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Best Crypto Trading Indicators You Should Be Using

by Kamil S


Trading indicators are popular tools and it’s easy to see why. They are essential for both long and short term trading. If you are looking to improve your skills, this is a good place to start. Check out our recommendations for the best crypto trading indicators to use!

Introduction to Best Crypto Trading Indicators

If you are just starting out with trading, it’s useful to take a step back. Understanding the essence and aim of trading helps you succeed. So, what is trading? Trading means buying and selling assets with the aim of making a profit. Institutional trading looks at buying and selling stock, shares and currencies. When it comes to trading cryptocurrencies, which involves buying and selling digital assets, you might want to consider strategies like swing trading to maximize your profits.

Swing Trading vs Day Trading

Swing trading and day trading cryptocurrency are popular among traders. Both of these disciplines are fast paced. For instance, day traders hold assets for a few seconds to a few hours. So, if an asset trades within one day, it qualifies as day trading. Logical, right? Yet, swing trading is slightly more relaxed. Swing trading strategies have a slower pace. This gives traders more time to understand the process. This also means more opportunities for research. Swing trading will prepare you for a fast paced trading environment. So, you can first spend some time swing trading. Then you can move on to day trading.

What Are Trading Indicators?

Trading indicators are tools for maximizing trading gains. They help traders figure out the price direction of an asset. Indicators are helpful in both long and short term price analysis. So, you can look at trading indicators as calculations. They signal the events that are bound to happen in the trading market. 

Trading indicators are helpful in various types of trading. For instance, stock, currency, securities or commodities. Since the industries have different characteristics, they need different indicators. Therefore, the best indicators for crypto trading might not work for other areas. 

Check out our guide on Trading Indicators to learn more about the topic!

List of the Best Crypto Trading Indicators

Now that you are familiar with the definitions, let’s get more practical! We picked out five trading indicators that will help you improve your trades.

Moving Average Convergence Divergence 

Let’s start from the Moving Average Convergence Divergence. Conveniently enough, it is also known as MACD. As the name implies, it belongs to the moving averages category. It shows the difference between two shifting averages. These are the current MACD and the Exponential Moving Average. Therefore, it helps to identify when and where new trends will happen. Due to this, it is popular among day traders.

Relative Strength Index

Relative Strength Index, also known as RSI, is a popular indicator among traders. It quantifies the gains and losses of an asset over a fixed period of time. The relative strength index is quite universal. It is customizable for both beginners and pro traders. 

The RSI is great for swing trading. This is because it signals when a market entry should happen. Also, it is efficient for investigating short signals. So, traders can tell if an asset is overbought or oversold.

Fibonacci Retracement

This is a good fit for traders with a spark for analysis. The Fibonacci Retracement is one of the more statistical indicators. It connects to the Fibonacci Sequence. The sequence established a “golden ratio” of 62%. Therefore, creating the 62/38 pattern. To put it simply, a group of people will usually decide between them in a 62/38 percent pattern. 

The same goes for trading. The Fibonacci Retracement takes two extremes (such as peak and trough). Then, it divides the vertical distance by the key Fibonacci ratios. So, traders can detect support and resistance levels. This indicator is a great fit for day trading.


This sounds simple, right? Well, volume is a basic but an important trading indicator. It is often overlooked in the list of best crypto trading indicators. However, it’s a handy tool for trading. Especially, when targeting beginner traders.

Volume patterns help traders understand the strengths behind price movements. For example, rising markets with increasing volume are usually strong. But when volumes decrease, trends are also facing a downturn. This applies for both day and swing trading.

Ichimoku Clouds

This indicator is a combination of five lines. Each line illustrates averages over time periods. The overall length is up to the trader to decide. When the lines cross, the area between them is shaded. This is where the indicator gets its interesting name from. The crossed lines form a “cloud”.

So, when the price is above the cloud, the trend is increasing. On the other hand, a price below the cloud shows a low trend. There’s also a bonus indicator to this. Namely, you can tell that a trend is strong when the cloud itself is moving in the direction of the price.

 Now that you know all about the best crypto trading indicators, it’s time for some practice! Start improving your trading skills by heading over to the CoinMetro crypto exchange! In case you have any questions, our support team is here to help 24/7.



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