✅ Which indicators provide the most accurate Long and Short signals.
✅ How to use indicators in algorithmic trading.
✅ Which indicators work best on different timeframes.
✅ How to automate trading with TradingView and Cryptonna.
✅ Common mistakes traders make when analyzing signals.
🔥 Technical analysis is a powerful tool for successful trading.
Indicators help traders identify trends, support and resistance zones, and entry and exit points. In this guide from Cryptonna.com, we will go beyond the basics and explore advanced indicators used by professional traders.
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🔹 TOP Indicators for Finding Long and Short Signals
💡 These indicators help identify trends, reversals, breakout levels, and confirm trading signals.
1. ADX (Average Directional Index) – Measuring Trend Strength
🔹 What is it?
ADX measures the strength of a trend, helping traders determine if a trade is worth entering.
✅ Long Signal: ADX > 25, +DI crosses above -DI.
✅ Short Signal: ADX > 25, -DI crosses above +DI.
📌 How to use?
✔ If ADX < 20 – weak trend, avoid trading.
✔ If ADX > 40 – strong trend, potential for a breakout trade.
✔ Use with EMA or MACD to filter false signals.
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2. Ichimoku Cloud – Identifying Trend and Reversals
🔹 What is it?
Ichimoku is a comprehensive indicator that shows trend direction, support and resistance levels.
✅ Long Signal: Price above the cloud, Tenkan crosses Kijun upwards.
✅ Short Signal: Price below the cloud, Tenkan crosses Kijun downwards.
📌 How to use?
✔ Best for long-term trading (H4 and higher).
✔ Not effective in sideways markets.
✔ Combine with ADX to filter weak trends.
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3. Stochastic RSI – Identifying Overbought and Oversold Conditions
🔹 What is it?
Stochastic RSI is a more sensitive version of RSI that provides faster entry signals.
✅ Long Signal: Stoch RSI < 20, line crosses upwards.
✅ Short Signal: Stoch RSI > 80, line crosses downwards.
📌 How to use?
✔ Best for scalping and intraday trading.
✔ Combine with MACD for signal confirmation.
✔ Use ATR to avoid trading in low volatility markets.
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4. ATR (Average True Range) – Measuring Volatility
🔹 What is it?
ATR measures market volatility and helps traders set proper exit points.
✅ Long Signal: High volatility + breakout upwards.
✅ Short Signal: High volatility + breakout downwards.
📌 How to use?
✔ Does not provide directional signals but helps with Stop-Loss placement.
✔ ATR is high in trends, low in range-bound markets.
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5. VWAP (Volume-Weighted Average Price) – Institutional Traders’ Indicator
🔹 What is it?
VWAP calculates the average asset price weighted by volume, showing how big traders are positioning.
✅ Long Signal: Price above VWAP.
✅ Short Signal: Price below VWAP.
📌 How to use?
✔ Best for intraday trading on lower timeframes (M5, M15, H1).
✔ Institutions use it for trade execution.
✔ Combine with RSI and MACD for better accuracy.
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🔹 How to Automate Trading with These Indicators?
📌 Automation setup:
1️⃣ Add the indicator in TradingView (ADX, Ichimoku, ATR, VWAP, etc.).
2️⃣ Create an alert (TradingView Alerts) at key levels.
3️⃣ Connect TradingView Webhook API to Cryptonna.
4️⃣ Configure the bot: Choose an exchange (Binance, Bybit), set Stop-Loss and Take-Profit levels.
📢 Conclusion: Automating indicators helps traders react faster to signals and reduces emotional trading errors.
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🔹 Common Mistakes When Using Indicators
📌 TOP 3 mistakes traders make when analyzing indicators:
❌ Ignoring Market Context
💡 Solution: Analyze trends together with fundamental factors.
❌ Blindly Following Indicator Signals
💡 Solution: Use confirmations (VWAP + ADX, RSI + ATR).
❌ Lack of Risk Management
💡 Solution: Set Stop-Loss and Take-Profit based on ATR.
📢 Conclusion: Successful traders use a combination of indicators, filter signals, and always consider risk management.
