In trading, indicators are used to analyze the market and make decisions about buying or selling assets. Here are some basic indicators and how to work with them:
Moving Average is an indicator that shows the average price value over a certain period of time. To work with this indicator, you can use the following approach: if the price is above the moving average, it can be a buy signal, and if the price is below the moving average, it can be a sell signal.
Oscillators are indicators that measure the relative strength of an asset in the market. For example, RSI (Relative Strength Index) can be used to determine whether an asset is overbought or oversold. When the RSI reaches the 70 level, it could be a sell signal, and when the RSI drops to the 30 level, it could be a buy signal.
MACD (Moving Average Convergence Divergence) is an indicator that uses two moving averages to determine the strength of the trend and momentum in the market. If the fast moving average crosses below the slow moving average, it could be a sell signal. If the fast moving average crosses above the slow moving average, it could be a buy signal.
The volume indicator is an indicator that shows the trading volume in the market. If the price rises and trading volume rises along with it, this could be a buy signal. If the price falls and trading volume decreases, this could be a signal to sell.
It is important to understand that each indicator can give false signals, so to make a decision to buy or sell assets, you need to use several indicators and analyze them together. You also need to consider other factors such as news and events that may affect the market.
