How to use multiple "technical tools" (i.e., technical indicators) together to judge buy and sell opportunities? The core is "indicator resonance"—simply put, when multiple tools give the same signal, the trade becomes more reliable and reduces errors. First, let's clarify the basics:



Overbought: After a period of price increase, too many buyers push the price artificially high, which may lead to a correction (drop);

Oversold: After a period of price decline, too many sellers push the price low, which may lead to a rebound (rise);

Resonance: For example, common indicators like RSI, KDJ, MACD, if they all signal "buy" or "sell" simultaneously, the signal is more accurate and more reliable than relying on a single indicator.

Next, let's introduce how to use some common "technical tools":

RSI (Relative Strength Index): Values above 70 indicate overbought, below 20 indicate oversold. Comparing values across different timeframes (e.g., 15 minutes, 4 hours, 1 day) can reveal short-term fluctuations versus long-term trends;

KDJ (Stochastic Indicator): Crossovers of the two lines provide buy or sell signals. It also has overbought and oversold zones, and parameters can be adjusted based on the coin's volatility;

MACD (Moving Average Convergence Divergence): Uses line crossovers and "divergence" with price (e.g., price rising but indicator not rising) to judge trend direction. Using multiple periods together improves accuracy.

Now, the key part: "How to find reliable signals":

Don't rely on just one indicator. For example, if MACD signals a buy, check if RSI is recovering from oversold, and if volume is increasing (indicating more buyers);

Ensure consistency across different timeframes. For instance, if both daily and 4-hour charts show bullish signals, it's more reliable, avoiding conflicting signals like one indicating rise and another indicating fall;

Also, filter out "false signals," such as using volatility indicators to assess if the market is too calm, preventing being fooled by short-term fluctuations.

Next, how to operate in actual trading:

Entry timing: Multiple indicators should meet criteria (e.g., MACD golden cross + RSI rebound + price breaking key levels). Also consider volume and market sentiment (e.g., whether traders are overly greedy or fearful);

Position sizing and risk control: Don't invest all your funds at once. Adjust your buy-in proportion based on signal strength, and set "stop-loss" levels (sell when losses reach a certain point to prevent excessive loss). Be cautious with leverage;

Exit timing: Take profits gradually when targets are reached. If indicators show opposite signals (e.g., expected rise but indicators suggest fall), reduce or close positions promptly.

Finally, examples: For instance, when Bitcoin breaks above a moving average and MACD also shows a golden cross, it could be a buy signal; when Litecoin hits a bottom with increased volume and KDJ indicates oversold, you can build positions gradually. Also, avoid common mistakes like relying on a single indicator, randomly changing parameters, ignoring market news. Regularly optimize your strategy by backtesting with historical data and considering other market factors.

Overall, the core idea is "don't put all your eggs in one basket." Use multiple technical indicators for mutual verification, combine with market conditions and risk management to improve your success rate in cryptocurrency trading and avoid pitfalls.
BTC0.24%
LTC3.16%
View Original
post-image
post-image
post-image
post-image
post-image
post-image
post-image
post-image
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 9
  • Repost
  • Share
Comment
0/400
20250818FinancialLuckvip
· 5h ago
2026 Go Go Go 👊
View OriginalReply0
Ryakpandavip
· 7h ago
🌹🌹🌹🌹🌹🌹
Reply0
HighAmbitionvip
· 8h ago
2026 GOGOGO 👊
Reply0
HighAmbitionvip
· 8h ago
Buy To Earn 💎
Reply0
EarnMoneyAndEatMeatvip
· 8h ago
2026 Go Go Go 👊
View OriginalReply0
CoinRelyOnUniversalvip
· 8h ago
Hold on tight, we're about to take off 🛫
View OriginalReply0
CoinWayvip
· 8h ago
2026 Go Go Go 👊
View OriginalReply0
SpicyHandCoinsvip
· 8h ago
2026 Go Go Go 👊
View OriginalReply0
LiMovip
· 8h ago
2026 Go Go Go 👊
View OriginalReply0
View More
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)