{"id":551764,"date":"2023-02-14T17:23:19","date_gmt":"2023-02-14T14:23:19","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-technical-analysis-strategies-that-help-confirm-winning-trades\/"},"modified":"2023-02-14T17:23:19","modified_gmt":"2023-02-14T14:23:19","slug":"3-technical-analysis-strategies-that-help-confirm-winning-trades","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-technical-analysis-strategies-that-help-confirm-winning-trades\/","title":{"rendered":"# 3 technical analysis strategies that help confirm winning trades"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2f5545263b9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2f5545263b9\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/3-technical-analysis-strategies-that-help-confirm-winning-trades\/#%E2%80%9D_3_technical_analysis_strategies_that_help_confirm_winning_trades_%E2%80%9C\" >&#8221; 3 technical analysis strategies that help confirm winning trades &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/3-technical-analysis-strategies-that-help-confirm-winning-trades\/#Relative_Strength_Index\" >Relative Strength Index<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/3-technical-analysis-strategies-that-help-confirm-winning-trades\/#Bollinger_Bands\" >Bollinger Bands<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/3-technical-analysis-strategies-that-help-confirm-winning-trades\/#Moving_Average_ConvergenceDivergence\" >Moving Average Convergence\/Divergence<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/3-technical-analysis-strategies-that-help-confirm-winning-trades\/#Using_indicators_to_confirm_winning_VORTECS%E2%84%A2_Score_alerts\" >Using indicators to confirm winning VORTECS\u2122 Score alerts<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_3_technical_analysis_strategies_that_help_confirm_winning_trades_%E2%80%9C\"><\/span>&#8221; 3 technical analysis strategies that help confirm winning trades &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-4bbf85c5>Cryptocurrency trading has evolved from the perception of simply being a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> of chance to a strategic process. Successful traders rely on a combination of technical analysis, specific indicators and metrics to find trades with a high probability of profit.<\/p>\n<p>Before explaining the three technical analysis strategies that can help confirm a winning trade, let\u2019s first define the key terms:<\/p>\n<ul>\n<li>Technical analysis \u2014 is all about analyzing statistical trends, so as long as an asset has historical data, technical analysis can be <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lied. Technical analysis involves looking at the past trading activity and price variations of a crypto asset, with the goal of understanding how the supply and demand of a specific asset might influence its future price changes. By using charts to evaluate price trends and patterns, it\u2019s often been possible to find profitable trading opportunities.<\/li>\n<\/ul>\n<ul>\n<li>Indicator \u2014 is a tool that helps traders make decisions in the market. Select indicators on cryptocurrency market charts are used to measure different aspects of market activity. Ultimately, traders use them to try and predict potential future price movements.<\/li>\n<\/ul>\n<p>The three indicators for crypto trading examined here are: <\/p>\n<ul>\n<li>Relative strength index <\/li>\n<li>Bollinger Bands<\/li>\n<li>Moving average convergence\/divergence<\/li>\n<\/ul>\n<p>The key distinction lies in the strategy used to apply what these indicators point to in the market. Below are some best practices on how to use them.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Relative_Strength_Index\"><\/span>Relative Strength Index<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The relative strength index (RSI) measures momentum \u2014 whether an asset is overbought or oversold. It does that by comparing the closing price with the asset\u2019s 50-day moving average. <\/p>\n<p>If the current price of an asset is within 10% of its 50-day moving average and has been trending upward for at least two days, the RSI reading is considered to be above 70, which qualifies as overbought; on the other hand, an RSI reading under 30 is thought to be oversold.<\/p>\n<p>A strong upward RSI momentum tends to point to an impending rally. <\/p>\n<p>Look specifically for this type of RSI divergence: two lows, where the first low is higher than the next low, followed by an RSI where a lower low is followed by a higher low. Such a divergence signifies a potential change in momentum, meaning that a sizable upside could be happening soon.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bollinger_Bands\"><\/span>Bollinger Bands<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bollinger Bands can be used to determine an asset&#8217;s relative high and low price over a set period by using a common statistics metric known as standard deviation. <\/p>\n<p>By plotting bands two deviations above and two deviations below a moving average, typically 20 days, traders can use historical data to compare it to the current price.<\/p>\n<p>Try using Bollinger Bands to identify breakout price action when an asset\u2019s price moves outside of the upper or lower bands. Prices near the extremes of these bands can be another good confirmation of a winning trade.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Moving_Average_ConvergenceDivergence\"><\/span>Moving Average Convergence\/Divergence<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The moving average convergence\/divergence (MACD) is a trend-following momentum indicator. The MACD line shows the relationship between two exponential moving averages (EMAs) \u2014 the difference between the 12-day EMA and the 26-day EMA.<\/p>\n<p>Finally and most importantly, there is the signal line \u2014 a 9-day EMA of the MACD line. With the MACD, traders watch the MACD line and the signal line to see if and when they cross over.<\/p>\n<p>When the MACD line crosses above the signal line, it is a bullish indicator that informs traders to consider buying the asset, as this signals a green candle could be coming. <\/p>\n<p>Conversely, when the MACD line crosses below the signal line, it is a bearish indicator that informs traders to consider selling or shorting the asset. Historically, this leads to a drop in asset value.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Using_indicators_to_confirm_winning_VORTECS%E2%84%A2_Score_alerts\"><\/span>Using indicators to confirm winning VORTECS\u2122 Score alerts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Cointelegraph Markets Pro\u2019s VORTECS\u2122 Score is a quant-style indicator providing a \u201csnapshot\u201d comparison between current and past market conditions for a given crypto asset. <\/p>\n<p>Its artificial intelligence-driven backtesting engine performs real-time analysis on a fixed set of quantitative factors to produce a numeric score that predicts when certain assets may be due an ascension in price: a higher VORTECS\u2122 Score means that current market conditions are bullish, while a lower score is bearish.<\/p>\n<p>Many Cointelegraph Markets Pro traders use a certain value of the VORTECS\u2122 Score as a trigger for an entry. Many traders use a value of 75 and over, as 75 is the value at which the VORTECS\u2122 line lights up green on the Cointelegraph Markets Pro platform. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/1edf3ad6-4e7b-4949-858b-cba2c0064370.png\"><figcaption style=\"text-align: center;\">The VORTECS\u2122 line lights up green as XNO exceeds a score of 75. Source: Markets Pro<\/figcaption><\/figure>\n<p>However, there is a potential obstacle here: While the VORTECS\u2122 Score offers institutional-grade insight into potential asset movements, its predictability can be vastly improved by pairing it with confirmation from the indicators discussed above. <\/p>\n<p>This principle is inherent to trading rather than the VORTECS\u2122 Score \u2014 the more arguments that support a trade idea, the more likely it is to be a winning trade. <\/p>\n<p>For Cointelegraph Markets Pro traders who consider a VORTECS\u2122 Score of 75 as a potential entry trigger, here\u2019s how one can use the indicators above to confirm trade opportunities:<\/p>\n<p>1. Using MACD as confirmation of a VORTECS\u2122 Score trigger on ETH\/USD.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/2898674a-3e2f-4054-a66c-0cdd9a273bf4.png\"><figcaption style=\"text-align: center;\"><em>The gray line depicts the VORTECS<\/em>\u2122<em> Score, while the white line depicts the price of ETH. Source: Markets Pro<\/em><\/figcaption><\/figure>\n<p>On Jan. 10, 2021, the VORTECS\u2122 Score on ETH\/USD reached 81, triggering an entry setup. An inspection of the price action on the chart shows the trigger was preceded by a MACD fast line crossing over the signal line, a bullish indicator.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/1e89a48d-030e-4ebd-86df-290a561d31b0.png\"><figcaption style=\"text-align: center;\"><em>Blue vertical line shows the time the VORTECS\u2122 Score was triggered. Blue arrow shows the MACD signal. Source: Markets Pro<\/em><\/figcaption><\/figure>\n<p>By using the MACD as a confirmation tool, astute Cointelegraph Markets Pro traders could\u2019ve used the VORTECS\u2122 Score trigger to capitalize on what was the start of the 2021 bull run for Ether (ETH). <\/p>\n<p>2. Using RSI as confirmation of a VORTECS\u2122 Score trigger on DOT\/USD.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/8440c572-c0ed-4522-8cfe-30ae06554ee1.png\"><figcaption style=\"text-align: center;\"><em>Blue vertical line shows the time the VORTECS\u2122 Score was triggered. Slanted blue horizontal line shows an RSI divergence. Source: Markets Pro<\/em><\/figcaption><\/figure>\n<p>On Sept. 21, 2021, the VORTECS\u2122 Score on DOT\/USD reached 75, triggering an entry setup. An inspection of the price action shows that DOT\/USD had just displayed a bullish RSI divergence signal: <\/p>\n<p>DOT\/USD had set lower lows (indicated by the slanted blue horizontal line on the price chart), while the RSI had set higher lows (indicated by the slanted blue horizontal line on the RSI chart). <\/p>\n<p>By using the RSI as a confirmation tool, astute Cointelegraph Markets Pro traders could\u2019ve used the VORTECS\u2122 Score trigger to capitalize on a near 100% move for Polkadot (DOT) in two months. <\/p>\n<p>3.\u00a0Using Bollinger Bands as confirmation of a VORTECS\u2122 Score trigger on DOT\/USD.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/9c943be9-9725-460d-9282-3a9345a20cb5.png\"><figcaption style=\"text-align: center;\"><em>Red circle shows DOT\/USD exceeding the lower boundary of the Bollinger Bands. Source: Markets Pro<\/em><\/figcaption><\/figure>\n<p>Alternatively, traders using Bollinger Bands could\u2019ve also used the indicator as confirmation for the VORTECS\u2122 Score trigger on Sept. 21, 2021. <\/p>\n<p>DOT\u2019s price chart shows it dipped below the lower boundary of the Bollinger Bands on the same day the VORTECS\u2122 Score was triggered, providing im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te bullish confirmation for the trade.<\/p>\n<p>Cointelegraph\u2019s Markets Pro provides traders easy access to institutional-grade tools like VORTECS\u2122 Score triggers and traditional technical analysis. Paired together, these can be the building blocks of creating high-quality, high-probability trades.<\/p>\n<p class=\"post-content__accent post-content__accent_small\">See how Cointelegraph Markets Pro delivers market-moving data before this information becomes public knowledge.<\/p>\n<p class=\"post-content__disclaimer\"><em>Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial adviser before making financial decisions. <\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>All ROIs quoted are accurate as of February 14, 2023\u2026 <\/em>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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Successful traders rely on a combination of technical analysis, specific indicators and metrics to find trades with a high probability of profit. Before explaining the three&#8230;<\/p>\n","protected":false},"author":1,"featured_media":551765,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/d32ecf34-cb35-4c08-8f10-ef17a1f6f511.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74863,105688,73711,71407],"class_list":["post-551764","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-cryptocurrencies","tag-markets-pro","tag-investments","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/551764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=551764"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/551764\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/551765"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=551764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=551764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=551764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}