The role of technical indicators in Bitcoin Cash (BCH)

Bitcoin Cash (BCh), Bitcoin Blockchain Fork, has gained significant attention in recent years due to faster transactions and lower fees compared to its predecessor. As a result, many buyers and investors are looking for ways to benefit from this new cryptocurrency. One of the effective ways to do this is to use technical indicators in trade.

What are technical indicators?

Technical indicators are charts and formulas that help traders analyze cryptocurrency behavior and provide for future price movements. They provide valuable information on market moods, trend strength and potential reversal or continuation. In the context of Bitcoin Cash (BCH), technical indicators can be used to identify potential purchase or sale.

Why are technical indicators useful in BCH trade?

• Analyzing sliding diameters, a relative force indicator (RSI) and other indicators, traders can better understand the general direction of the market.

• Risk management : points such as Bollinger bands, Stochasty and MacD oscillator (discrepancy of the convergence of slip diameter) help traders set their goals and determine potential areas of support or resistance.

• Confirmation trade : by combining many indicators, traders can increase the chances of identifying precise transactions. For example, the use of a medium diameter strategy with Bollinger belts can confirm the possibility of purchase, while refusing to sell signals from other indicators.

• Risk and prize analysis

  : indicators help traders in analyzing risk and salary indicators, as well as making informed decisions regarding the introduction and sale of orders.

Popular technical indicators for trading bch

1.

• Relative force indicator (RSI) : RSI measures the range of price changes to determine excessive or excessive market conditions.

3
Bollinger teams

: Bollingers visualize variability by drawing a sliding diameter and two standard deviations above/ below, helping traders identifying potential purchase or sale opportunities.

4

• MacD (discrepancy of the convergence of the sliding diameter) : MacD uses two sliding diameters to calculate the dynamic indicator that can help traders identify the reversal of trends and confirm the possibility of purchase/sales.

Example of BCH trade using technical indicators

Let’s say that we trade Bitcoin Cash (BCH) on a daily chart with the following indicators:

* average average 50 : 20-day

* average average 200 : 100-day

* Relative power indicator (RSI) : 14-over RSI

* STOCHASKA (14-3) oscillator : 14-all stochastic value compared to 3-Better

By using these indicators, we can identify potential purchasing options, because the price passes above the lower Bollinger band and reaches high above the upper Bollinger band. Meanwhile, the possibilities are sold when the price is immersed at Bollinger Bank and does not reach the upper team Bollinger.

Application

Technical indicators are an effective tool for traders for analyzing market trends, identifying potential purchasing or sales possibilities, and making informed decisions regarding buying and selling orders. By combining several indicators with a strategy, traders can increase their chances of success in Bitcoin (BCH) and other cryptocurrencies.