Each asset on the market has its own value that is unstable over time. It may rise or fall and we call the process volatility that is a highly challenging characteristic of the crypto market. To operate within it, trend lines are built taking into account different positions of the asset. In addition, there are special tools for their comparison and prediction. These are indicators and each trader selects his own set of them to perform the analysis and build a strong successful strategy for actions. Here we are going to discuss the Supertrend indicator, how it works and what useful data it can bring to you.

All you need to know about the Supertrend indicator formula
-----------------------------------------------------------

This indicator appears as the color changing according to the observed trend. Thus, it follows the trends and creates signals for action according to their reversals. Usually, it works well for markets that are known as trendy. How to read the Supertrend indicator? Imagine that the price of some asset is placed above the line. In such a case, it becomes green and it is advisable to open a purchase signal. On the contrary, when the it is falling and is found below, the indicator becomes red, and it is high time for a sell. This tool is shown on the asset’s price and accounts for two main characteristics, namely a period for the average true range (ATR) and the multiplier. The ATR reveals the asset’s price range, so it corresponds to its volatility and possible movements in the nearest future. Basically, according to traders, this tool is perfect for markets with more stable trends but may generate mistakes in signals in case of some highly unpredictable movements. However, it is often used, especially as a part of the analysis system.

How to use Supertrend indicator?
--------------------------------

As we have already mentioned, it has two colors to reveal the situation. A green line reveals a signal for buying, while a red one shows the time for selling. The point where the change of color occurred is known as the crossover. Thus, the green line corresponds to the bullishness and the red line to the bearishness, and their relationships are utilized to detect support and resistance zones and the stop-loss levels. For its calculation, you have to select the period as some days. According to this value, the ATR is calculated. Then the multiplier is utilized to get the resulting value that you observe as an indicator. Thus, if you take 10 days as a period of interest, the indicator performs an analysis of the prices that were observed during it. The combination is divided by two and from it, the multiplier and the ATR value are subtracted in the case of uptrends and added in the case of downtrends. There are standard settings, namely 10 for ATR and 3 for a multiplier. However, you can change them manually according to your needs. That is recommended for experienced traders and those who already have the basic knowledge of this instrument and its utilization. Thus, when you lower the parameters, the total number of signals increases. That means they come faster but they may contain more mistakes. Such false signals may spoil the strategy, especially if you do not combine this one with other tools. Therefore, it is better to start from the standard settings and then move toward more advanced techniques.

### Possible combinations

If you wish to make your analysis stronger and more reliable, start by combining this indicator with the Relative Strength Index (RSI). The latter utilizes two weeks default period and reveals values below 30 for an oversold market. Thus, it comes as a signal to purchase. On the contrary, its value above 70 shows an overbought situation and time to sell. Therefore, these two instruments give very similar information but they analyze a bit different parts of the market and their complex utilization is always beneficial. Another interesting case happens with the MACD. This one is much more sophisticated and takes into account many slightest movements on the market. Still, it is aimed to reveal uptrends and downtrends. Thus, one can easily compare the results of these two indicators and act when they match. One more option that is helpful is Parabolic SAR that reveals the strength of the trend. It is also very similar to the discussed indicator and has enough sensitivity to prove the analysis made before. Altogether, there are numerous indicators useful for traders. They are based on different values and time frames. Therefore, it is crucial to build up your own strategy according to your goals and then collect a set of the required tools to achieve them. Thus, the Supertrend indicator is a perfect tool for trendy markets and short-term strategies. It is simple and easy to use and can be combined with other similar options to make an accurate analysis and profit from it.

Optimized-Supertrend indicator.png

If you would like to know how to use the Supertrend Indicator for crypto trading and benefit from it, then read this article. Here we reveal all the basics, calculations and how it works

Supertrend Indicator: How to use for crypto trading and benefit from it

This helpful and user-friendly tool reveals signals according to the current situation on the market. It will advise on the moment to purchase or sell.


Supertrend Indicator: How to use for crypto trading

On the one hand, the crypto world lures people with high profits. On the other hand, it is inseparable from the volatility concept. That means trends are changing and often abruptly leaving traders not only disappointed but also at a loss. No wonder traders and investors are constantly looking for some technical tools that can help to overcome this problem. One of them is the exponential moving average that has proven itself an efficient and useful part of the analysis. Let’s outline how to use the EMA indicator and benefit from its information.

Basics of exponential moving average formula
--------------------------------------------

There is such a basic indicator as a simple moving average. It reveals the average price of some amount of candles. However, it has a big lag and sometimes leads to unpleasant mistakes. Thus, EMA was introduced as a tool that gives more weight to recent prices. It gives a quick response to the latest changes compared to the previous one. The main goal of this indicator is to smooth the price and remove insignificant fluctuations. The thing is the formula of this indicator closely follows the price. It utilizes previous values. However, the older data has less influence on the result than the newest. Namely, the calculation is done in the following way: EMA = EMA for the previous period + \[Exponential smoothing constant × (Current price − EMA for the previous period)\] Due to this idea, the lag in the price chart is reduced. The user observes the smoothed price and more reliable and accurate trend than in other cases. Sometimes, such a high sensitivity to prices confuses traders who think about how to trade using EMA. The best approach is to combine several tools and create your own set on which you can rely.

How to use EMA for trading?
---------------------------

The main goal of this tool is to help you to identify the current market trend. When an asset has an uptrend, its price rises higher than the EMA. In case of a bearish situation, the price remains below this indicator. A contraindication in it corresponds to a trend correction.

Thus, you can make a decision based on one of the following situations:*   there is an uptrend when the price is stabilized above the indicator
*   there is a downtrend when it is below it
*   if there is some instability in price, it means correction

How to use EMA to day trade? One has to look for a stable price above the indicator to make a purchase. Furthermore, it is important to evaluate the trend’s strength. There are two main options for this: For short-term understanding, you need from 12 to 26 days. For medium- and long-term strategies use a time frame from 50 to 200 days. Which strategy to use? Here everything depends on your own trading plan and aims. Investors usually prefer long-term options as they give a better understanding of what awaits the market in the future. Day traders are, of course, more interested in short-term predictions. Still, there is always a good chance to combine these two techniques and benefit from the results. The main thing is to rely on more than one indicator and utilize their more informative combinations.

### Searching for a trend

This strategy seeks to find the point at which it is suitable for owners to keep an asset at a current price. For this, traders usually combine EMA and SMA with high profitability. For instance, one can some SMA value for a long-term trend and an EMA for a short-term one. In this case, one should buy when the price exceeds both levels.

### Using the EMA indicator as a dynamic tool

Some traders utilize static support or resistance level. However, the dynamic option that uses EMA is a good option for immediate reactions to the market situation. With its help, one can easily find out the closest reversal points according to the current trend.

### Crossover trading

At last, there is a chance to use a contradiction between two moving averages. Such strategies are called crossovers and one of the most favorite among them is the golden cross. If the 50 EMA is moving above the 200 SMA, it means that short-term traders are on the go, while the long-term trend is also bullish. Such a situation happens not very often but reveals a great chance to profit. In a nutshell, if you are looking for a reliable and accurate tool for your set, EMA is a good candidate for high-quality analysis. As far as we have seen above, it works well both on its own and in pairs with other indicators. Therefore, it provides lots of useful information and helps to navigate trends and profit from their changes and volatility.

Optimized-EMA (2).png

The trader can easily profit from the exponential moving average (EMA) as it reveals uptrends and downtrends with high accuracy. Learn more about its utilization and different strategies

Exponential Moving Average: How to Use EMA to Trade Volatile Crypto

How to use EMA to day trade? One has to look for a stable price above the indicator to make a purchase.

Everybody is aware of the cryptocurrency world for its ability to be unpredictable and changeable. However, it still provides people with opportunities for getting considerable gains. Taking into account the latest splash of Bitcoin and different cryptos, lots of investors question whether we are in full swing of a crypto bull run. In this article, we will figure out the definition of a bull run, how long it lasts, what factors promote a bull run, and give a response to the "when is the next crypto bull run 2023" question.

What Do Crypto Bull Runs Mean?
------------------------------

A crypto bull run, likewise known as a bull market, is utilized interchangeably to point out that the price of assets or valuable papers, for instance, cryptocurrencies or stocks, is increasing fast in an uptrend. There are no distinctions between a crypto bull run and the traditional market. As a rule, a bull run is characterized by the expectation of investors to get benefits from an asset's price increase that grants significant profit from their initial capital. When a crypto bull run occurs, the price of cryptocurrencies commonly is growing significantly. There is a need to mention that a bull run is ordinarily preceded by a period of consolidation. This implies the price of an asset commonly stabilizes after a period of volatility. This, in turn, may be an indicator of a forthcoming bull market. Nevertheless, the bull market hasn't been activated yet.

Factors Promoting to Crypto Bull Market
---------------------------------------

To respond to the "when is the next crypto bull run expected" matter, it is worth sorting out what factors contribute to a crypto bull market. Plenty of reasons first of all drive the crypto bull run. Some of them are: Demand and offer. The interest of the depositors and traders can affect the demand for crypto assets, resulting in prices rising or lowering. The mood of market news. Beneficial partnerships, optimistic bulletins, interesting projects, or technology implementation that arouses the interest of investors will commonly raise the asset's price. Institutional acceptance. This means the usefulness of cryptocurrency that may create a wave effect on retail users to make them switch to mass implementation. Factors connected with politics and economics. Economic development and stability in politics contribute to cryptocurrency implementation and expanding access to financial services. Shortage of alternative investment. Under conditions of uncertainty sedentary and low-income assets are less popular, leading to a sharp increase in volatility of highly profitable assets such as crypto. As the demand rises, the price of crypto will usually rise as well. Interest rate and inflation. Higher interest rates commonly imply it is simpler for a depositor who has free money to invest in speculative and riskier assets, for instance, highly liquid cryptocurrency. Nevertheless, aside from the above-mentioned factors, there are lots of additional factors that may lead to a crypto bull run. This totality of reasons launches the crypto bull market. In comparison with the traditional market, crypto is pretty new. Thereby, it may be complicated to predict exactly when a bull market will happen and grant the answer to the "when is the next crypto bull run?" question.

### Duration of Crypto Bull Market

The duration of a crypto bull run in the cryptocurrency market can differ greatly. Certain crypto bull runs may last for several weeks only. At the same time, other crypto bull markets may last for a few years. Like factors that may promote a crypto bull run, there are likewise factors that determine the duration of a crypto bull market. Some of these factors are: 

*   Moods of depositors;
*   Institutional acceptance;
*   Regulations;
*   Basic principles;
*   Impact of politics.

Usually, the stronger the positive mood, the higher the probability the crypto market will maintain a bull run over a long period. As a rule, periodic correction is unavoidable. Also, the crypto price may decrease before going up again. This is an ordinary trajectory and there is no need to interpret it as an indicator that the crypto bull run has finished.

### How Often Crypto Bull Runs May Occur

Crypto bull runs may occur for many years with rare frequency. Because the crypto market brags about volatility, bull runs may happen everywhere. Depending on the market, you may either await several bull runs or pass through a long period of bearish conditions before a reversal occurs. The duration of a bull run differs depending on the optimism and depositor's certainty in the digital assets. The more positive agiotage around the asset, the longer the crypto bull run will last. It may last from a week to several months. However, a bull run will last for a few years without a correction with a low probability. The cryptocurrency market is famous for its volatility. This implies asset prices may fluctuate fast. For instance, Bitcoin prices may take off more than 100% unexpectedly and without warning during a bull run.

When Is The Next Big Crypto Bull Run?
-------------------------------------

Recently, a lot of rumors and presumptions are on the internet concerning the next bull run. Many people are interested in “will there be another crypto bull run”? While there are no specific predictions regarding the time the next crypto bull run will happen, some experts have carried out the analysis and have their own opinions on this matter. When is the next predicted crypto bull run? Based on experts' viewpoints and empirical market behavior, the next crypto bull market will happen approximately during Bitcoin's halving event, which is awaited to happen in 2024. Nevertheless, certain experts predict that the bull run may occur already in 2023.

### Conclusion

To sum up we can say that whether you are a trader or investor, it is vital to bear in mind that the cryptocurrency market is greatly volatile and unpredictable. No one will provide you with an absolute answer when the next crypto bull run occurs. Still, careful research and a clear comprehension of the risks connected may influence your return on investment. It is advisable to diversify your portfolio and make investments in what you can permit to lose.

Optimized-Blog (1) (1).png

A crypto bull run, likewise known as a bull market, is utilized interchangeably to point out that the price of assets or valuable papers, for instance, cryptocurrencies or stocks, is increasing fast in an uptrend. 

When Is The Next Crypto Bull Run? (2023)

The Moving Average Convergence Divergence (MACD) has been utilized in traditional finance markets for a long time (approximately fifty years). Nowadays, traders of cryptocurrency are employing MACD to track trend changes and increase their income. Since the cryptocurrency market is pretty volatile, the momentum indicator may be particularly beneficial in assisting traders to deal more reasonably because they receive a representation of short-term market movements. Let's sort out below in detail what is the MACD in trading and how to use it.

What Is an MACD Indicator?
--------------------------

Moving Average Convergence Divergence, abbreviated as MACD, is a technical indicator widespread in crypto traders' circles. MACD shows the current momentum of a cryptocurrency, involving its direction and force. While working with the MACD indicator, one should take into account two lines, such as the MACD line and a signal line. Once the MACD intersects above the signal line, it points out a bullish trend. Likewise on the contrary once the MACD intersects below the signal line, it messages a bearish trend. Aside from the MACD and signal lines, the MACD indicator likewise involves a histogram. The histogram implies just a difference between the MACD and a signal line. It serves as a helpful addition to the indicator since it reveals the force and direction of the trend fast. The histogram will be above the zero line once MACD is bullish. At the same time, the histogram will be below the zero line once MACD is bearish. The more the bars are growing and declining, the stronger the trend will be.

What Is MACD Indicator Used For?
--------------------------------

Moving Average Convergence Divergence is a momentum indicator following a trend. Being a part of the oscillator family of technical indicators, MACD provides you with the possibility to: 

*   Evaluate the current direction of the trend (whether it is bullish or bearish) and forecast where the price will go with a higher probability based on the ratio between the two moving averages.
*   Determine the rate of change of cryptocurrency prices, particularly the speed of the trend or its momentum. Readings of the MACD momentum are helpful in case, for instance, retail traders intend to evaluate the weakness or force of a crypto trend.

Glancing at the price chart, the MACD indicator will have the look of the oscillator with two moving averages with the exception of it having no certain boundaries in comparison with the most widespread oscillators. An extra MACD histogram is superimposed over the two moving averages. This completes the MACD indicator. MACD signals may be interpreted in several ways. In particular, MACD can assist traders to discover three main types of signals, such as signal line intersections, zero line intersections, and divergence.

### Shun Spurious MACD Signals

It is vital to mention that Moving Average Convergence Divergence by itself should not be regarded as an effective way to increase your income. Undoubtedly, MACD isn't a completely reliable source of making decisions if you consider it outside of the overall market context. MACD may usually attract traders with spurious signals of a trend reversal. For instance, MACD may usually intersect above the signal line and indicate a bullish intersection, while the asset price goes downward. This signal is known as a "false positive". Similarly, when MACD indicates a bearish intersection, while the price is still growing, the signal will be regarded as a "false negative". If traders don't want to appear in this trap, they should search for different confluence signals. It would be perfect if at least three various signals coincide and be accompanied by relevant news or rumors. After that, you will have the possibility to purchase or sell a chosen crypto asset with greater confidence.

Conclusion
----------

MACD is an amazing instrument for traders because of its ease and precision. This tool unites the market's momentum and its trend into a single indicator. Being a universal indicator, MACD lets make the chart less cluttered and ensures a better representation of the price action. Nevertheless, it is advisable to pay attention to other signals rather than making decisions leaning exclusively upon the MACD signals. There is no doubt that Moving Average Convergence Divergence is one of the most helpful technical indicators in crypto. MACD gathers lots of information into an easy instrument. Still, as with all technical indicators, Moving Average Convergence Divergence leans on historical data and can't forecast future market movements with 100% certainty. Thus, you should ensure you manage your risks and avoid leaning upon one technical indicator. Fortunately, nowadays, lots more information is available that can assist you to trade wisely and reasonably.

Optimized-MACD.png

The Moving Average Convergence Divergence (MACD) is a trading indicator utilized in technical analysis. MACD is intended to detect changes in the direction, duration, force, and momentum of a trend in a stock's price.

What Is a MACD Indicator in Crypto Trading?

The Moving Average Convergence Divergence (MACD) is a trading indicator utilized in technical analysis. MACD is intended to detect changes in the direction, duration, force, and momentum of a trend in a stock's price.


A golden cross is regarded as one of the most widespread bullish signals for cryptocurrency traders. However, it doesn't always imply you can enter the market instantly. In other words, the golden cross is a technical chart pattern pointing out the possibility of a large rally. Let's familiarize ourselves with the golden cross pattern closer and define whether it really works.

Explanation of Golden Cross Pattern Meaning
-------------------------------------------

A golden cross is a figure on the chart in which a short-term moving average intersects a long-term moving average. The golden cross is a bullish pattern of breakthrough created by intersection including the short-term moving average of security paper (for instance, the 15-day moving average) breaking through its long-term moving average (for instance the 50-day moving average). Since long-term indicators have greater weight, the golden cross points out a bull market on the horizon and is sustained by the trading of high volumes. A golden cross pattern on the charts admires traders of cryptocurrency for its promises of gainful potential in the future mostly because of its amazing headway and prosperity in traditional markets.

### Difference between Death Cross and Golden Cross Pattern

Somebody may wonder whether a golden cross and a death cross are the same. Answering this question, a golden cross and a death cross are complete opposites. A golden cross points out a long-term bull market. At the same time, a death cross messages a long-term bear market. A golden cross and a death cross belong to a solid acknowledgment of a long-term trend by the emergence of a short-term moving average intersecting the basic long-term moving average.

Main Stages to a Golden Cross
-----------------------------

After giving a response to the "what is a golden cross in stock trading" question, one may go on to determine the three stages of a golden cross. They are as follows: 

*   A downtrend that eventually finishes when sales are dwindling.
*   A second stage during which the shorter moving average intersects the longer moving average.
*   A third stage is known as the continuing uptrend which, as everybody hopes, will result in rising prices.

The first stage needs that a downtrend hits rock bottom when sales dwindle. In the second stage, the shorter moving average creates an intersection through the larger moving average to induce a breakthrough and acknowledgment of trend reversal. The third stage stands for the continuing uptrend following price increases. The most widely utilized moving averages are the 50-period and the 200-period moving average. The period stands for a certain time increment. As a rule, larger time periods have a tendency to create stronger and more lasting breakthroughs. Day traders usually utilize smaller time periods, such as the 5-period and 15-period moving averages for trading intraday golden cross breakthroughs. It is likewise possible to adjust the time interval of the charts from 1 minute to weeks or months. Like larger periods grant stronger signals, the same refers to chart time periods. The larger the chart time interval means the golden cross breakthrough will be stronger and more lasting.

Principle of Work of Golden Cross Pattern in Stock Trading
----------------------------------------------------------

A golden cross commonly precedes considerable price rallies across traditional and crypto markets. That's why traders consider golden crosses to be “buy signals”. However, situations have taken place when a golden cross has been followed by fake breakthroughs. This is a reason why there is a need to regard the golden cross pattern together with additional indicators before accepting a decision. The case study grants an explanation that a golden cross isn't completely precise in predicting future tendencies. Instead, golden crosses may simply help traders and analysts by using momentum indicators alongside fundamentals to predict price movements in the short and long term. Simply speaking, it is recommended for traders to not purchase too early into a golden cross formation. The better idea is to wait until the price consolidates sideways or decreases and detect short-term support before making a decision to enter a deal. It is likewise possible to change the determination of a golden cross in volatile market conditions by altering moving averages.

### Conclusion

What is a golden cross pattern and can we say it works? Golden crosses are utilized in trading and represent a form of technical analysis. A golden cross messages a bull market. It may be defined as an acknowledgment of a long-term trend from the emergence of a short-term moving average intersecting with the basic long-term moving average. Golden crosses are useful for traders since they assist in making investment decisions, in particular knowing when it is better to enter and exit a trade. Although golden crosses really occur before large price rallies in cryptocurrency markets, there is still a risk of appearing in a trap. In the end, traders should be careful with intersection signals. The reason is that blindly following these signals may lead to losses. Since false signals may appear, it is vital to acknowledge any golden cross with extra technical indicators before making deals.

Optimized-Blog (2) (1).png

What is a golden cross pattern and can we say it works? Golden crosses are utilized in trading and represent a form of technical analysis.

What is a golden cross pattern and how does it work?

It is crucial for a trader to select proper entry and exit points on the market. The volatility is probably the one thing that is constant here and we know that everything is changing constantly. To cope with this challenging situation, different technical indicators were developed. One of them is the relative strength index (RSI). It belongs to the momentum indicators and reveals overbought or oversold moments for a cryptocurrency you are interested in. Like an oscillator, this tool calculates different values and predicts probable price fluctuations as well as their speed. Let us discuss what is RSI in trading in detail and how one can benefit from its utilization.

What is RSI indicator?
----------------------

This tool was described in 1978 and since that time has gained quite big popularity. Traditionally, it evaluates price changes in two weeks period. Still, one can easily extend or reduce the latter according to the existing needs and aims. The calculation is possible for both minutes and weeks. So, what is RSI and how is it calculated? There is a simple formula: RSI = 100 − \[100/(1 + RS)\] Here RS is equal to Average Gain/Average Loss. Both average values are calculated according to the time frame you set. Almost any modern platform or exchange like Exolix offers an automatic RSI calculation. You just need to select it and apply it to your other instruments. The RSI line graph will immediately appear on the screen. What is an RSI indicator used for? It is a great tool to reveal general trends in the market. The most straightforward way of utilizing it is purchasing when an item is oversold and selling if it is overbought. The first situation is shown by an index of 30% or less. The second situation happens with a value of 70% and more. An overbought situation corresponds to the following downtrend and vice versa. Thus, one can understand what will be the future movements in price and their general direction, and plan his own transactions in advance. Actually, RSI serves as a basis for versatile strategies in trading. Many users begin to purchase or sell an asset when RSI is in the middle or crosses this line. This means a beginning of a novel trend that one can successfully catch in time. When its value is more than 50, it is about a bullish trend. When it falls under this value, a bearish trend begins. Furthermore, with its help, one can predict the reversals of the trend. This is a basic introduction to what is RSI in crypto and what data it provides to the trader. It is a reliable navigator in this highly unpredictable and volatile world and one of the first recommended indicators for those who decided to learn more about technical analysis and its instruments.

What is RSI and how to use it?
------------------------------

After you have learned the basics of what is RSI and how it works, you can introduce it into your practice before you swap or convert something. If you wish to read these signals correctly and get more assurance on your activities, try to utilize RSI divergence. This indicator shows the moments when the oscillator disagrees with the observed movements in price. It reveals the bearish and bullish trends. A bullish divergence means that a low price is observed while the standard RSI is higher low. This means this asset is going to move upward in the nearest future. However, it is not obvious from the current volatility observed. An opposite bearish divergence when the RSI is on a higher high but it does not correspond to the prices. In this case, one can wait for a drop in the price and act correspondingly. There is also a swing rejection technique based on this indicator. It is similar to a divergence described above, just here we observe more abrupt trend changes. In addition, when we discuss what is RSI, it is crucial to keep in mind the default time frame. It is equal to two weeks and is suitable for most of the players on the market, especially for swing traders. However, one can easily adjust the sensitivity to his own needs, for example: 

*   for short-term strategies 9–11 days are common;
*   a long-term strategy requires from 20 to 30 days to get a reliable average.

Therefore, do not hesitate to apply your own settings and learn how to benefit from this indicator. In its basic utilization, it is quite straightforward and at the same time helpful, especially for beginners. One has to gain some experience to start feeling trends as they are. Anyway, a proper set of indicators should be always at hand and you can begin with RSI.

Optimized-RSI.png

What Is RSI and How Do You Apply It to Crypto Trading? This indicator calculates values of assets and predicts probable price fluctuations and their speed. It helps to see and follow trends

What Is RSI and How Do You Apply It to Crypto Trading? Start to Use the Tool

What Is RSI and How Do You Apply It to Crypto Trading?

The Exolix cryptocurrency blog is dedicated to providing useful trading tips, guides. More guides, trading tips and latest crypto news.

Exolix Blog

Supertrend Indicator: How to use for crypto trading

Exponential Moving Average: How to Use EMA to Trade Vol...

When Is The Next Crypto Bull Run? (2023)

What Is a MACD Indicator in Crypto Trading?

What is a golden cross pattern and how does it work?

What Is RSI and How Do You Apply It to Crypto Trading?

Popular tags

Follow us