📈 LEARN TO TRADE EVERY DAY – “The 4 Most Common Indicators – and How Most Traders Misuse Them”
🧠 “An indicator is only as useful as your ability to understand context.”
1. RSI (Relative Strength Index)
Purpose: Measures overbought or oversold conditions
Misuse:
People enter just because RSI is “below 30” or “above 70”
✅ What to do instead: Combine RSI with market structure. A low RSI in a strong downtrend doesn’t mean reversal — it could mean momentum continuation.
2. MACD (Moving Average Convergence Divergence)
Purpose: Shows momentum shifts and trend strength
Misuse:
Traders buy at every crossover
✅ What to do instead: Use MACD crossovers as confirmation — not as the trigger. Watch divergence + higher timeframes for context.
3. Bollinger Bands
Purpose: Measures volatility and potential breakouts
Misuse:
“Price touched the band — it must reverse!”
✅ What to do instead: Wait for confirmation of reversal (candlestick pattern, support/resistance). Bands expanding = volatility incoming.
4. Volume
Purpose: Measures conviction behind price moves
Misuse:
Ignoring volume completely — or misreading it without structure
✅ What to do instead: High volume breakout from a consolidation = strength. High volume inside chop = confusion.
💡 THE CORE SKILL:
Indicators are tools — not answers.
They should support your setup, not replace your thinking.
When you understand market context, price action, and trend —
indicators start working like a compass.
When you rely on them blindly — they’re just noise.
📌 If this post helped simplify your chart,
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