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Getting into crypto trading, the easiest trap to fall into is not understanding the market行情. Actually, it doesn't have to be so complicated. Master three basic indicators, and you'll be able to grasp the market rhythm.
**Moving Averages (MA): The Direction Indicator**
Simply put, it’s the average of recent closing prices, plotted as a line. If the 5-day and 10-day short-term moving averages are trending upward, it generally indicates a market uptrend; if they turn downward, be cautious.
How to use it? When the short-term MA crosses above the long-term MA from below, it’s called a golden cross, a clear bullish signal. Conversely, if the short-term MA crosses below the long-term MA, it’s a death cross, signaling a potential pullback. Many traders rely on this signal to decide when to be optimistic about the market.
**MACD: The Acceleration of Price Movements**
The most straightforward way to interpret this indicator is by looking at the red and green bars. Longer red bars indicate increasing upward momentum; longer green bars suggest strengthening downward pressure.
Additionally, watch for the crossover of the white line and the yellow line. When the white line crosses above the yellow line, it’s a golden cross (bullish); crossing below is a death cross (bearish). An often overlooked detail is that when the bars suddenly shrink, it usually hints that a trend reversal might be imminent. At such times, avoid blindly chasing the highs or selling at the lows.
**RSI: The Overbought/Oversold Warning Light**
This indicator fluctuates between 0 and 100. Above 70 indicates overbought conditions, often leading to a price correction; below 30 indicates oversold conditions, usually followed by a rebound.
For beginners, one key rule: don’t rush to buy when RSI is above 70, and don’t rush to sell when it’s below 30. Patience can save you a lot of money.
**Final note: These indicators are not fortune-telling tools; using all three together is more reliable.** When unsure about the market, it’s helpful to look at the performance of major cryptocurrencies like Bitcoin, Ethereum, and SOL, which often reflect the overall market sentiment. The key is not to go all-in from the start, but to leave room for adjustments.