Blockchain and Cryptocurrency Advancced - Practical Demonstration Using the A/D Indicator

Buy – MATIC/USDT

On the MATIC/USDT chart, I was made use of the A/D indicator for buy signal on the MATIC/USDT pair on the 30 mins time frame. The big body candlestick along with the upward slope of the A/D oscillator line showed that the buyers are still in control and buying pressure is strill holding strong. For me, that was a good buy signal. I entered the market at 1.351 USDT and using the 2:1 risk-reward, I set my take profit at 1.371 USDT and my stoploss at 1.341 USDT. After placing the buy trade, I was able to make profit from the trade.

Indicator that can be used in conjunction with the A/D Indicator

MATIC/USDT Chart

When it comes to making use of technical indicators for technical analysis in identifying trends and predicting future price movements, it is important to always combine more than one for signal confirmations. The A/D indicator has proven to be a very powerful indicator for determining the trends in the market and also predicting trend reversals just by the movement of the oscillating line. However, it is always a good idea to combine the A/D indicator with another indicator like moving average, RSI or MACD for confirmations.

For this, I will be combining the A/D indicator with the RSI indicator. The RSI indicator is a very powerful indicator that indicates overbought and oversold of a particular cryptocurrency. When the RSI line is below 30, it means that the price is in oversold zone, and when the line is above 70, it is in overbought zone. This can be used for confirmation for the A/D indicator. If the A/D indicator line is falling along with the price, and the RSI is falling and moving towards the oversold zone, it means that there is a downtrend movement.