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Indicators for Cryptocurrency Trading

If you are new to cryptocurrency trading, you are probably looking for useful tools to help you analyze trends and developments during cryptocurrency trading. As you may guess, there are many technical indicators traders use.

The purpose of a technical analysis is to derive a future trend from price patterns. Different indicators show signs, when it is a good idea to buy or sell a given asset. 

Today, we are looking at some of the most popular indicators for crypto trading.

What is important for crypto traders is to find potential future developments in the market, so they can select the right strategy to achieve their goals.

Price trends

Using the word “development”, we mean trends, and in technical jargon, indicators showing trends are also known as “trend indicators”. 

In the crypto market, price trends are a combination of three different types of movement - the price going up, the price going down, or the price going sideways. The last one means that it is in a stagnant phase.


For crypto traders, it is extremely important to find good trading opportunities, and identify the trends as soon as possible. This is possible through a technical analysis, which helps traders understand the future trends from price patterns from the recent past.

Technical analysis helps traders make informed decisions, so they know when it is a good idea to enter or to exit the market. Of course, there are some indicators that show clear signals and help traders see a better picture of the market.

Candlestick patterns

Candlesticks are what constitutes the foundation of a trading chars. A single candle is a representative of a day of trading, while a candlestick pattern represents a month or more of trading.

In their basics, candlestick patterns show continuation or reversals of price trends. Anyway, it is important to say that you should not rely only on candlestick patterns, when creating your trading strategy. Of course, it is always useful to look at technical indicators to make sure that you have seen a balanced picture of the price movements.

Simple moving average

As the name suggests, SMA is a line across the candlesticks of the trading chart. The closing prices of a given period of time are added up and divided by their number.

The average line that comes out as a result of this calculation ensures that the price trend is smoothed, so that traders can have a visual impression of upwards, downwards, and sideways trends.

Exponential moving average

With SMA the oldest price is dropped when a new price is added, the existing closing price data flows into the calculation of the exponential moving average. Actually, EMA is commonly used among automated trading systems.

Moving average convergence divergence

More advanced cryptocurrency traders use moving averages to generate trading signals through moving average crossovers or moving average convergence divergence. This happens by subtracting the 26-period EMA from the 12 period EMA, and the generated set of values is called the “fast line”, and a new 9-day line, also known as the “slow line” is created from this.

Those two lines are plotted on the chart, and when the fast line crosses the slow line from bottom to top, a buy signal is indicated, and a sell signal indicates when the fast line crosses the slow from top to bottom.


Oscillators are another important tool, used by traders for comparing the range between highs and lows. There are different types of oscillators, including:

  • Stochastic oscillator

  • Relative Strength Index

  • Commodity channel Index

It is important to say that cryptocurrency trading is not as simple as it sounds. The crypto market is highly volatile, and there is no guarantee for a good profit. However, if you follow some good practices and have a good knowledge about crypto trading indicators, it is possible to achieve some good results. is an automated crypto arbitrage platform. All you need to do is choose a subscription plan, and we will do the work for you.