Moving averages
Used to identify trend direction and dynamic support or resistance levels.
Charting Basics · Lesson 6
Indicators: tools to support your analysis
Indicators help interpret price data, but they are not decision-makers. They should support structure, trend, and context — not replace them.
RSI
Measures strength and speed of price movement, often used for overbought or oversold conditions.
MACD
Tracks trend momentum and crossovers to highlight potential shifts in market direction.
What indicators actually do
Indicators are mathematical calculations based on price and volume. They simplify complex data into readable signals, but they lag behind price movement.
Support decision-making
Indicators help confirm what you already see in price structure and trend.
Lagging nature
Indicators react to price, not predict it. They can give delayed or false signals.
Too many indicators problem
Using too many indicators creates confusion. Clarity is more important than complexity.
Best practice
Use a small number of indicators that you understand well. Combine them with trend, structure, support/resistance, and volume for better decisions.
Common mistake
Beginners often rely entirely on indicators without understanding price behaviour. This leads to inconsistent results and overtrading.