Investors and traders have been using technical indicators to help determine high-probability events for years. There are hundreds of different indicators available for the public. Most of them represent same data by different visual display, so it is easy for the new users to get confused and use them ineffectively. This article will summarize how to use them, avoid being lost between multiple indicators and keep your charts clean. Note that this article is aimed mainly at the users who are trading manual, but it is a good read for users of Market Indicator as well.

What are the leading indicators in trading ?

Let’s start by stating that indicators do not represent BUY OR SELL signals. All of them must be interpreted by a trader, who in fact is the one that has to make the decision what direction to take.  The trading world is constantly growing and there are newer and newer indicators every day, but the most and used ones are :

  • Moving average convergence divergence (MACD) – used to identify moving averages that show the beginning of a new trend.
  • Relative strength index (RSI) measures how quickly traders bidding for sale or buy price 
  • Dillinger Bands are used for precise entry and exit points of the position
  • Pivot points are used to predict the sessions support and resistance levels. 

How are different indicators used in trading ?

Well this is the most important question. Every trader, every hedge fund manager has different answer to this. Unique combinations between them are limitless and basically it is up to the personal trading style of that person (company) . Here is the time when we should note that our algorithm and indicator combinations took fifteen years to get to where they are today. If you don’t have the time or simply don’t want to learn about using indicators – try our app for FREE and see for yourself. You can visit the log section to check out previous records of the app.