Using the right indicators is crucial when trading Binance Futures. Below are some of the best proven and effective indicators that are useful for both scalping and day trading:
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Best Binance Futures Trade Indicators:
1. Relative Strength Index (RSI)
Usage: To determine trends and overbought/oversold conditions.
Range: 0–100 (overbought above 70, oversold below 30)
Strategy: If RSI is below 30 and moving upwards, Buy; if RSI is above 70 and moving downwards, Sell.
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2. Exponential Moving Average (EMA) – 9/21/200 EMA
Usage: To follow trends and confirm entries/exits.
Strategy:
9 EMA > 21 EMA → Uptrend → Buy Signal
9 EMA < 21 EMA → Downtrend → Sell Signal
The 200 EMA helps determine major trends.
3. MACD (Moving Average Convergence Divergence)
Uses: To identify momentum and trend reversals.
Strategy: Buy if the MACD line is above the signal line, Sell if it is below.
4. Bollinger Bands
Usage: To identify volatility and breakouts.
Strategy:
If the price goes to the lower band and goes the opposite way → Buy
If the price goes to the upper band and goes the opposite → Sell
5. Volume Indicator
Usage: To confirm trends or breakouts.
Strategy: Any major movement, if it occurs on high volume, indicates that the trend is continuing.
6. Supertrend Indicator
Usage: To easily identify trends.
Strategy:
Green Supertrend → Buy
Red Supertrend → Sell
Also great for placing stop losses.
7. Stochastic RSI
Use: To provide more sensitive overbought/oversold signals than RSI.
Strategy:
Below 20 → Oversold → Buy
Above 80 → Overbought → Sell
Best Combination (Combo Strategy):
> Scalping Combo:
RSI (7)
MOTHER (9 & 21)
Volume
> Swing Combo:
MACD
Bollinger Bands
200 MOTHER
> Trend Confirmation Combo:
Supertrend
RSI
Volume
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Practical tips:
Use 2-3 indicators together, not all at once.
Use indicators as confirmation, not just trade based on them.
Make sure each indicator's signal matches the candlestick pattern.