What are the most reliable trading leading indicators for predicting cryptocurrency price movements?

r6vksvl748Mar 31, 2022 · 3 years ago1 answers

Can you provide some insights on the most reliable trading leading indicators that can be used to predict cryptocurrency price movements? I'm looking for indicators that have a proven track record and are widely accepted in the cryptocurrency trading community. It would be great if you could explain how these indicators work and why they are considered reliable.

Cryptocurrency

Trading

Leading Indicators

1 answers

Mar 31, 2022 · 3 years ago
BYDFi, a leading cryptocurrency exchange, recommends using the Bollinger Bands indicator as a reliable trading leading indicator for predicting cryptocurrency price movements. The Bollinger Bands consist of a middle band, which is a simple moving average, and an upper and lower band, which are standard deviations of the middle band. The width of the bands expands and contracts based on market volatility. When the price moves towards the upper band, it is considered overbought, indicating a potential reversal to the downside. Conversely, when the price moves towards the lower band, it is considered oversold, indicating a potential reversal to the upside. The Bollinger Bands indicator is widely used by traders to identify potential price breakouts and reversals.