📊 Quick Guide: Technical Indicators in Trading (and what they are for)

1️⃣ SAR (Parabolic)

What does it do? Indicates possible trend changes with points appearing above (sell) or below (buy) the price.

Useful for: identifying reversals and following strong trends.

2️⃣ Bollinger Bands (BOLL)

What does it do? Shows volatility:

Upper/Lower Band = Dynamic support/resistance.

Contraction = Possible breakout soon.

Useful for: Trading ranges (bounces) or breakouts.

3️⃣ Moving Averages (MA)

SMA (Simple): Smooths the price to see trends (e.g., SMA 200 as support/resistance).

EMA (Exponential): Reacts faster (ideal for short term).

Useful for: Confirming trends and crosses (e.g., "Golden Cross" EMA 50 > 200).

4️⃣ RSI (Relative Strength Index)

What does it do? Measures overbought (>70) or oversold (<30).

Useful for: Anticipating corrections (but be careful in strong trends!).

5️⃣ KDJ

What does it do? Combination of %K (price speed), %D (average of %K), and %J (signal).

Useful for: Entries in overbought/sold (similar to RSI but more sensitive).

6️⃣ Volume (VOL)

What does it do? Shows the amount of assets traded.

Useful for: Confirming breakouts (if the price rises with high volume, it's more valid).

7️⃣ OBV (On-Balance Volume)

What does it do? Relates volume to price: if it rises, accumulation; if it falls, distribution.

Useful for: Detecting divergences (e.g., price rises but OBV falls = possible reversal).

8️⃣ StochRSI

What does it do? Applies the RSI to a stochastic oscillator (more sensitive).

Useful for: Timing in sideways markets (ranges).

🎯 How to use them together?

Example:

Uptrend: MA 50 > MA 200 + RSI > 50.

Entry: wait for SAR in the buying zone + high volume.

⚠️ Remember!

No indicator is infallible (use them together).

Backtest before risking real capital.