Traders just entering the market are often overwhelmed by various indicators. In fact, it doesn't have to be so complicated—mastering 5 indicators can cover most scenarios.
**Simple Moving Average (SMA)** is the easiest to get started with. It connects the average prices over the past few days, helping you see the overall direction of the price. Beginners can start with the 5-day or 10-day SMA, which is especially suitable for capturing short-term fluctuations.
**Relative Strength Index (RSI)** is a tool to gauge market momentum. When RSI exceeds 70, it indicates strong buying pressure and potential for a pullback; below 30 suggests the opposite, possibly indicating overselling. Using this indicator can help you avoid rushing in during extreme conditions.
**Fibonacci Retracement** sounds mysterious, but it’s actually based on a mathematical pattern to identify support and resistance levels. When prices bounce back to these key levels, reversals often occur, making them worth paying close attention to.
**MACD** is the most popular. It tracks the relationship between two moving averages to determine trend direction. When the fast line crosses the slow line, it’s usually a signal of a shift in market sentiment—this can be a cue to buy or sell.
**Volume Indicator** reflects participation. High trading volume indicates strong interest, making price movements more convincing; conversely, low volume during price changes may be less reliable.
Using these five indicators together can help you understand the market from multiple angles. But remember, indicators are just references—they’re not 100% accurate. Combining them with risk management and your market intuition is the key to consistent profits.
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GateUser-e87b21ee
· 01-11 07:35
Honestly, I've been using MACD for so long but I still often get fooled by false signals. It's more straightforward to just look at the trading volume...
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APY_Chaser
· 01-11 05:17
Well said, but I still think most beginners can't really use all of this. I myself am stubbornly focused on SMA and trading volume, and I've already recouped my investment. All those flashy things are purely self-comforting.
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AirdropHarvester
· 01-11 02:52
I am a seasoned airdrop hunter, but to be honest, I'm already tired of this set of indicator combinations. The RSI and MACD setup is really useless when facing black swan events; it's better to trust your intuition.
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MerkleDreamer
· 01-10 16:57
That's correct, but I was fooled by MACD from the beginning... Now I rely more on candlestick charts and trading volume, and I make more stable profits.
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GweiTooHigh
· 01-08 09:56
Honestly, I've been using RSI and MACD for three years, but I still get trapped often. Indicators are never reliable.
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Ser_APY_2000
· 01-08 09:54
That's right, beginners are most likely to fall into traps when there are too many indicators, five is enough.
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The RSI is the one I use most often. When it’s above 70, you really need to be cautious, or you might get crushed.
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I've tried MACD line crossing a few times. The signals are quite accurate, but sometimes they lag.
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Trading volume is the easiest to overlook. A rise with low volume is always a trap, this is very critical.
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The Fibonacci mysterious hammer is just about finding psychological levels, but it’s indeed useful.
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That’s what they say, but actually making money depends on mindset and risk control. Indicators are just aids.
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I used to pile on a lot of indicators, but the more I looked, the more confused I got. Simplifying actually made it clearer.
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Using SMA with RSI can basically eliminate 80% of rookie mistakes.
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Fake volume signals are the most terrifying. Many people get liquidated right here.
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PumpDoctrine
· 01-08 09:53
That's right, these five are actually enough to master. Don't be fooled by those flashy indicators.
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StakeHouseDirector
· 01-08 09:52
You're right, but the real key to making money still depends on mindset and stop-loss strategies.
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I've always used SMA, but sometimes it tricks you, especially during sideways trading, which is super annoying.
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I'm tired of the RSI approach. Just because it's over 70, does that mean you must buy the dip? I've seen coins break 80 and keep surging.
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Fibonacci? Honestly, it's just a psychological level. The more people believe in it, the more effective it is; the fewer believers, the more of a joke it becomes.
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MACD is my lifesaver. I've used it for so long and still find it the most reliable; everything else is just supplementary.
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Trading volume is where the real skill lies. It can reveal the main force's moves, but unfortunately, most people overlook it.
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Five indicators? My big brother now only looks at candlesticks and Bitcoin's movement. He turns off the rest and ends up making more money.
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For beginners, it's better not to worry about so many indicators. First, learn how to lose money, then you'll know how to make money.
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That last sentence is the core: all indicators are just references; the key is to have the courage.
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ser_aped.eth
· 01-08 09:48
To be honest, I've been using this combination for a long time. SMA paired with MACD is indeed a powerful combo. However, my experience is that beginners are most likely to make mistakes not with indicator selection, but by jumping in when RSI drops below 30 and then continuing to buy in. Risk management is truly more important than technical indicators.
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GasFeeDodger
· 01-08 09:44
To be honest, I've been using these five indicators for two years. The most practical ones are still SMA and volume; the others are just supplementary. Don't overthink it.
Traders just entering the market are often overwhelmed by various indicators. In fact, it doesn't have to be so complicated—mastering 5 indicators can cover most scenarios.
**Simple Moving Average (SMA)** is the easiest to get started with. It connects the average prices over the past few days, helping you see the overall direction of the price. Beginners can start with the 5-day or 10-day SMA, which is especially suitable for capturing short-term fluctuations.
**Relative Strength Index (RSI)** is a tool to gauge market momentum. When RSI exceeds 70, it indicates strong buying pressure and potential for a pullback; below 30 suggests the opposite, possibly indicating overselling. Using this indicator can help you avoid rushing in during extreme conditions.
**Fibonacci Retracement** sounds mysterious, but it’s actually based on a mathematical pattern to identify support and resistance levels. When prices bounce back to these key levels, reversals often occur, making them worth paying close attention to.
**MACD** is the most popular. It tracks the relationship between two moving averages to determine trend direction. When the fast line crosses the slow line, it’s usually a signal of a shift in market sentiment—this can be a cue to buy or sell.
**Volume Indicator** reflects participation. High trading volume indicates strong interest, making price movements more convincing; conversely, low volume during price changes may be less reliable.
Using these five indicators together can help you understand the market from multiple angles. But remember, indicators are just references—they’re not 100% accurate. Combining them with risk management and your market intuition is the key to consistent profits.