Some of the best indicators are the Average Directional Index (ADX), Relative Strength Index (RSI), Stochastic Oscillator, and Bollinger Bands. These indicators help us become familiar with trend entries and exits.
The ADX is a strength indicator that focuses on the strength of the trend, regardless of its direction. Values āāabove 25 indicate a strong trend, while values āābelow 20 indicate a weak trend.
The RSI is a momentum indicator that indicates overbought or oversold conditions. Traders use it to anticipate potential reversals.
The Stochastic Oscillator is a momentum indicator that compares the closing price of an asset to a range of its prices over a specific period. It can identify overbought or oversold conditions.
Bollinger Bands identify volatility levels and potential breakouts.
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