✔️ Information reviewed and updated in December 2023 by Eduardo López
Today cryptocurrency trading has grown considerably, you can buy if you think the price of a cryptocurrency is going to go up, or sell if you think it is going to go down. Technical analysis indicators like smoothed repulsion are important tools that can help predict the movements of any cryptocurrency..
Many operators use them in order to make better decisions. Cryptocurrencies can be exchanged and operated like any other currency, and are considered as an alternative to traditional ones. In this article we show you everything you need to know about the Smoothed Repulsion Indicator.
➡✨Definition of the Smoothed Repulsion Indicator
The smoothed rejection or repulsion indicator is quite useful to add to charts as it it shows how high or low a particular market is, and can change with each candle.
It can get a bit confusing when you add it to your chart as it shares the basic rejection indicator and the rejection moving average with you, so it can be a bit difficult to visually interpret their meaning.
➡✨ What is Smoothed Repulsion for?
This indicator as its name says, smooths out the standard repulsion indicator and provides clear signals of the market trend and sentiment. It only consists of a single oscillating line.
In addition, allows traders to see the strength of buyers and sellers for a given security. The difference is found over the entire period for smoothed repulsion and normal repulsion. Only the current bar is used to calculate the buying and selling force.
It is more remarkable to compare it with the price and to be able to offer more important additional information about the feeling and confidence that sellers have about the markets.
➡✨How to use it?
The smoothed repulsion indicator is very easy to use because it shows an uptrend when it is above 0 and a trend below when it is below 0. Also, it indicates a trend reversal when it crosses above or below 0.
For this reason, it is considered to open long positions when it is above 0 and short positions when it is below 0.
If you are someone who likes to trade price reversals, then you can look for divergences with the smoothed repulsion indicator to see when an uptrend or downtrend loses momentum.
➡✨ Reasons to use it
The smoothed repulsion indicator is very useful for longer time periods, or when you want to use a higher period setting.
In addition, it is very good for exposing the general sentiment of a currency market that is usually in any time period with the default setting of 5.
Another point in its favor is that it gives reliable reversal signals when there is a clear divergence in the indicator.