### Top 5 Trading Signal Types
1. **RSI Divergence**
- **What it shows**: Momentum shifts when price makes new highs/lows but RSI doesn't.
- **Use**: Bullish (price low + RSI higher low = potential reversal up). Bearish (price high + RSI lower high = potential reversal down).
- *Best for: Swing trading, confirming reversals.*
2. **Moving Average Crossover**
- **Common Pair**: 50-day & 200-day EMAs.
- **Signal**: Golden Cross (50 crosses above 200 = bullish). Death Cross (50 crosses below 200 = bearish).
- *Best for: Trend-following in equities/crypto.*
3. **MACD Histogram Flip**
- **What it shows**: Momentum change when histogram bars cross zero.
- **Signal**: Green bars above zero → bullish momentum. Red bars below zero → bearish.
- *Best for: Intraday to daily trends.*
4. **Support/Resistance Breakouts**
- **Key Signal**: Price closes above resistance (bullish) or below support (bearish) with volume surge.
- **Critical**: Requires confirmation (e.g., 3% break or 2 consecutive closes beyond level).
- *Best for: All timeframes, volatile assets.*
5. **Fundamental Catalysts**
- **Examples**: Earnings beats, Fed rate decisions, token burns, regulatory news.
- **Signal**: Unexpected positive/negative events causing volume + volatility spikes.
- *Best for: Event-driven trades (pre-news positioning).*
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### ⚠️ Critical Warnings
- **No signal is 100% accurate** – Always use stop-losses.
- **Backtest first**: Test strategies on historical data before live trading.
- **Volume Confirmation**: Signals without volume are high-risk.
- **Scam Alert**: Avoid paid "guaranteed signal" services (99% are predatory).
- **Regulatory Risk**: In Pakistan (SBP restrictions), ensure crypto/fx trading is compliant.
### Recommended Free Tools
- **Charting**: TradingView (RSI, MACD, MA backtesting)
- **Screener**: Finviz (stock fundamentals), CoinGecko (crypto metrics)
- **News**: Reuters/CoinDesk (real-time catalysts)