Technical Analysis: Essential Tools for Traders

[Sr.Necro369]

I would like to know about technical indicators such as RSI, moving averages and candlestick patterns. How these tools can help me make informed decisions in operations.

Thanks

 

[Fin_Trader]

A set of these indicators can really help in finding more accurate market entries and confirming signals. For example, moving averages will help you identify a trend, and RSI and candlestick patterns will help you identify moments when a trend may weaken or reverse. This allows you to choose the most profitable entry or exit points. You can also determine the end of rollbacks, when, for example, during an uptrend, the price approaches the moving average during a downward rollback, RSI at this moment shows oversold and at the same time a candlestick reversal pattern has formed (for example, engulfing, hammer or doji), which with a high probability may indicate the end of the rollback.