Guides and Tutorials
July 1, 2021

Top Advanced Indicators for Crypto Trading

Single Broker Academy

Every trader knows that cryptocurrency trading is a tricky task that requires certain knowledge and skills and can become impossible without a proper strategy and in-depth analysis. However, most of them use popular yet standard indicators, such as RSI, MACD, Moving Average, and others, to evaluate the situation and make a final choice.

In this article, we'd like to cover less popular indicators that professionals use, with the aim of helping you advance your trading skills. Those indicators will provide a view from a different perspective and, as a part of exhaustive analysis, enhance the overall trading strategy.

The following cryptocurrency trading indicators are less talked about but frequently applied by professionals for currency trading. However, it is important to consider that all of them deliver delayed signals. Besides, you should never base your decisions on one indicator only. Instead, seek signals' verification from different indicators or chart patterns.

Bitcoin Strength Index

Bitcoin Strength Index, also known as the BSI indicator, is a unique tool for successful cryptocurrency trading. It combines two main approaches, Technical Analysis and On-Chain Analysis. For that reason, the BSI indicator is considered one of the best on the market, as it delivers the most comprehensive information available and allows traders to make the most of their trading strategies.

The BSI Index was developed by Ivan On Tech, who decided that it is better to take advantage of the market's volatility and act ahead of other market players rather than feel cautious about it. Ivan On Tech states that volatility is a possibility to achieve better results.

The synergic combination of the Index includes the elements of technical analysis on the one hand. It involves historical trading data, e.g., trading volume or prices, quantitative analysis, economics behavior, and psychology of the market to form predictions for the future market behavior.

On the other hand, it utilizes elements of the on-chain analysis involving blockchain data, such as transactions, smart contracts, block details, and other information regarding who uses the asset - as well as how much and for what purpose.

This one-of-a-kind index enables us to understand any buy and sell signals before most traders. That is why with its help, you can avoid numerous mistakes and improve your trading strategy in time to succeed. For instance, it will help you avoid selling too early in the bull market.

Besides, the cryptocurrency market is considered immature, with most participants lacking knowledge and skills for playing with proper trading strategies. That is why powerful tools like the BSI Index enable us to have an exceptional edge when it comes to investments, selling, or buying cryptocurrency.

BSI Signals

The BSI Index remarkably delivers three different features for both long and short timeframes. It allows users to get a better understanding of the market situation and the development trend. With this Index, you will have access to the following information:

BSI On-Chain Sentiment: As one of the most important signals, this instrument allows us to understand what will happen on-chain before the results in the charts. So, BSI On-Chain Sentiment warns you about the upcoming shift of market sentiment and gives you a clear understanding of what is happening on-chain, giving you time to take necessary actions before everyone sees it in the charts.

BSI Short-Term Trend: This trend indicates the short-term switch of market trends: from bullish to bearish and the other way around. Traders get this information in advance, which helps them to base their decisions on clear prediction, not just intuition, and to act proactively for greater benefits.

BSI Cloud: This feature delivers a long-term prediction of the Bitcoin market strength, including identification of the bull markets support or bear markets resistance. It allows us to learn about and understand the long-term shifting trend better and apply changes to the trading strategy when necessary.

In general, the BSI Index is one of the most advanced and powerful indicative tools in the cryptocurrency trading market nowadays. Having those three signals at hand significantly improves a trader's knowledge and increases their trading strategy's potential when properly used.

MYC Trading Indicator

MYC Trading Indicator is another rare yet advantageous trading indicator used among professionals for detailed information. It is a private indicator developed by the team of professionals at Mycryptopedia.

This trading indicator is based on the valuable combination of a thorough analysis of the trend with momentum oscillators. It enables us to learn about the accurate determination of the phase switch. Precisely, it demonstrates when the cryptocurrency market is most likely to enter a bullish or bearish phase.

MYC Trading Indicator Signals

The indicator advantage is in its trendline feature. Basically, depending on the price crossing upwards or downwards, the trendline indicates the possibility of long signal print or, on the contrary, of short signal print.

This indicator is more powerful compared to other public ones, e.g., RSI or Bollinger Bands, as it delivers a suggestion of recommended entry and exit points. It helps traders to focus on other important things, such as the determination of the position size or the leverage.

There are certain trading pairs that can be traded with MYC Trading Indicator. Below is the list of indicator's accuracy and returns percentages:

Crypto Asset / Return Percentage / Accuracy percentage

BTC / 200% / 70%

ETH / 200% / 70% 

LTC / 250% / 70%

BCH / 100% / 75%

ETC / 350% / 70%

EOS / 250% / 70%

TRX / 650% / 90% 

LINK / 350% / 90%

Net Unrealized Profit/Loss (NUPL)

The Net Unrealized Profit/Loss trading indicator, also named NUPL, is one of the most frequently used On-Chain cryptocurrency indicators. It was created in early 2019 by a group of three specialists, Tuur Demeester, Tamas Blummer, and Michiel Lescrauwaet, to deliver the most powerful and advanced indicating tool for cryptocurrency trading. And ever since, it remains in its advantageous position among different indicators.

This special indicator allows users to get information about the profitable or losing net state of the asset. It is made possible by evaluating the variation between the asset's initial price at the time it was purchased for the first time and its today price. Therefore, the variation demonstrates that there is a current state of an asset's net loss or profit. Besides, the NUPL indicator helps to identify the state of the whole network. The analysis will likewise reveal the network's state of net loss or profit.

NUPL Signals

The NUPL indicator works very well regarding Bitcoin in determining the top and bottom values of the crypto trading market. When you see values above zero, that means that, in general, the network is profitable. And the other way around, the value below zero indicates the general net loss of the network. Therefore, the more the NUPL value differs from zero, the higher are the chances of the market ups and downs.

Remarkably, the NUPL indicator is convenient for entry point timing when it comes to cryptocurrency trading. The blue indications signalize the probable upcoming peak. Thus, it is valuable information for making a profit. Red indications inform us about the upcoming re-entry.

Aroon Indicator

Aroon Indicator is a technical indicator created by Tushar Chande in 1995. The main idea behind the indicator's development was to note short-term changes in the trend. Remarkably, the name of the trend, Aroon, refers to the Sanskrit language and can be translated as "dawn's early light," which is quite symbolic.

This proven indicator allows one to measure the current trend's strength and get informed if the overall trading situation is secure or not. Besides, it demonstrates another important fact, whether the price hits new high or low points during the calculation period. The Aroon indicator can also help to learn when the new trend is likely to begin.

Generally, values above zero mark the presence of the "up" trend. And on the contrary, the indicator's value below zero highlights the "down" trend. Therefore, traders mostly pay attention to any crossovers of the zero point that signalize the upcoming market changes. Moreover, any huge moves, such as 50 points above or below zero, are always eye-catching as they signal significant price changes.

Aroon Indicator Signals

The indicator consists of two lines named an Aroon-up line and an Aroon-down line. Any trend predictions are based on those lines crossing. For instance, if the Aroon-up line crosses the Aroon-down line bottom-up, it indicates the possible upcoming trend switch.

The lines move between values of zero and 100. Let's say the Aroon-up line reaches 100 points and remains at that level for a while, along with the Aroon-down line keeping close to almost zero levels; it confirms the uptrend. However, when the Aroon-down line crosses the Aroon-up line from bottom to top and remains at the level of 100 value, this indicates the obvious downtrend.

It is a great short-term tool that, however, does not work properly in the long timeframes.

Stochastic RSI (StochRSI)

Most traders are familiar with both RSI and Stochastic oscillators. Nevertheless, not all of them know or use the rare and valuable Stochastic RSI indicator, also known as StochRSI, among professionals.

This great tool combines the Stochastic oscillator formula with RSI values. It enables accurate information about the current RSI value, so whether it is oversold or overbought. The indicator values usually vary from zero to one or, in some cases, from zero to a hundred.

The StochRSI was created by Tushar Chande and Stanley Kroll and formed their book in 1994. They aimed to develop an indicator with improved sensitivity and a bigger number of signals than the existing technical indicators.

The indicator became an advantageous instrument considering momentum indicators and was vulnerable to specific security's historical performance and not just the common price analysis. Due to a large number of signals, the StochRSI Indicator, when used in combination with other technical indicators, delivers maximum benefit and the most accurate information to traders.

StochRSI Signals

Depending on different values, StochRSI signals have different meanings. The zero-point means that the RSI remains at the lowest level. A value of 1 or 100 means it reached its highest level in the timeframe of the chosen periods.

If the value drops below 0.20, the indicator considers something to be oversold. It means that the value of the RSI rate is trading at the low end of the range, and the short-term trend of the underlying security is close to turning up.

And the value above 0.80 of the indicator demonstrates the overbought situation when the RSI's potential reaches maximum height and signals a possible underlying security pullback. The overbought and oversold alerts do not necessarily lead to prices reverse. They inform traders of the RSI extreme peaks.

On top of identification of the overbuying and overselling terms, the index can be used for defining short-scale tendencies by means of oscillator's evaluation with a centerline at 0.50. As long as the value keeps above 0.50 point, the security is considered to be high, and the other way around, when the value is below 0.50.

Should You Use the Indicators?

To sum up, it is essential to note that trading requires certain knowledge and skills. Traders have to understand the market, its participants, conditions, trends, and assets in detail to succeed. Blindfolded trading is not the case.

The trading market is never stable, so it is vital to keep up with the changes and maintain and enhance the level of expertise constantly. Newly developed or existing advanced cryptocurrency trading indicators will certainly assist you in upgrading your experience.