TabTrader’s Top 5 Crypto Trading Indicators

Ever wondered what the most popular crypto trading indicators are on the TabTrader app? TabTrader has 30 to choose from, but when it comes to tried and tested favorites, users prefer to keep it simple.

This post offers an introduction into the top five indicators available on TabTrader. Continue reading to discover what crypto traders are using to get ahead in the crypto markets in 2022.

Interested in giving them a go? All indicators can be accessed by selecting the relevant option from the Indicators tab on the chart.

Exponential Moving Average (EMA)

Sound familiar? The exponential moving average (EMA) is a type of moving average which is everywhere on crypto price charts.

Like a simple moving average (SMA), the EMA plots the average price of an asset over a specific period. The key difference between the two, however, is that the EMA gives more weight to recent data points, whereas the SMA gives equal importance to all data points in the range.

What’s the main benefit of using EMAs instead of SMAs? They respond more quickly to sudden price changes thanks to the increased influence of recent data points. In a trending market, EMAs can be more accurate at giving signs of whether a particular price move is valid. 

Relative Strength Index (RSI)

Relative strength index (RSI) is what traders use to work out how overbought or oversold an asset is at a particular price.

A common term in crypto circles, RSI helps understand trends in volatile crypto markets in which a price point can reoccur under very different circumstances.

A scale from 0-100 allows traders to gain valuable insight into price trends both up and down. 

Bollinger Bands

No volatility indicator is better known than the Bollinger Bands, a household name among traders in use on traditional markets since the 1980s.

Bollinger Bands use standard deviation to contextualize an asset’s volatility and provide clues as to possible local tops and bottoms. From this, traders can get a better idea of where to enter or exit a particular market.

Want to know more about Bollinger Bands? Read the dedicated guide at the TabTrader Academy here. 

Moving average convergence divergence (MACD)

It may be a bit of a mouthful, but moving average convergence divergence (MACD) is a key trend momentum metric that has become essential for many a crypto trader.

It uses two EMAs (discussed above) to create a trendline called the “signal line” which in turn gives buy and sell signals and information about the strength of a price trend. 

Trading Volume

There’s more than meets the eye when it comes to good old volume data on a crypto price chart.

Volume can be used to assess the significance of a given market movement. This information is also very important when it comes to using other indicators, for example Bollinger Bands (see above). 

Discover the most popular trading indicators on the TabTrader app. Need help? Check out the TabTrader Academy for tips on how to get started.