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The Different Types of Trading Indicators and How to Use Them

The popularity of trading in financial markets has increased dramatically in recent years, particularly as new sites and apps have made it easier than ever to trade online. This increase in popularity has also led to an explosion of different trading indicators that you can use to help you make the right trading decisions. To help you navigate this flood of information, we’ll be looking at some of the most common types of trading indicators and how you can use them to help you get better results from your own trading activities.

VSA (Volume Spread Analysis)

VSA is a tool for traders that helps analyze the volume behind a price movement. This type of analysis does not require sophisticated mathematics, but just requires three values: high, low, and close for every trading day since a trade's start date. The volatility between these three values will create traiding signals that traders use to determine trends.

Bollinger Bands

When looking at cryptocurrency trading, the most popular trend has been what’s known as a bull run. This is where market prices steadily rise over time, though sometimes there will be brief corrections or minor slumps. Bull runs can also be seen in other sectors like the housing market. 

There are many different types of trading indicators that investors use while they are traiding on various exchanges. Many different traders may choose to use various indicators depending on their skillset and desired outcome.

RSI (Relative Strength Index)

RSI is a popular indicator that uses the relationship between upward and downward movements in stock prices. Values above 70 indicate an overbought position, while values below 30 indicate an oversold position. With RSI, traders can tell at a glance whether they should be buying or selling stocks. 

These are all trading indicators, which are tools you can use to analyze information on cryptocurrency trade volumes, portfolio risk and asset values.

MACD (Moving Average Convergence Divergence)

Some traders use MACD (Moving Average Convergence Divergence) as a trading indicator, which is the best way to detect the trend. The MACD is the difference between two exponential moving averages (EMAs) on a chart over different time periods. It helps to identify whether the momentum of a particular asset is increasing or decreasing by plotting two EMAs with different time periods on a chart.

Stochastic Oscillator

Cryptocurrency trading signals are becoming more popular with online traiding sites like Coinbase, NASDAQ, NYSE and Yem Cryptocurrency. You can also get alerts or indicator through software or on your trading station.

Stochastic Oscillator

Support & Resistance Lines

Market movement and trading indicators, including support and resistance lines, can help traders make their trades. When they are used in conjunction with other traiding tools, they can also help you profit as a trader. On trading platfor like Fidelity or Warrior, there are free traiding opportunities for those starting out on a certain monthly income. Other helpful tools include interactive charts that provide your own traiding station to access any traiding site.