary
How traders use them:
📈 The price touches the upper line — the market may be overbought
📉 The price touches the lower line — possible overselling
💡 Important: if the price breaks through the upper or lower boundary, it may signal further movement in the same direction.
A useful signal is the contraction of the bands, which often precedes a strong movement.
🟣 RSI (Relative Strength Index)
The indicator shows the strength of the trend on a scale from 0 to 100.
Key zones:
🔴 70+ — overbought
🟢 30- — oversold
Traders look for:
divergences
exit from the overbought/oversold zones.
⚠️ Remember:
neither Bollinger Bands nor RSI provide 100% signals. It’s better to use them together with market analysis.
💬 Do you use these indicators in your trading?