Today I will explain a problem that exists in the indicators in terms of my own research and synthesis. If you know anything or see anything, please contribute. I also hope to learn from you!
Technical indicators are just for reference, the probability of winning or losing will determine whether you trade successfully or not. So how to improve the quality we are consulting.
The problem here is that these indicators were created a long time ago, they are still applicable now but they are no longer suitable for crypto market conditions, a market that runs 24/7 instead of 12 or 26 days..
Second, some indicators also tend to be more investor-oriented, not speculative, meaning they take average data and wait for intersections, touches... to determine a new trend of the stock (it was originally born in the US and serves the US stock market), those trends are often more sustainable and longer lasting, they do not fluctuate like crypto.
Most indicators are based on the average factor, which is SMA or more sensitive is EMA... They are still late, moreover, RSI is more sensitive but also does not have much information at the entry point, because if you pay attention to RSI divergence, ok it diverges but before the price actually changes direction, do you know how many times it has diverged,....
So I will need to understand them, adjust some points in the indicators to be able to use them temporarily, combine them together for the cryptocurrency market and for the form of scalp future trading. It will make it more sensitive but have to find a way to reduce noise, the purpose is to find the entry point and that entry point is more quality, difficult right 😂.
One more thing I want to tell you is do you know any information on the chart that is absolutely infallible, that is volume, order book. As for price and candlesticks, everyone knows but there is not much basis because they like to go up and down (of course, you can still refer to it).
Let me tell you guys that in the near future (a few months, half a year🤗), I will code an indicator with the core Lim delta(x)/delta (t) and n other formulas so we can see more clearly the fluctuations to find entry points and I am also researching to code some information from the order book, currently not coded and not tested.
If you have any suggestions, please give your valuable opinions. First of all, I trade by myself, I don't have any signal groups, no coins, I don't cheat anything, I just share and hope to learn!
