#TradingTools101 Let's break it down, explaining each tool and then how to combine them to operate more accurately on Binance or any other exchange:

📊 Technical Indicators

1. RSI (Relative Strength Index)

What it is: Shows if an asset is overbought (above 70) or oversold (below 30).

How to use:

RSI > 70 = possible reversal from up to down (sell).

RSI < 30 = possible reversal from down to up (buy).

2. MACD (Moving Average Convergence Divergence)

What it is: Shows the direction of the trend and possible entry/exit points.

How to use:

When the MACD line crosses above the signal line → buy.

When it crosses below → sell.

The histogram helps visualize the strength of the movement.

3. Moving Averages (MA or EMA)

What it is: Trend indicators based on the average price.

Simple MA (SMA): arithmetic average of prices.

EMA (Exponential): gives more weight to recent prices.

How to use:

Price above the average → uptrend.

Price below → downtrend.

Crossing averages (e.g., EMA 9 crossing above EMA 21) signals entry.

🧠 How to combine for more precision

📌 Basic strategy (example):

Confirm the trend with moving averages

If EMA 9 > EMA 21 → uptrend.

Confirm momentum with RSI

RSI between 40 and 60 → balanced market, good time to wait for confirmation.

RSI < 30 (in uptrend) = good entry opportunity.

Confirm entry with MACD

MACD crossing upward confirms the buy signal.