What technical indicators do you use? If you have not tried these tools yet, it is time to introduce them in your trading practices and take the most advantage of this opportunity. Certainly, for a beginner, it may seem a bit challenging to make a choice from thousands of options available. That is why we recommend you select from the list created by our experts.
So, our experts have analyzed the entire range of indicators offered by today’s platforms and services and have singled out 7 indicators for day trading, which you can safely implement in your strategy:
- Moving averages. It reflects the momentum of a trend and its direction. It includes two lines: the first one indicates a moving average, the second one ― a moving signal.
- Relative strength. It will provide you with information about the recent price gains and losses, momentum and strength of a trend, overbought and oversold levels.
- Volume. It’s aimed at measuring the risk by analyzing the positive and negative flows of volume.
- Stochastic Oscillator. This tool is designed to compare the current rate of stocks or foreign currency to their price fluctuations over a recent time in order to determine whether it is rising or declining.
- Average directional index. It shows the direction, strength, and momentum of a current trend.
- Aroon oscillator. It helps to find out whether the security chosen is currently following the trend or not, in other words, it shows whether its price has performed new highs or lows within a period specified. Besides, you can utilize it to check whether there is any upcoming trend.
- Accumulation/distribution line. It analyzes the selling and purchasing activities in terms of the asset chosen and determines whether the current trend is upward or downward.
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But how to get the best results out of the instruments mentioned?
- Perform deep research on the indicators specified above to learn more about them. Create your top list.
- Limit their number. No need to use more than one indicator of the same type.
- Do not try to turn on all the functions of the chart simultaneously, especially if you are a beginner. If you do not use some feature, switch it off. Keep your workspace clean.
- Certainly, you can combine several tools. We recommend you start by adding indicators reflecting the trend, momentum, volatility. Watch them as a single set.
- Do not give indicators too much weight. Take into consideration the charts, expert forecasts, news, signals, and other sources of information as well.
In sum, if you are searching for an additional source of information about the market, the indicators mentioned above are an optimal choice. Make use of them to make your trading decisions more motivated and well-reasoned.
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