I'm developing my strategy for trend trading and I'm trying to figure out what are the best indicators to catch a trend. Currently now I'm using MFI, but I doubt that it is suitable for cryptocurrency trading, so i will appreciate it if you give me a hint. Thank you in advance!
For trend trading in cryptocurrencies, I would recommend the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI), alongside your Money Flow Index (MFI). MACD helps identify momentum and trend direction, while RSI indicates overbought or oversold conditions. Also consider adding Exponential Moving Averages (EMAs). They can help you understand trend strength by smoothing price fluctuations. This combination offers a solid framework for capturing trends, which is essential in the fast-paced crypto markets. Balancing these indicators can improve your decision-making, while providing insights beyond what MFI alone can provide.
If you would like to discuss this further, you can contact me via my Discord:
https://discord.gg/dCvaBZWNcG