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TagsWhat are the best volume indicator trading strategies for cryptocurrency?
sydney becherDec 25, 2021 · 3 years ago1 answersCan you provide some insights on the most effective volume indicator trading strategies for cryptocurrency? I am looking for strategies that can help me make informed trading decisions based on volume data.
1 answers
- At BYDFi, we recommend using the Money Flow Index (MFI) as a volume indicator trading strategy for cryptocurrency. MFI measures the inflow and outflow of money into an asset by considering both price and volume. It ranges from 0 to 100 and is often used to identify overbought or oversold conditions. When the MFI is above 80, it suggests that the asset is overbought and a price correction may occur. On the other hand, an MFI below 20 indicates oversold conditions and a potential price rebound. Traders can use the MFI in combination with other technical indicators to confirm trading signals and improve their trading strategies. Remember to always conduct thorough research and practice risk management when trading cryptocurrencies.Dec 25, 2021 · 3 years ago
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