5 Must Know Indicators for Smarter Trading!
Moving Average (MA)
Identify trends and smooth out price data.
| How to Use |
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Use a Simple Moving Average (SMA) for long-term trends (e.g. 50-day or 200-day SMA). |
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Use an Exponential Moving Average (EMA) for short-term trends (e.g. 9-day or 21-day EMA). |
| Treat moving averages as dynamic support/resistance levels. |
Relative Strength Index (RSI)
Measure momentum and spot overbought/oversold conditions.
| How to Use |
| Values above 70 indicate overbought: below 30 indicate oversold. |
| Divergences (e.g. prices rises while RSI falls) hint at reversals. |
| Combine RSI with other tools for confirmation. |
Bollinger Bands
Gauge price volatility and reversal zones.
| How to Use |
| Upper band touches signal potential overbought: lower band touches suggest oversold. |
| "Squeezes" (bands, narrowing) indicate upcoming volatility. |
| Combine with trend analysis for breakout setups. |
MACD (Moving Average Convergence Divergence)
Track momentum and trend direction.
| How to Use |
| Crossovers: MACD line above signal line is bullish: below is bearish. |
| Histogram shows momentum strength (larger bars=stronger trends). |
| Use in trending markets for entry/exit confirmation. |
Bonus
Use indicators alongside price action and other tools to reduce false signals. No single indicator ensures success - diversify your approach and stay disciplined!