1. Relative Strength Index (RSI)
Function: Assesses whether the currency is in 'overbought' or 'oversold' condition.
Reading:
Above 70 = overbought (price may fall).
Below 30 = oversold (price may rise).
Use: To determine the right time to sell or buy.
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2. MACD Indicator (Moving Average Convergence Divergence)
Function: Reveals changes in trend (up/down).
Reading:
If the fast line crosses the slow line from below = buy signal.
If it crosses from above = sell signal.
Use: To confirm market direction.
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3. Trading Volume
Function: Measures the number of currencies traded over a specific period.
Significance:
High volume = confirmation of trend strength.
Low volume = weakness in trend or hesitation in the market.
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4. Bollinger Bands Indicator
Function: Measures price volatility.
Use:
If the price touches the upper limit = possibility of falling.
If the lower limit is touched = possibility of rising.
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5. Moving Averages
Types: Short (like 9 days), Long (like 50 or 200 days).
Use:
Short average crossing above the long = bullish signal.
Crossing below the long = bearish signal.
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Important Notes:
It is preferable to use multiple indicators together to confirm the decision.
Indicators do not guarantee profit but are a powerful analysis tool.
Would you like a practical explanation on a specific currency?
