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📊 Chapter Six – Technical Indicators (John Murphy)

Technical indicators are mathematical tools that help traders analyze price movement and trading volume. In this chapter, John Murphy divides the indicators into three main types:

Trend-following indicators like moving averages and MACD, used to confirm the overall trend.

Momentum indicators like RSI and Stochastic, which show overbought or oversold conditions.

Volume indicators like On-Balance Volume, which illustrate the strength of the movement through trading volume.

Murphy warns that relying on a single indicator is a risky decision. It is always recommended to combine indicators of different types, such as using MACD to confirm the trend and RSI for timing entry and exit.

He also cautions against "cluttering indicators" on the chart, as this may confuse the trader instead of helping them.

The most important lesson from the chapter is: indicators are supportive tools, not a means of prediction, and should always be used with price analysis and technical areas.

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🔍 This information is not a recommendation, and the market always carries risks, think with your mind and make your decision with your hands.