Technical analysis is not just about drawing lines... technical indicators can be your secret weapon if used correctly.
Today, I’m sharing 3 indicators I use along with how to combine them for more accurate entries and smarter exits:
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1. RSI – Relative Strength Index
Its role: measures whether the market is in a state of overbought or oversold.
Above 70 = potential correction (overbought).
Below 30 = opportunity for upward movement (oversold).
How do I use it? I don’t enter a trade based solely on it, but if I see RSI below 30 and the price at support, I enter a buy cautiously.
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2. MACD – Moving Average Convergence Divergence
Its role: reveals trend changes.
Strong signal: when the fast line crosses the slow line upwards = buy entry.
But! It’s best if it follows a breakout of resistance or confirmation of the trend.
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3. Bollinger Bands – Price Volatility
Its role: indicates when the market is "calm" and when it’s "exploding".
When the price touches the upper band = potential correction.
When it touches the lower band = potential rebound.
The real treasure: when the bands tighten significantly = the market is preparing for a strong move.
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How do I combine them?
Example of a strong trade:
Price at support.
RSI below 30.
MACD crossing upwards.
Bollinger Bands are tight and starting to expand.
Here, there’s a high likelihood of a rebound + the beginning of a new trend.
If you combine them correctly, you can enhance your decisions and reduce your losses.
Follow me because tomorrow I will post real examples of strong trades where I used these indicators!🔥
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