Effective technical analysis indicators that help you make better trading decisions:

First: Moving Averages (MA)

🔸️Goal: To identify market direction and determine potential support and resistance levels.

Popular settings:

🔹️Short-term moving average: 50 days

🔹️Long-term moving average: 200 days

How to use:

🔹️Buy signal: When the 50-day moving average crosses above the 200-day moving average from below, known as the "golden cross" — usually considered the start of an upward trend.

🔹️Sell signal: When the 50-day moving average drops below the 200-day moving average, known as the "death cross," which may indicate the start of a downward trend.

🔸️Practical example:

If the market experiences a golden cross, it may be a positive signal to buy.

Second: Relative Strength Index (RSI)

🔸️Goal: To know whether the asset has been overbought or oversold.

🔹️Typical setting: 14-day period

🔸️How to use:

🔹️Buy signal: When the RSI drops below 30 (oversold area) and then rises back above it.

🔹️Sell signal: When the RSI rises above 70 (overbought area) and then falls below this level.

🔸️Practical example:

If the RSI reaches 25 and then rises to 35, it may be seen as a good opportunity to enter a buy trade.