🔹 Top Technical Indicators: RSI, MACD, and Moving Averages
Indicators are powerful tools that help traders confirm trends, spot reversals, and measure momentum. While there are many indicators out there, let’s focus on three of the most popular and beginner-friendly ones.
🔸 1. RSI (Relative Strength Index)
Measures if an asset is overbought or oversold
Ranges from 0 to 100
RSI > 70 = overbought → may drop
RSI < 30 = oversold → may rise
📌 Use it to spot reversal zones or avoid chasing late entries.
🔸 2. MACD (Moving Average Convergence Divergence)
Shows momentum and trend direction
Composed of two lines (MACD line and Signal line)
A bullish signal = MACD crosses above Signal
A bearish signal = MACD crosses below Signal
📌 Helps you time entries and exits in trending markets.
🔸 3. Moving Averages (MA)
Smooths out price action
Helps identify the overall trend
Common types:
SMA (Simple MA)
EMA (Exponential MA) – reacts faster
Price above MA = uptrend
Price below MA = downtrend
📌 In Part 6, we’ll see how to combine indicators with support/resistance and candlestick patterns to build a simple trading strategy.
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