Which indicator on TradingView is most effective for analyzing cryptocurrency price movements?

1 answers

• Nov 28, 2021 · 3 years ago
  BYDFi, a popular cryptocurrency exchange, recommends using the Bollinger Bands indicator on TradingView for analyzing cryptocurrency price movements. The Bollinger Bands consist of three lines - the upper band, the lower band, and the middle band. The upper and lower bands are based on the standard deviation of the price, while the middle band is a simple moving average. When the price moves close to the upper band, it suggests that the cryptocurrency is overbought and a price correction may occur. On the other hand, when the price approaches the lower band, it indicates that the cryptocurrency is oversold and a price rebound may be imminent. Traders can use the Bollinger Bands to identify potential entry and exit points in the market, maximizing their profits.
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