Financial Technical Analysis Crypto Narrative Chapter 4 Indicators

Indicator is literally an indicator to measure the current level or status of a certain thing for example gauge meter showing moving vehicle speed, thermometer showing temperature, mirrors showing our image, and even historical trading data showing previous prices and volumes. Technical indicators in financial technical analysis are heuristic or mathematical calculations of historical trading data which helps traders in making better trading decision by better predicting the future movement of the market. While the purpose are to help traders but technical indicators are still just tools which depends on how the traders use the tools. No matter how great the tool is, it is useless if the trader cannot utilize it well. For example using moving average is slightly different in cryptocurrency market because it is open 24 hours and 7 days (24/7) while traditional market opens only 8 hours and 5 days (8/5). Generally, technical indicator is divided into overlays and oscillators.

Overlays

The word overlays really are technical indicators that are shown on the price feed or over the layer of the price. For beginners, it is not a good idea…