4 Trading Indicators Every Trader Should Know 🕯
👨🏫 Technical analysis is not about predicting the future, but about stacking the odds in your favor. Price moves in patterns, and indicators help traders make sense of market trends, momentum, and potential reversals.
Blindly following indicators is a mistake. The key is understanding what they measure and when they work best. Some indicators shine in trending markets, while others work better in choppy conditions.
Here are four essential tools every trader should know and links to posts about them 👇
⏺ Relative Strength Index (RSI) – Measures momentum and identifies overbought and oversold conditions — LINK
⏺ Moving Average Convergence Divergence (MACD) – A trend-following indicator that shows trend strength and potential reversals — LINK
⏺ Bollinger Bands – Helps identify volatility and price extremes, very good for medium-term timeframes — LINK
⏺ Fibonacci Retracement Levels – A tool for identifying key support and resistance levels based on historical price movements — LINK
❗️ No indicator works 100% of the time. The best traders combine indicators with price action and market context to make informed decisions.
