Any trader in any market is using different trading tools such as indicators or scripts to help get a better understanding of the market direction. There are thousands of tools out there, some better than others, but they all fit a specific trading strategy. And yes, the most important tool for cryptocurrency trading exists.

When thinking of trading tools we mainly think of indicators. So we understand that different trading strategies require different trading indicators. Ultimately, different trading markets require different trading indicators, specially because the cryptocurrency market is more volatile than traditional markets.

The most popular trading indicators are:

  • Moving Average Convergence Divergence (MACD)
  • Relative Strength Index (RSI)
  • Stochastic
  • Volume
  • Fibonacci Retracement
  • Moving Averages, and Exponential Moving Averages
  • Different types of oscillators

The list can continue and become a very long study if we would go into details, but there is one particular trading indicator that has since recently become the most important tool for cryptocurrency trading: the Momentum Oscillator

Oscillators in general allow traders to determine overbought or oversold conditions, but they are often too simplistic in design which does not allow the average trader to easily understand the market trend or market momentum. In the end, we are not all mathematicians who can count cards in a casino, so we require the indicators we use on our charts to translate the data in plain English.

This reminds me of the scene with Jeremy Irons, in Margin Call, sitting at the big early morning meeting, asking his employee, Zachary Quinto: “Please stand up, and explain as you might for a young child, or a golden retriever.”. And that is true in every way for almost all traders… we become more lazy in study, which is where trading indicators and other trading scripts and strategies come in to satisfy the time consuming research required.

To help fulfil this time consuming task of researching the trading chart, we have built perhaps the best Momentum Oscillator for all markets.

The most important tool for cryptocurrency trading

Enlarged visual representation of the Momentum Oscillator TradingView indicator

Our trading indicators, the Momentum Oscillator, combines RSI and Stochastic to gain the necessary data and uses Heikin Ashi candles to translate the data into an easy to understand visual representation of the market trend and market momentum.

It can be used for any tradable market on TradingView such as crypto, stock, forex, metals, etc and it can apply for any trading strategy: scalping, day trading, swing trading, etc.

As an easy to use strategy for the Momentum Oscillator, a trader should place a sell when the green Heikin Ashi candles and RSI plot enter the top overbought red boundary, and should buy the red Heikin Ashi candles and RSI plot enter the bottom green boundary. Traders should not perform any trades if the Heikin Ashi candles are within the middle blue area.

That is just one example of a trader using the Momentum Oscillator if the trader would be basing him/her self only on the Momentum Oscillator. Of course, we always recommend that traders should never be relying on only one trading indicator, and should always be using at least 2 or 3 to verify if the trade they are interested in is most likely to be a successful one based on the market trend.

Although the indicator comes with predefined settings which we built to match any market and trading strategy, the Momentum Oscillator comes with a proper configuration panel that allows traders to customise how the Heikin Ashi candles are painted or how the RSI and Stochastic behave. Styling is also part of the configuration panel and it includes a significant amount of possibilities to color the indicator in different manners.

Although it can never be predicted, one of the key of success in trading is to understand the market direction as best as possible. The Momentum Oscillator helps do exactly that. It is beginner friendly but also advanced for even the most experienced traders.