The role of technical indicators in trade with Bitcoin Cash (BCH)

Bitcoin Cash (BCH), Bitcoin Blockchain Fork, has drawn considerable attention in recent years due to faster speeds of transactions and lower costs compared to its predecessor. Consequently, many traders and investors are looking for ways to take advantage of this new cryptocurrency. One of the effective ways to do so is to use technical indicators in trading.

What are the technical indicators?

Technical indicators are graphics and formulas that help traders to analyze the behavior of cryptocurrency and predict future pricing movements. They provide valuable information on the feeling of the market, the power of the trend and the inversion or the potential continuation. In the context of Bitcoin Cash (BCH), technical indicators can be used to identify potential purchase or sale opportunities.

Why are technical indicators useful in BCH trading?

1 and 1 By analyzing the sliding diameters, the relative force index (RSI) and other indicators, traders can better understand the overall orientation of the market.

• Risk management

  : points such as Bollinger bands, Stochastic oscillator and MacD (Divergence of the Convergence of Sliding Diameter) help traders to set price objectives and identify potential areas support or resistance.

• Confirmation trading : By combining several indicators, traders can increase the chances of identifying precise transactions. For example, the use of a strategy of an average sliding diameter with Bollinger belts can confirm the opportunity to buy and at the same time refuse to sell signals from other indicators.

• Risk analysis and rewards : The indicators help traders analyze risk and remuneration ratios and make informed decisions where to enter and sell orders.

Popular technical indicators for BCH trading

1 and 1

• Relative force index (RSI) : RSI measures the extent of changing prices to determine excessive or excessive market conditions.

3
Bollinger Bands : Bollings visualize volatility by drawing the sliding diameter and two upper / lower standard deviations, helping the traders to identify the potential purchase or sale opportunities.

4

• MacD (Divergence of the convergence of the sliding diameter)

  : MacD uses two sliding diameters to calculate the dynamic indicator which can help traders to identify the reversal of trends and to confirm the opportunity to buy / sell.

Example of BCH trading using technical indicators

Let’s say that we exchange Bitcoin Cash (BCH) in a daily graph with the following indicators:

* Slipping average 50 : 20 days me

* Slipping average 200 : MA at 100 days

* The relative power index (RSI) : 14-sur the RSI

* Stochastic oscillator (14-3) : Stochastic value of 14 attached compared to the value with 3 nonsense

Using these indicators, we can identify potential purchase opportunities when the price goes above the lower Bollinger strip and reaches a top above the Bollinger upper band. Meanwhile, the opportunities are sold when the price is submerged under the Bollinger Bank and does not reach the upper group of Bollinger.

Conclusion

Technical indicators are an effective tool for merchants for market trends analysis, identifying potential purchase or sale opportunities, and informed decision -making on orientation and sale of orders. By combining several indicators in the strategy, traders can increase their chances of success in Bitcoin Cash (BCH) and other cryptocurrencies.

BINANCE COIN CRYPTOCURRENCY