📊 The best indicators for traders (especially beginners)
If you're just starting out in trading, the problem isn't with the strategy…
The problem is that you don't know how to use the indicators correctly.
The image in front of you contains the 7 best indicators you can build a complete trading system on:
━━━━━━━━━━━━━━━
1️⃣ Bollinger Bands
It defines the volatility areas for you
When the price reaches the upper limit = probability of falling
When the price reaches the lower limit = probability of rising
━━━━━━━━━━━━━━━
2️⃣ MACD
This indicator gives you buy and sell signals
When the lines cross upward = Buy
When it crosses downward = sell
━━━━━━━━━━━━━━━
3️⃣ RSI
This tells you if the price is in a selling or buying saturation area
Above 70 = overbought (probability of falling)
Below 30 = oversold (probability of rising)
━━━━━━━━━━━━━━━
4️⃣ EMA 200
This is the most important indicator for knowing the overall trend
If the price is above it = uptrend
If the price is below = downtrend
━━━━━━━━━━━━━━━
5️⃣ EMA 50
The best place to set your stop loss
And the price usually bounces from it
━━━━━━━━━━━━━━━
6️⃣ EMA 9
It tells you the fast trend (short-term)
━━━━━━━━━━━━━━━
7️⃣ EMA 21
Best average for entry and exit
Crossover of 9 with 21 = strong entry signal
━━━━━━━━━━━━━━━
The best way to use indicators together:
Check the trend first with EMA 200
Wait for the price to correct at EMA 50 or Bollinger
Enter when the MACD gives a signal
Make sure the RSI is not overbought
Enter with the crossover of 9 and 21
This way you're entering a trade with a high probability of success 👍
━━━━━━━━━━━━━━━
A tip more important than any indicator:
Indicators are helpful tools…
But true success = capital management + patience + discipline.