5 Indicators Every Beginner Trader Should Know
You don’t need 20 indicators on your chart. Start with these 5:
🔹 1. RSI — Momentum
Shows whether an asset may be overbought or oversold.
• Above 70 → potentially overbought
• Below 30 → potentially oversold
🔹 2. MACD — Trend & Momentum
Useful for spotting changes in momentum.
MACD crossing above the signal line → bullish momentum may be increasing.
🔹 3. Moving Averages — Trend Direction
Try the 7, 25 & 99-day MAs.
Price above the averages can indicate bullish structure, while price below can indicate weakness.
🔹 4. Volume — Strength Behind the Move
A breakout with strong volume is generally more convincing than one with weak volume.
🔹 5. Open Interest — Futures Positioning
Rising OI = more futures positions are being opened.
Falling OI = positions are being closed.
Combine it with price and funding rate for better context.
Important: No single indicator can predict price. The real edge comes from combining indicators with price action, support/resistance and volume.
Follow if you're learning technical analysis.
What indicator should I explain next?
$BNB $BTC
You don’t need 20 indicators on your chart. Start with these 5:
🔹 1. RSI — Momentum
Shows whether an asset may be overbought or oversold.
• Above 70 → potentially overbought
• Below 30 → potentially oversold
🔹 2. MACD — Trend & Momentum
Useful for spotting changes in momentum.
MACD crossing above the signal line → bullish momentum may be increasing.
🔹 3. Moving Averages — Trend Direction
Try the 7, 25 & 99-day MAs.
Price above the averages can indicate bullish structure, while price below can indicate weakness.
🔹 4. Volume — Strength Behind the Move
A breakout with strong volume is generally more convincing than one with weak volume.
🔹 5. Open Interest — Futures Positioning
Rising OI = more futures positions are being opened.
Falling OI = positions are being closed.
Combine it with price and funding rate for better context.
Important: No single indicator can predict price. The real edge comes from combining indicators with price action, support/resistance and volume.
Follow if you're learning technical analysis.
What indicator should I explain next?
$BNB $BTC