In this post I will not talk about Classic Indicators such as RSI, MACD, Bollinger Bands, Volume, among others. I will tell you about other strong indicators that you have here at Binance in the Trading View window and how to use them.
1. SuperTrend: A trend indicator that provides clear buy and sell signals based on volatility and price. How to use:
Buy when the price closes above the SuperTrend line;
Sell when the price closes below.
2. Ichimoku Cloud: A comprehensive indicator covering trends, momentum, and support/resistance. How to use:
When the price is above the cloud: uptrend;
When below the cloud: downtrend;
The space between the cloud and the price can act as support or resistance;
The crossovers of the Tenkan and Kijun lines provide entry (Bullish: green crosses above red) and exit (Bearish: red crosses below green) signals.
3. OBV (On-Balance Volume): A cumulative volume indicator that measures buying and selling flow. How to use:
Divergences between price and OBV can signal reversals;
A rising OBV line indicates accumulation (buying) and a falling one indicates distribution (selling).
4. ADX (Average Directional Index) + DMI: Measures the strength of the trend. How to use:
If DM+ (blue) crosses above DM- (orange) + ADX is rising and above 20-25 it is a sign that the market is entering an uptrend;
When DM- is above DM+ + ADX is rising and above 20-25 it is a sign that the market is entering a downtrend;
Values above 25 indicate that there is a strong trend;
Values below 20 indicate a sideways market (consolidation);
If the ADX is low (below 20) and the DM+ and DM- are close together or crossing frequently, the market is likely in consolidation, and trading trends can be risky.
5. Stochastic RSI: This indicator is very useful for catching quick reversals because the combination of the RSI and the Stochastic Oscillator increases the indicator’s sensitivity to price changes. It is a popular tool among traders looking for quick entries in volatile markets. How to Use:
Buy when it is below 20 and the blue line crosses above the orange line;
Sell when it is above 80 and the blue line crosses below the orange line;
When the Stochastic RSI is between 20 and 80 and the blue and orange lines cross, the signal is not as clear. In this range, the Stochastic RSI is in a neutral zone, and crossovers can represent corrections within a trend or weaker signals.
6. Keltner Channels: Similar to Bollinger Bands, but uses ATR to calculate channel width. How to use:
When the price breaks the upper channel, it is a sign of an uptrend;
When the price breaks the lower channel, it is a sign of a downtrend.
All of these indicators are available here on Binance and are easy to read. Use them in combination with other indicators to confirm a trend.