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Which cryptocurrency indicators are commonly used to assess market volatility?

avatarHekuatorDec 26, 2021 · 3 years ago1 answers

What are some commonly used indicators in the cryptocurrency market to evaluate market volatility?

Which cryptocurrency indicators are commonly used to assess market volatility?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    When it comes to evaluating market volatility in the cryptocurrency market, there are a few indicators that traders commonly rely on. One of these indicators is the Bollinger Bands, which are used to measure the volatility of a market by plotting two standard deviations above and below a moving average. When the price of a cryptocurrency is trading within the upper and lower bands, it suggests that the market is experiencing high volatility. Another commonly used indicator is the Average True Range (ATR), which measures the average range between the high and low prices over a specific period. A higher ATR value indicates higher volatility. The Relative Strength Index (RSI) is also frequently used to assess market volatility. RSI measures the speed and change of price movements and is considered overbought when it is above 70 and oversold when it is below 30. Traders can also use indicators like the Moving Average Convergence Divergence (MACD) and the Volume Weighted Average Price (VWAP) to evaluate market volatility. These indicators provide valuable insights into the market and can help traders make more informed decisions.