Trading in the crypto space, technical analysis and on-chain metrics are like left and right hands — both are indispensable. Only by combining these two tools can we truly see through the market.

Why are the indicator systems in the crypto world different from traditional finance? The biggest differences are: 24/7 operation, large price fluctuations, and fully transparent on-chain data. Because of this, we can't rely solely on classic technical indicators; signals from on-chain data often react to market movements earlier.

Let's start with the most basic — technical indicators.

**How to Use Technical Indicators**

Price, volume, and time — these three dimensions of data generate all technical indicators. Their core function is to identify trends, judge momentum, and spot overbought or oversold opportunities. Whether you're doing short-term trading or planning medium- to long-term positions, these indicators are essential knowledge.

**Moving Averages (MA) Are the Starting Point**

A moving average is calculated by summing the closing prices over a certain period and then dividing by the number of days, resulting in an average line. This concept sounds simple, but its practical effect is huge — it filters out short-term price noise, helping you see the true market trend.

Take BTC as an example. The 30-day moving average (30MA) sums the closing prices of the past 30 days and divides by 30, updating this calculation daily. This way, you can see whether BTC is trending up or down over a longer time frame.

**How to Set Parameters Correctly**

Parameters for moving averages are crucial. Different trading cycles and styles require completely different settings. Short-term traders prefer short cycles like 10-day or 20-day to quickly capture market changes. Medium- and long-term traders use longer cycles like 50-day, 100-day, or 200-day. In the 24/7 crypto market, there is much more flexibility in adjusting these parameters compared to traditional markets — and this is one of the advantages of crypto trading.