Technical trading can be somewhat daunting for newer cryptocurrency investors. And, to be honest, there is a bit of a learning curve. Yet there are also some widely-used indicators that are both highly useful and extremely simple to understand.
And perhaps no indicator better fits this description than the simple moving average.
If you’re a relative newcomer to cryptocurrency trading, it’s natural to feel a bit intimidated by the thought of using technical analysis. At first glance, technical trading is a discipline that features a lot of unusual jargon and some fairly advanced-sounding concepts.
Yet the truth is that almost anyone can become an effective technical trader — you just need to build a proper foundation by learning the basics. Once that foundation is in place, even the more sophisticated analytical indicators will become fairly simple to grasp, allowing you to trade with a powerful new set of tools at your disposal.
For newer cryptocurrency traders, learning how to successfully time market entries and exits is a fundamental challenge. It’s also often a difficult one, given the considerable volatility of the market.
Technical trading tools help level the playing field, giving traders access to indicators that can help identify developing market trends and opportunities. One of the most popular and useful of these indicators are “Bollinger Bands.”
To help you learn more about technical trading strategy, let’s take a closer look at the ideas behind Bollinger Bands, and how the bands are used in cryptocurrency trading. This article is merely meant to serve as a helpful resource, not advice.