🔍 A simple explanation of the indicators we see on the trading screen – you need to understand before you enter a trade!

While I was following a currency like $XRP, I found these indicators below the chart, and many people see them but don’t understand them, so I thought I’d explain them simply:

📉 MACD (the red and green indicator)

This gives us an idea about the market direction (up or down). When the green column grows and stays above the yellow line, it means that the upward momentum is strong and there is still a chance for an increase.

But if the red starts to show and grow, it indicates a potential start of a decline.

📈 RSI (the one below shows 83.57)

This is the overbought/oversold indicator. If it goes above 70, the market is entering an overbought area (which means a correction might happen).

If it drops below 30, it indicates oversold (possible upward opportunity).

📊 OBV (which appears with trading volume)

This links price and trading volume. When the line goes up, and the price goes up with it, it confirms that the movement is strong and there’s money coming in.

🎯 Stochastic Indicator (K, D, and J)

This is a bit sensitive and shows whether there’s an opportunity to enter or exit in the short term. When the lines enter the area above 80, there’s likely overbought.

✅ Summary:

Each indicator alone is not enough, but when you see more than one confirming the same thing, you can make a decision with more confidence.

Now, as I see the RSI is very high, and the MACD is positive but close to the peak, I'm starting to think that a correction might happen soon, so if you're entering late, be cautious.