Technical analysis trading strategies are crucial for analyzing crypto market trends. Traders like to prepare their approach and have a market overview of what’s going on before placing any orders in the crypto market. The trader will use the technical analysis tools like Know Sure Thing (KST) & ZigZag Indicators to get that overview.
Know Sure Thing (KST)
Know Sure Thing is a momentum oscillator based on the smoothed rate-of-change for four separate timeframes. Martin Pring created the KST indicator. KST weighs price momentum for four different price periods and merging them into a unique momentum oscillator. Like other unchained momentum oscillators, traders can use Know Sure Thing to point out differences, signal line crossovers, and centerline crossovers in the market. Martin Pring often used trend lines with the Know Sure Thing indicator.
Know Sure Thing indicator swings above/below the zero line. So this means that momentum favors the bulls when Know Sure Thing is above the line and favors the bears when Know Sure thing is below the line. If the KST passes over the zero trend line for a buy signal, then a buy signal is a strong indication for traders. If the Know Sure Thing holds above the zero trend line for an extended period, an uptrend is confirmed. On the contrary, if the Know Sure Thing passes beneath the zero trend line, then a sell signal is a strong indication for traders. Additionally, if the Know Sure Thing continues to be under the zero trend line, then the downtrend is established. Still, several signals are likely with the Know Sure Thing indicator, the primary centerline and signal line crossovers are usually the most sturdy.
The ZigZag indicator is a unique trading tool that allows for enormous versatility in trading and analysis for crypto traders. The ZigZag indicator uses separate lines to combine vital highs and lows of a particular crypto asset. The minimum price fluctuation parameter defines the crypto asset portion to create a new zig or zag pattern. This indicator excludes asset price fluctuations that are fewer than the given value of this field. Therefore, the ZigZag indicator spotlights notable price changes only.
The ZigZag indicator can distinguish highs and lows of a crypto asset. Crypto traders should be able to recognize higher highs, higher lows, lower highs, and lower lows of a crypto asset just by glancing at the indicator patterns. This provides for a more straightforward evaluation of a trend for crypto traders. The function of the ZigZag indicator is conditional on the kind of chart it is used on. It functions based on closing prices of an asset when utilized on a chart. The ZigZag usually exhibits a significant course change by the lines it creates; this marking out is a recognized market reversal pattern which relates to a head and shoulders pattern. Crypto traders still require to expand such implications from the ZigZag with standard price movement analysis, applying technical indicators such as MA’s or candlestick patterns.
Try HyperTrader for free for 7 days – no credit card required. Download now