Basic Trading Indicators: MACD, RSI, MA & Volume
Technical indicators help traders analyze trends and momentum. Here's a concise breakdown of four essential tools:
1.
#MACD - Tracks trend momentum using EMAs (12 & 26 periods)
Signals:
- Bullish: MACD > Signal Line
- Bearish: MACD < Signal Line
- Divergence warns of trend weakness
2.
#RSI (0-100 Scale)
- Identifies overbought (70+) and oversold (30-) conditions
- Divergence hints at reversals
3.
#MovingAverages - SMA: Smooth trend lines (e.g., 7/25/99-day)
- EMA: Reacts faster to price changes
- Golden/Death Crosses signal major trend shifts
4.
#Volume - Confirms trend strength
- Spikes often precede breakouts/reversals
Pro Tip: Combine 2-3 indicators (e.g., MACD + RSI) for better accuracy.