Trading Indicators

The Vibe: Simple chart tools that help spot when a crypto price might go up, down, or reverse—like traffic lights for trading decisions.

The Details: These are the most common indicators beginners see on TradingView or exchange charts:

  • Moving Average (MA / SMA / EMA): Shows the average price over a set period (e.g., 50-day MA). When price crosses above the MA, it’s often bullish; below is bearish. Popular for trend direction.
  • RSI (Relative Strength Index): Measures if a coin is “overbought” (>70) or “oversold” (<30) on a 0–100 scale. Helps spot potential reversals after big moves.
  • MACD (Moving Average Convergence Divergence): Shows momentum changes via two lines and a histogram. Crossovers and divergences signal buy/sell opportunities.
  • Bollinger Bands: A moving average with upper/lower bands based on volatility. Price touching the upper band = overbought; lower = oversold. Bands squeeze = upcoming big move.
  • Volume: Not an indicator but key—high volume confirms trends or breakouts; low volume means weak moves.

Pro Tip: Start with just Moving Averages + RSI on TradingView (free). Use default settings first (e.g., 50/200 MA, 14-period RSI). Combine 2–3 indicators max—too many cause confusion (“analysis paralysis”). Always confirm with price action and never trade solely on indicators—DYOR and use stop-losses.