Popular Indicators
Analyze market trends, identify potential trading opportunities, and make informed trading decisions. Below is a list of the most popular indicators used to get an edge over the market.
Trend
Trend Indicators identify the Strength and direction of a trend based on past price-data (lagging). Analyzing past market behavior and predicting future trends.
ADX (Average Direction Moving Index)
Kijun-Sen+
Moving Averages (EMA / SMA)
Parabolic SAR (leading)
Ichimoku Cloud
Superichi
ZLSMA
TRAMA
Momentum
Oscillators measure relative strength of recent price moves with value between 0 and 100.
Oscillators work well in Ranging Markets but lead to whipsaws when markets are trending
Volume
Volume Indicators measure the strength of a price move by using the information of trading volume
Chaikin Oscillator
OBV On Balance Volume
Rate of Change
VWAP
Volatility
Measure the rate of price- changes regardless of their direction, rise when market fast and fall when slow
ATR Average True Range
Bollinger Bands (leading)
Standard Deviation
Relative Volume
Donchian Channel
Keltner Channel
TTM Squeeze
Chart Studies
Technical analysis is a method of evaluating financial assets using charts and indicators to identify trends and predict future price movements. It is used by traders and investors to make informed decisions about buying and selling financial assets.
Measure the rate of price- changes regardless of their direction, rise when market fast and fall when slow
Liquidity Swings
Fluid Trades
Trend Lines
Support & Resistance
Fibonacci Lines
Below is a list of all indicators including Youtube vidoes on how the work and different strategies for each of the indicators.
Combining trading indicators
Separating Professional traders from amateurs
- Know which indicators belong to which category
- Combine indicators in a meaningful way
- better trading decisions
#1 Mistake – Using different indicators which belong to the same indicator class
#2 Mistake – Only using trend indicators. You’ll easily end up giving too much weight to the information provided by the indicators and you can miss other important things|
Trade signals aren’t stronger if several indicators point in the same direction
The best strategy with multiple indicators combine indicators that show different type of information
#3 Mistake – Using over 3 indicators, less is more
Do not filter out all losing trades with the use of indicators, it will filter winning ones as well
Good use of indicators
1 Trend + momentum
Moving average (trend) + Stochastic 200 EMA (confirmation or entry point)
When price is above 200EMA long trade stochastic is
2 Trend + Volume
OBV with moving average
Add long term moving average to the OBV (on-balance-volume) To help determine the direction of the trend – as its crossover offer and excellent outlook on the prevailing trend on the market.
When the OBV is above the moving average, search for long positions, in the direction of the main trend
When the OBV is below the moving average, take only short positions
3. Momentum + Volatility
Use Bollinger bands and the RSI indicator to search for divergence when the Bollinger bands are flat
Use of indicators is based on trading strategy based on trading style and risk tolerance.
If you seek long-term moves with large profits, then you may focus on trend-following strategy and therefore utilize trend-following indicators such as moving average.
(LongTerm Trader: Trend Indicators)
If you are interested in small moves with frequent small gains, you might be more interested in a strategy based on volatility
(Short-Term Trader: Volatility & Momentum Indicators)
Each trader has a unique style, temperament, risk tolerance and personality
It is up to YOU to learn about the variety of technical analysis tools, research how they perform according to YOUR individual needs and develop a strategy based on the results
Leading vs lagging Indicators
The best leading indicators for crypto trading are those that give signals before a price movement occurs, providing traders with an early indication of potential market changes. Here are some of the best leading indicators for crypto trading:
Moving Average Convergence Divergence (MACD)
Relative Strength Index (RSI)
Stochastic Oscillator
Ichimoku Cloud
On the other hand, the best lagging indicators for crypto trading are those that provide signals after a price movement has already occurred, allowing traders to confirm the trend and make informed trading decisions. Here are some of the best lagging indicators for crypto trading:
Moving Averages
Bollinger Bands
Fibonacci Retracement
Parabolic SAR
It’s important to note that no single indicator should be used in isolation when trading cryptocurrencies. Instead, traders should look to use a combination of leading and lagging indicators to confirm trends, identify potential entry and exit points, and manage risk. Additionally, traders should always conduct thorough research and analysis before making any trading decisions.
Leading Indicators
Leading indicators
A leading indicator is a technical indicator that uses past price data to forecast future price movements in the market. Leading indicators allow traders to anticipate future price movements and therefore, traders are able to enter trades potentially at the start of the move. The downside to leading indicators is that traders are anticipating a move before it actually happens and the market could move in the opposite direction. As a result, it isn’t uncommon to witness false breakouts, or, signs of a trend reversal that just land up being minor retracements.
Lagging Indicators
Lagging indicators use past price data to provide entry and exit signals, while leading indicators provide traders with an indication of future price movements, while also using past price data. When faced with the dilemma of leading vs lagging indicators, which should traders choose? The answer to this question ultimately comes down to individual preference after understanding the advantages and limitations of each.
WHAT’S THE DIFFERENCE BETWEEN LAGGING AND LEADING INDICATORS?
Lagging indictors
Lagging indicators are tools used by traders to analyse the market using an average of previous price action data. Lagging indicators, as the name implies, lag the market. This entails that traders can witness a move before the indicator confirms it – meaning that the trader could lose out on a number of pips at the start of the move. Many consider this as a necessary cost in order to confirm see if the move gathers momentum. Others view this as a lost opportunity as traders forgo getting into a trade at the very start of a move
Combining SMA Crossover and RSI Indicators for Better Trading Insights
Introduction: Technical analysis is a favored method used by traders for financial market analysis and forecasting. Two commonly used technical indicators are the Simple Moving Average (SMA) crossover and the Relative Strength Index (RSI). While these indicators are powerful individually, combining them can offer traders even better insights into market trends and potential trading opportunities.
Understanding SMA Crossover and RSI Indicators
Subheadline 1: The SMA Crossover Indicator The SMA crossover indicator identifies the direction of a trend by analyzing two moving averages. When the shorter-term moving average crosses above the longer-term moving average, it signals a bullish trend, and vice versa.
Subheadline 2: The RSI Indicator The RSI indicator measures the speed and change of price movements and ranges from 0 to 100. It is usually considered overbought when above 70 and oversold when below 30.