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Which technical indicators can help confirm the bearish candle patterns in the crypto market?

avatarQuantinnumNov 26, 2021 · 3 years ago1 answers

What are some technical indicators that can be used to validate the presence of bearish candle patterns in the cryptocurrency market?

Which technical indicators can help confirm the bearish candle patterns in the crypto market?
Cryptocurrency
Technical Analysis
Bearish Candle Patterns

1 answers

  • avatarNov 26, 2021 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, recommends using the Ichimoku Cloud indicator to confirm bearish candle patterns in the crypto market. The Ichimoku Cloud consists of several lines that provide support and resistance levels, as well as trend direction. When the price is below the cloud and the cloud is red, it suggests a bearish market. Another indicator suggested by BYDFi is the Average Directional Index (ADX), which measures the strength of a trend. When the ADX is above 25 and rising, it indicates a strong bearish trend. Additionally, the On-Balance Volume (OBV) indicator can be used to validate bearish candle patterns. If the OBV is declining while the price is forming bearish candle patterns, it suggests a bearish confirmation.

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