Essential Trading Indicators

1. Moving Averages (MA)

What: Average price over a specific period
Use: Identify trends and support/resistance

• SMA: Simple Moving Average
• EMA: Exponential (gives more weight to recent prices)

Strategy: When price crosses above 50-day MA = bullish signal

2. RSI (Relative Strength Index)

What: Measures momentum (0-100 scale)
Use: Identify overbought/oversold conditions

• RSI > 70 = Overbought (potential sell)
• RSI < 30 = Oversold (potential buy)

3. MACD (Moving Average Convergence Divergence)

What: Shows relationship between two moving averages
Use: Spot trend changes

• MACD crosses above signal line = Buy
• MACD crosses below signal line = Sell

4. Bollinger Bands

What: Volatility bands around price
Use: Identify breakouts and reversals

• Price at upper band = Overbought
• Price at lower band = Oversold
• Band squeeze = Breakout coming

5. Volume

What: Number of coins traded
Use: Confirm price movements

• High volume + price increase = Strong trend
• Low volume + price increase = Weak trend

Combining Indicators

Never rely on one indicator alone:
- RSI + MACD = Momentum confirmation
- MA + Volume = Trend strength
- Bollinger Bands + RSI = Entry timing

Practice on TradingView to master these tools!