Chart Indicators

Hello.

Im new in forum, and I started to learn about trading.

Im interested what is best indicators to use to trade crypto.

Im using:
EMA 21, 50
RSI 14
MACD12,24
Bollinger Bands 20

This is on 15 min chart. Do you think this can ge good, and how you will use this indicators, or you will use something different?

Im hope this is good topic for this tread.

Welcome back, Kenny.

Why do you want to trade crypto?

Why do you want to use indicators?

Either it has an edge or it doesn’t. It’s factual. Opinions have no value, really. You need to find out, first, whether or not it has an edge.

Only extensive backtesting can tell you that, not anyone else’s opinion.

My guess is that (like almost any multi-indicator combination) it will have no edge at all, and not be profitable.

But in any case, and even if I’m wrong, it isn’t a trading system: it’s just an entry-method. :slightly_smiling_face:

2 Likes

I would focus on learning market structure and then use market structure as the foundation for the strategy you develop. Indicators can be used for confluence to support what market structure is telling you, such as using RSI to check for divergence.

Learning market structure, beyond identifying an uptrend or downtrend, isn’t as easy as loading up indicators but I think you will get more mileage out of it and it’s useful for a wider variety of instruments.

Good Luck!

2 Likes

Hi Kenny - no: it certainly won’t be.

Theo (who posted above) is being terribly polite and tactful when he says his “guess” is that it’s no good. He knows perfectly well that it’s no good, and so do any other experienced traders reading your post. Not many will reply, probably, because most people don’t want to be “the bearer of bad news”.

And because there are a few people here who have the habit of accusing anyone who says anything “negative” of “being negative and unhelpful”. And that inhibits many people from posting, when the only honest answer to something is “no”.

The big issue here isn’t actually whether what you’re asking about is good or bad.

It’s the mistaken underlying assumptions you’ve originally made, that made it possible for such a question to arise in the first place.

You need to start by correcting those. Which actually isn’t easy (for anyone!) to do.

The big point, here, is that there isn’t going to be a combination of any 5 (or 4 or 3 or 2 or 6 or 7 or 8) indicators which you can put on a chart and follow, which will magically enable you to trade crypto profitably.

That just isn’t how trading works. At all.

So at the moment, you’re going in the wrong direction, I’m sorry to say.

Please forgive me if I sound critical or even impolite. I’m trying not to, but to have any realistic chance of trading profitably, you need to hear and understand clearly that a fundamental re-appraisal of what you’re doing, from “square one” is required, here: not an answer to a question about some specific combination of indicators.

The proportion of people who take up trading, and ever become steadily profitable, is (to put it mildly) on the low side.

Three of the major issues that keep it very much on the low side are (a) people trying to trade crypto, (b) people trying to use indicators with the mistaken belief that they’re going to have some “predictive” powers, and (c) people not starting from a clear understanding of the difference between a trading system and an entry-method (as Theo also mentioned).

I respectfully suggest that you start here (and with the forex course, specifically, not the crypto one) -

3 Likes

Thank you for honest answer. This is only how I can improve my self.

I will start reading this articles now, and I hope I can learn something

Don’t know why people jump on indicators if they don’t know how to use them.

SnR level is the backbone of trading. If you know that, you can master any indicator.

have you ever tried rsi

Im tried, why do you ask?