Technical Indicators April Effectiveness Test | Which Indicators Are Still Reliable in the News-Driven Market?

#Gate Plaza April Posting Challenge

In a market dominated by news sentiment, traditional technical indicators often fail. Reviewing the price movements on April 1-2, a retrospective review shows that three types of indicators remain effective.

Top 3 Effective Indicators

1. Volume Spike

When trading volume suddenly exceeds 1.5 times the 20-day average volume, it often signals an acceleration or reversal of the trend. On April 1, BTC volume surged past $71,500, followed by a 2.3% increase.

Usage: Breakout with high volume through resistance → follow; breakdown with high volume below support → exit.

2. Moving Average Deviation Rate (BIAS)

When the price diverges from the moving average too quickly, the probability of a return increases. On April 1, BTC’s closing price deviation from EMA20 reached 4.2%, exceeding the 3% warning line, leading to a slight correction the next day.

Usage: Reduce position when deviation >5%; increase position when < -3%.

3. ATR True Volatility

ATR increased from 1200 on April 1 to the current 1850, a 55% rise in volatility. Positions should be scaled down proportionally.

Usage: When ATR doubles, cut positions in half.

Indicators That Fail

· RSI (Overbought/Oversold oscillates repeatedly and dulls)
· Bollinger Bands (Upper and lower bands are repeatedly broken)

April trading emphasizes trading volume, with less focus on oscillation indicators.