🔵 1. RSI (Relative Strength Index) – Momentum Indicator
Measures: Speed and strength of price movements.
Range: 0 to 100
Key Levels:
Above 70 = Overbought (possible sell signal)
Below 30 = Oversold (possible buy signal)
Best For: Spotting reversals and momentum shifts.
🟣 2. MACD (Moving Average Convergence Divergence) – Trend & Momentum
Components: MACD Line, Signal Line, Histogram
Signals:
Bullish Crossover: MACD Line crosses above Signal Line
Bearish Crossover: MACD Line crosses below Signal Line
Best For: Trend confirmation and divergence analysis.
---
🟠 3. EMA (Exponential Moving Average) – Trend Indicator
Gives more weight to recent price data than a simple moving average.
Common EMAs: 9, 20, 50, 100, 200
Usage:
Price above EMA = Uptrend
Price below EMA = Downtrend
EMA Crossovers are often used for entry/exit signals.
🔴 4. Bollinger Bands – Volatility Indicator
Components: Upper Band, Lower Band, Middle SMA
Signals:
Price touching upper band = overbought
Price touching lower band = oversold
Band squeeze = low volatility (potential breakout ahead)
Best For: Volatility trading & breakout setups
🟡 5. Moving Averages (MA/SMA) – Basic Trend Direction
Simple Moving Average (SMA): Average price over a period.
Popular Settings: 50-day, 100-day, 200-day
🟢 6. Stochastic Oscillator – Overbought/Oversold Indicator
Range: 0 to 100
Key Levels:
Above 80 = Overbought
Below 20 = Oversold
⚪ 7. Fibonacci Retracement – Support & Resistance Tool
Levels: 23.6%, 38.2%, 50%, 61.8%, 78.6%
🟤 8. Volume Indicator – Strength of Price Move
Rising volume = strong move
Falling volume = weak or fakeout move Popular Volume Tools: On-Balance Volume (OBV), Volume Profile
🔶 9. ATR (Average True Range) – Volatility Measur
Helps: Set stop-loss and take-profit levels more accurately.
🧭 10. Ichimoku Cloud – All-in-One Indicator
Gives: Trend direction, support/resistance, and momentum
Best For: Advanced traders looking for a full-system approach
✅ Final Thoughts
No single indicator works perfectly all the time. The best traders combine multiple indicators to build strong confluence zones (e.g., RSI + EMA + Volume). Always backtest and use indicators according to your strategy and market conditions
