Tools of The Trade: Bybit Engage

What are trading tools?

Trading tools are used by traders to give indicators on how the market is going to go. They can be used to show price behavior patterns. Strategies can then be devised to exploit these patterns. They are also used to keep abreast of any news or movements in other markets that may affect the price.

What are the best tools for technical analysis?

Technical analysis is a method of forecasting the direction of an asset price based on past market price and volume of the asset. To maximize your chances of being successful, some very useful technical analysis tools can be utilized.

MACD

The MACD formula is used to indicate trend-following momentum. This is how you calculate it:

RSI

RSI is used to indicate the weakness or strength of an asset through recent changes in its price, from which it can be evaluated if an asset has been overbought or oversold. This is how you calculate it:

Bollinger Bands

The Bollinger Bands is an indicator that is used to determine the movement of an asset’s price within a band by allowing the width of the upper and lower bands to move together with price fluctuation. If you see the price of an asset move out of the upper and lower bands, then a price reversal may be imminent. It can be interpreted as follows:

OBV

OBV is an indicator that uses the volume flow of an asset to predict price changes and to determine how strong signals are to buy or sell an asset. It is used as a cumulative indicator, meaning that:

Final thoughts

There are just some of the best technical analysis tools on offer, and there are many more. What works best for one trader may not be the same for others, so it’s always a good idea to try out as many as possible initially to see which ones work best for you.

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Bybit

Bybit

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One of The World’s Fastest Growing Cryptocurrency Trading Platforms