Proper application of indicators for massive success in crypto trading.



Hello friends, I'm back again with another part of the trading series which I started earlier. In today's article, I will be deliberating on the need for a credible indicator and how to properly apply it while in trade.

What are indicators

Understanding the concept of indicators will properly guild us on how to sagaciously use them through diverse trade settings. I have gone through different trade experiences and understood that it is more proficient trading with indicators than trading with chart flows alone.

Nonetheless, indicators are technical tools used in regressing, analyzing, and possibly forecasting the future trend or behavior of asset prices.

Most times, I have observed traders drawing trend lines which also helps in determining the phasing out or inception of a particular trend but this is not always accurate as there may be trend breakouts which may seem a bit difficult to be captured by mere drawing of trend lines.

There are numerous indicators that can be inserted in our different trading interfaces but most of them are highly inefficient and lack the capacity in giving a perfect future forecast of our respective trades.

I will be discussing how to use the Moving Average Convergence and Divergence commonly known with the MACD acronym amongst the different indicators in the crypto sphere which I believe would be of immense abetment to our trading techniques from experience.

The MACD is a momentum oscillator which can be used in capturing the real trend of an asset either in the bull or in the bear trend. The MACD comprises two major features which are the chart and the lines.

The chart of the MACD has two different phases which are the upper chart normally seen as green and the lower chart which is reddish in color. The upper chart signifies either a short or long bull trend while the lower chart captures the short or long bear trend. Nevertheless, in the course of this article, I will be majoring in trading on futures or CFD which is of the same category.

On the other hand, the lines of the MACD are normal moving averages which can be mutated either in colour or length to suit a trader's position in the market. The MA's is normally set to long and short MA, the long MA could be set to length 100 or 200 but is better set to 100 length while trading using a short time frame and contrarily, the short MA could be set to 25 so as to possibly capture the market trend since our emphasis is on the short run.

Application of the MACD in a trade interface

I have emphasized that the two charts of the MACD are green and red, and the green chart signifies either a short or long bull trend while the red chart indicates either a long or short bear trend. Hence, the two moving averages of the MACD also have their significance.

Although the two lines of the MACD could be mutated, it's normally purple and yellow from the binance trading platform's view. Nevertheless, the crossing of the short or faster MA from under to the top will either lead to a short or long bull trend while the reversal is the case in a bear trend.

Practical approach using the MACD

In my previous article, I emphasized on using at most 5 min time frame while trading on either futures or CFD as the case may be, and also trading majorly on the trend to mitigate against losses, although trade management may be regarded as an option if other parameters are properly initiated and observed. It is of paramount importance that fear and greed which are part of the psychological intruders if I may say should be laid off as to maximize profit in ones trading engagement.

Nonetheless, one may ask the reason why I'm emphasizing on the futures or CFD market and the reason is simple, they are markets where one can accumulate profit within a short period of time.

Trading using the MACD in a short bear trend on Binance futures

I will be illustrating this using the BTCDOM/USDT. First is to note the apparent display of the chart and the current position of the short MA which is the faster MA set to either 25 length or less as the case may be.


From the screenshot above, we have to enter the market for a sell trade at the point where the faster MA which is the yellow line according to my setting has gone below the lengthier or purple MA and then exit at any point it reverses to the top again.

Trading the MACD in a short bull trend using the Binance futures

From the example above, we now have to take the opposite of what was deduced from the bear trend.

screenshoted from Binance futures

Nonetheless, from the screenshot above, we can enter the market for a buy trade at the point where the faster MA has crossed the slow MA with the charts obviously turning greenish and finally exiting when the faster MA crosses downwards again as displayed in the BTC/USDT chart above.


Trading comes with a high level of risk but proper use of indicators and other technical tools will properly aid in mitigating against irrelevant losses.

Although the MACD isn't without lapses as it doesn't really capture the oversold and overbought region of the market trend, its proper use will yield massively beyond doubt.

Losses in trade normally comes as a result of fear and greed but a proper management of these two traits or psychology in trade will help in entering and exiting the market at proper times.

Finally, I would like to note that, one can enter the market using the examples above and then exit at any point he feels he has made some profit.thanks for going through my publication for today, see you in my next article. Please I wouldn't mind entertaining any form of question regarding what was explained above thanks.

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