Top 7 Trading Indicators Every Trader Should Know

Mastering key indicators can improve your ability to read market signals and make informed trading decisions. Here are seven essential tools every trader should know:

1. Relative Strength Index (RSI): Gauges momentum by showing whether a currency is overbought or oversold.
2. MACD (Moving Average Convergence Divergence): Detects trend direction and momentum shifts.
3. Bollinger Bands: Helps visualize market volatility and potential reversal zones.
4. Moving Averages (MA): Highlights trends by smoothing out price fluctuations over time.
5. Stochastic Oscillator: Compares a closing price to its price range over a period to spot turning points.
6. Fibonacci Retracement: Identifies possible support and resistance levels using mathematical ratios.
7. Volume: Confirms the strength of a trend by showing how much trading activity is behind a move.

Pro Tip: No single indicator is foolproof. Combine 2–3 indicators to validate signals and make more accurate decisions.

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