1. RSI Indicator
2. MACD Indicator
3. TD9 Indicator
4. Bollinger Bands
The RSI indicator is an oscillator that reflects the relative strength between the upward trend and the downward trend.
RSI indicator near level 30: reflects an overbought condition.
RSI indicator near level 70: reflects an overbought condition.
RSI indicator near level 50: means that the market lacks a clear direction.
To draw an upward trend line on the indicator, you need to connect two or three or more peaks of the RSI indicator with higher peak points (HH).
On the other hand, the downward line is drawn by connecting three or more peaks with gradually declining points.
When the RSI indicator shows a movement opposite to the price movement, it may mean two things:
That the price momentum is weakening, and thus a correction may occur in either direction.
That the end of the trend is near.
Positive divergence (Bullish Divergence): occurs when the price forms a series of lower highs (LH), while the indicator forms horizontal higher points.
Negative divergence (Bearish Divergence): occurs when the price forms a series of higher highs, while the indicator records horizontal lower highs.
2. MACD Indicator:
The MACD measures convergence and divergence over time between two moving averages of the price of a given asset.
The MACD indicates the difference between the values of two moving averages with different calculation periods.
When the MACD line crosses the signal line from below to above and the MACD exceeds the signal line, the trend will be upward.
And when the crossover occurs from above to below and the MACD line crosses the signal line, the trend will be downward.
RSI + MACD:
The MACD and RSI indicators integrate excellently, both seeking to identify the emergence of an upward or downward trend early.
This is to alert the trader whether they should buy or sell in a particular position.
Therefore, analyzing only one indicator may not be sufficient.
MACD Summary:
The MACD indicator is a technical tool that measures the strength of price movement.
To confirm MACD signals, it is recommended to use it alongside another technical indicator.
Like the RSI indicator, or stochastic, or volume...
3. TD9 Indicator
The TD Sequential indicator indicates the approach of trend termination and reaching reversal points, and provides accurate signals regarding the timing of entering the market with a new trade or closing an existing trade.
Buy signal: If 9 consecutive bars are recorded where the closing price of each bar is lower than the closing price of the fourth previous bar.
Sell signal: If 9 consecutive bars are recorded where the closing price of each bar is higher than the closing price of the fourth previous bar.
4. Bollinger Bands
Bollinger Bands are among the most commonly used trading indicators.
It is used to compare changes in the price value of any asset to its relative price value over a period of time.
Bollinger Bands are also used in technical analysis as a complement to studying reversal patterns:
• W shape or double bottom, a shape that indicates a transition from a downward trend to an upward trend.
• M shape or double top, a shape that indicates a transition from an upward trend to a downward trend.
"Contraction" occurs when the bands come very close together, making them appear as if they are about to meet or overlap.
If the price approaches the upper band, this indicates a bullish breakout.
And if the price approaches the lower band, this indicates a bearish breakout.
The longer the period of contraction, the stronger the breakout will be.
And if the Bollinger Bands widen significantly, this may indicate that the price is breaking out of a consolidation state towards a new direction.