#TradingTools101

#TradingTools101 Technical indicators are essential for making more informed trading decisions. Among my favorites: the RSI to detect oversold or overbought areas, moving averages (MA) to track the general trend, and the MACD to validate entry and exit points.

I prioritize the combination of these tools to refine my signals. For example, an RSI below 30 (oversold zone), accompanied by a bullish MACD crossover and a price close to the 50-day moving average, constitutes a strong buy signal for me. Conversely, a bearish MACD crossover with an RSI above 70 prompts me to be cautious and often to reduce my positions.

The real secret to success in trading lies in the logic of associating indicators, rather than relying on just one.