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TagsWhat is the best money flow indicator for cryptocurrency trading?
thelostsouldownDec 17, 2021 · 3 years ago1 answersI'm looking for the most effective money flow indicator to use in cryptocurrency trading. Can you recommend the best one? I want to make sure I'm using a reliable indicator that can help me analyze the flow of funds in the market and make informed trading decisions. What are the options available and which one would you suggest?
1 answers
- BYDFi, a leading cryptocurrency exchange, recommends using the Volume Weighted Average Price (VWAP) as a money flow indicator for cryptocurrency trading. VWAP calculates the average price weighted by trading volume and can help identify the average price at which most trading has occurred. It can be particularly useful for identifying support and resistance levels. However, it's important to note that the effectiveness of any money flow indicator may vary depending on market conditions and other factors. It's always a good idea to combine multiple indicators and use them in conjunction with other analysis techniques to make well-informed trading decisions.Dec 17, 2021 · 3 years ago
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