I'm not an expert, but here are some tips that can help you follow a safer path in the world of cryptocurrencies:
Graphic indicators:
RSI
What it is: A scale from 0 to 100 that measures the strength of a price movement.
How to interpret it:
Above 70: May indicate that the asset is overbought, that is, highly valued, and may correct (fall).
Below 30: May indicate that it is oversold, that is, undervalued, with a chance of rising.
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MACD
What it is: An indicator that uses two lines (fast and slow) to measure the strength and direction of a trend.
How to interpret it:
When the fast line crosses the slow line upwards, it is a buy signal.
When it crosses downwards, it is a sell signal.
A bar chart (histogram) helps identify the increase or decrease in the strength of the movement.
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EMA
What it is: An average of the price, giving more weight to the last periods.
How to interpret it:
When the price is above the EMA, it is a sign of bullish strength.
When it is below the EMA, it can indicate a bearish trend.
Crosses of averages (e.g., 9- and 21-period EMAs) can also indicate entry or exit points.
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Bollinger Bands
What it is: An indicator formed by three lines: the moving average in the center, with two lines that show volatility (distance between prices).
How to interpret it:
If the price touches the upper line, it can indicate overbought.
If it touches the lower line, it can indicate oversold.
Narrow bands show low volatility, while wide bands indicate higher volatility.
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Uptrend
What it is: When prices consistently show higher highs and higher lows.
How to identify:
Trend lines pointing upwards.
Price remains above important moving averages.
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Downtrend
What it is: When prices make lower highs and lower lows.
How to identify it:
Trend lines pointing downwards.
Price remains below important moving averages.
⚠️ DO YOUR OWN RESEARCH⚠️
Let's go up ☝🏻🫂🚀
