Understand Crypto Buy and Sell Signals in 2021 – A Complete Guide

If you’ve made a start with trading and you’re ready to take it to the next level, we’re here to help with the best crypto signals. Here’s our guide on how to uncover and use the most influential cryptocurrency trading signals right now.

Volume - Crypto Buy And Sell Signals

Trading volume is the most fundamental indicator available. It shows the amount of trading activity during a specific time frame, represented by bars on the chart.

Due to its simplicity, volume is often overlooked. The pro traders don’t want you to know that volume presents a lot more information than initially meets the eye. The volume provides some of the cryptos buy and sell signals.

Here’s what you need to know about volume

  • The color of the volume bar doesn’t represent buying or selling. It just follows the color of the candle it represents. By default, if a candle closes above the open, the candle and volume bar will be green. If a candle closes below the open, then the candle and volume bar will be red.

    As a trader, you need to watch what the volume is telling you. The amount of volume in combination with price movement can show whether momentum is increasing or waning. Therefore, by watching volume, you can identify possible reversal points.

    • If the price moves downwards, look for increasing volume to support the movement, coupled with decreased volume during the buyback phases.
    • If the price is trending upwards, look for decreasing volume during pullbacks with high volume supporting the upward trend.
    • If you see multiple high-volume candles that don’t support the current trend, it could be a sign of an impending reversal.

News Affects Crypto Value

News, or changes in the macro-economy, are an essential cryptocurrency trading signal. News and what’s happening in the world are crucial when investing in every single different asset type. The financial industry feeds on the information.

Bad news can cause prices to drop, and good news can cause incredible price hikes. As a crypto-trader, you have to keep your finger on the pulse. If there is news to be seen, you’ll have to be on top of it. Bottom line – big news is a cryptocurrency trading signal, whether positive or negative.


Mathematical indicators can be used on the trading chart you’re using. They digest, analyze and churn out data in a readable form that traders worldwide use to beat the markets and make money.

That’s right – indicators can provide cryptocurrency trading signals.

Some of the best ones available. Divergence is one of the most popular ways to use indicators.


While price moves one way, other indicators can move in the opposite direction. Professional traders are always on the lookout for divergence because it can give key trading signals to support market analysis. Divergence is simply the separation of two lines or paths.

Here are the four types of divergence to look for:

  • Bullish Divergence – price prints a lower low, but a corresponding indicator prints a higher low.
  • Hidden bullish divergence – price prints a higher low, while the indicator prints a lower low.
  • Bearish divergence – price prints a higher high, but the corresponding indicator shows a lower high.
  • Hidden bearish divergence – price shows a lower high, but the corresponding indicator shows a higher high.

Support and resistance

Support and resistance are some of the more pedestrian technical analysis approaches, but it will always hold some belief in the trading community. It is a price level where buying interest is sufficiently strong to overcome selling pressure, providing price stability or upward movement. At a support level, the price is ‘supported’ from falling further by buyers. Support and resistance in crypto

Resistance is the opposite of support. A resistance level represents an area where selling pressure overcomes buying pressure, stalling, or preventing price advance.

Some traders take this as a strong cryptocurrency trading signal when strong support or resistance level is broken. Notice in the picture above how the price fell dramatically when Bitcoin broke a fundamental support level.

Crypto trading signals provide a beginner with an opportunity to win trades while learning about the crypto market. There are many paid signal providers in the market, and some of them charge you a very high fee. Furthermore, you can also follow a professional trader and copy their trading strategy using copy trading.