Are you getting started with your Ethereum trading practice? If yes, chances are that you are confused about how and where to get started and even confused about the mistakes that you are making with the eth usdt trading.
Your journey with ethusdt trading requires a lot of planning and proper execution. With its ever-fluctuating price, capitalizing on opportunities requires a keen understanding of technical analysis and strategic use of indicators.
We will take a closer look at the top five indicators that showcase that it might be time for you to improve your Ethereum trading practices.
Relative strength index (RSI)
One of the very first signs that you might need to improve your Ethereum trading is focusing on the relative strength index. The RSI is a momentum oscillator that gauges whether Ethereum is overbought (potentially headed for a decline) or oversold (ripe for a potential upswing). In short, it enables you to assess the stability of the crypto asset that you are planning to invest in.
If the RSI is over 70, it indicates an overbought condition. However, if the RSI is under 30, it indicates an oversold condition. You don’t want to invest in either of these conditions concerning the eth usdt futures.
Moving Average Convergence Divergence (MACD)
Another factor that indicates that you need to focus on adjusting the crypto futures trading is the MACD. It is a vital element that is often overlooked by many traders, which often results in downfall. The MACD is a trend-following indicator that uses two moving averages (MA) and a MACD line to identify potential trend reversals.
There are three elements that you have to focus on including:
- MACD line
- Signal line
- Divergence
If you want to attain better returns on your eth or bitcoin futures trading, it makes sense for you to ensure that you are focusing on the desired elements mentioned.
Bollinger Bands
Your experience with ETH and BTCC trading heavily relies on Bollinger Bands. Bollinger Bands consist of three lines: a simple moving average (SMA) in upper, lower, and centre band at a set standard deviation above and below the SMA. When you take a look at the width of the band, it indicates the market’s volatility concerning the market trends.
If you notice the price is touching the upper band, it indicates a situation of overbought asset, which is likely the last option that you want to indulge in. A right crypto trading platform can help you with this.
Trading volume
Another aspect that indicates that your bitcoin futures or Ethereum futures should be adjusted is the trading volume. Volume, simply put, refers to the amount of Ethereum traded within a specific timeframe. You should always analyze the trading volume concerning the price swings and fluctuations.
You want a positive rise in both the trading volume and the price of the bitcoin trading that you are indulging in. This should be enough to bring you the benefit of the doubt that you have been looking for.
Stochastic Oscillator (%K and %D)
The last element that you need to assess is the Stochastic Oscillator. It indicates the connection between the closing price of Ethereum and the price range over a specific period. If you are wondering about its significance, it allows you to assess overbought and oversold conditions.
If the %K and %D are over 80, it indicates an overbought situation. If it is below 20, it indicates an oversold situation.
Your experience with ETH and BTCC trading can be optimized when you have the right measures in place. Keeping an eye out on these indicators should help you best optimize your trading experience in no time at all.
