I WISH I KNEW THESE INDICATORS SOONER... BEFORE LOSING TENS OF THOUSANDS $

1. RSI (Relative Strength Index) – Relative Strength Index

• Purpose: Measure price momentum (buying or selling is stronger).

• Scale: 0 – 100

👉🏼 Meaning:

• > 50: Buying pressure dominates

• < 50: Selling pressure dominates

• > 70: Overbought → prone to correction

• < 30: Oversold → prone to rebound

2. MACD (Moving Average Convergence Divergence) – Measures trend signals

• Includes: MACD line, Signal line, Histogram

👉🏼 Main meaning:

• MACD crosses above Signal line: Buy signal

• MACD crosses below Signal line: Sell signal

• Positive Histogram: Strong upward trend

• Negative Histogram: Strong downward trend

3. Volume – Trading volume

👉🏼 Meaning: Confirms the strength of the trend

How to compare Volume accurately:

+ Compared to the past:

• Volume increases significantly → Large funds entering.

• Volume decreases → Weak market, less interest.

+ Compared to price action:

• Price increases + Volume increases → Strong increase, reliable.

• Price increases + Volume decreases → Weak increase, prone to reversal.

• Price decreases + Volume increases → Strong selling pressure.

• Price decreases + Volume decreases → Weak selling, may be about to rebound.

+ At support/resistance levels:

• Large volume at support → May create a bottom.

• Large volume at resistance → May distribute, take profit.

• Breakout + large volume: Real breakout

• Breakout + weak volume: False breakout

4. MA (Moving Average) – Moving Average

• Common types: MA20, MA50, MA200

👉🏼Meaning:

• Price above MA: Upward trend

• Price below MA: Downward trend

• Short MA (MA20) crosses above Long MA (MA50): Golden Cross → Buy signal

• Short MA crosses below Long MA: Death Cross → Sell signal

👉🏼 This knowledge may seem simple, but it is extremely important and not everyone will tell you when you first enter the market!