A comparative study between RSI and MACD to predict opportunities in cryptocurrency market from 2020 to 2022

Abstract EN

This paper intends to study the best technical analysis tool to predict future prices movement on cryptocurrency market.

we have focused on two among the strongest technical analysis tools, the moving average convergence and divergence (MACD) and relative strength index (RSI).

for this purpose, we have used a backtest program to evaluate the profitability of the two technical trading strategies on ten cryptocurrencies.

the results show that the two indicators generate several buying and selling signals, which help the investors to take their investment decision.

however, the RSI was more accurate than the MACD in its signal.

the RSI has an important role to detect the overbought and oversold situations and help the investors to diagnostic the price whether is it undervalued, overvalued or suitable value.

but we cannot skip the important flexibility of the MACD to recognize robust trend and trend reversals.