1.Moving Averages (MA) : Its purpose is to identify trend direction & potential reversals.
Types : Simple Moving Average (SMA) : smooths price over time.
Exponential Moving Average (EMA) : reacts faster to recent price changes.
Eg : A 20 EMA crossing over a 50 EMA can signal a Bullish trend.
2. Relative Strength Index (RSI) :
Purpose is to measure momentum & identify overbought or oversold conditions.
Scale: 0 to 100. Above 70 is overbought. Below 30 = oversold.
3. On Balance Volume (OBV)
Purpose:to track volume flow to confirm price trends. Rising OBV with rising price = strong bullish trend.
I would use 3 complementary indicators - 1 trend, 1 momentum & 1 volume to avoid cluttering the chart.
Clarity beats complexity.
Always confirm signals with price action & broader market context.
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- glowziΒ·10-08TOPAwesome insights on indicators! [Great]1Report
- ZhongRenChunΒ·10-09fear and greed index, 52 week high/low are also very useful.LikeReport
- zumaΒ·10-09thx1Report