Technical Indicators for the Way of Money beacuse It is a mathematical pattern derived from historical data that is used by technical traders or investors to predict the direction of future price trends and make trading decisions. It creates a mathematical formula to obtain a series of data points from historical price, volume and open interest data.
There are 4 things we can see in every technical indicator, no matter how tempting it may seem, is clearly expressing one of four things or a combination of them:
- Trend
- Momentum
- Volatility
- Volume
Technical Indicators for the Way of Money
There are many technical indicators in the market that traders can use according to knowledge and convenience. Here we will take a look at some of the key indicators to watch in the stock market for ways to make money.
Technical Indicators Smart Money Concept (LuxAlgo)
One of my favorite indicators is Smart Money Concepts (LuxAlgo), which works in live markets. This is an all in one indicator, it seems to have, order blocks, which is a more sophisticated version of supply and demand, breaker blocks, mitigation blocks, flip zones, fair price gaps and liquidity grabs. The accuracy of this indicator is at 95%.
Smart Money Concept (LuxAlgo)
Technical Indicators MACD Indicator
The MACD technical is a momemtum indicator that gives investors entry points to buy and sell in the market. MACD is determined by subtracting the long-term exponential moving average from the short-term EMA. EMA is a type of moving average where current data gets more importance. However, the formula 12,26, 9 for MACD is MACD = 12 periods means moving average of last 12 bars EMA – 26 periods means moving average of last 26 bars EMA 9 periods means a moving average of the difference between the above two moving averages.
When the MACD line crosses the zero level in an upward direction. So it is positive, it indicates a bullish trend. MACD indicates a bearish trend when it crosses the zero line in the downward direction and turns negative. The farther the trend is from the zero line, the stronger.
MACD Market
RSI Indicator
The Relative Strength Index indicator specifically gives us overbought and oversold signals. The RSI moves between zero and 100. The Relative Strength Index is considered overbought when it is above 70 and oversold when it is below 30. RSI can also be used to identify the general trend.
General Settings for RSI
- Scalping and Intraday traders set the lower period range 9-11.
- Swing traders have set the medium period range at 14
- Positional traders have set the higher period in the range of 20-30.
Volume Indicator
The volume indicator is defined as the number of trades such as shares and contracts during a specific time period. Most technical analysts use this metric to understand market trends and learn more about trading decisions or investment opportunities. There are two types of volume indicators positive volume indicators and negative volume indicators. After that we can decide on investment.
The Positive Volume indicator measures the increase in trading volume and checks if there has been an increase compared to the previous day.
The Negative Volume indicator measures the decrease in trading volume and checks if there is any decrease compared to the previous day.
Fibonacci Retracement
The Fibonacci indicator is used to predict further fluctuations in a share’s price and provide a benchmark for price movements: the level where the price is likely to rise, where it will predict its continuation or correction.
The most effective Fibonacci retracements are at 61.8% and 38.2% and the time frame is 30 mnt to 60 mnt. Experts believe that Fibonacci retracements can predict about 70% of market movements. Traders can draw support lines, identify resistance levels, place stop-loss orders and set target prices.
Bollinger Bands
Bollinger Bands is a very useful and popular technical analysis tool used by stock market traders to identify price volatility and potential buy or sell signals. This Bands appear on stock charts as three lines that move with price.
Bollinger Bands work best on the 20 day SMA. Once you place the indicator on the chart, you can easily find a range market. Traders are confident of an accuracy of 90%.
Moving Average
A technical indicator that investors and traders use to determine the direction of equities and indices. it is calculated by adding all the data points during a specific period and dividing the sum by the number of time periods. Which is called moving average, these are of two types SMA and EMA.
Simple Moving Average
SMA is simply the average price over a specified period. When moving averages are plotted repeatedly on chart bars, forming a line that moves along the chart as the average price changes. SMA is used to determine trend direction.
Exponential Moving Average
When moving average (MA) that places more weight and importance on the most recent data points is called an exponential moving average. The exponential moving average is also known to react more significantly to recent price changes than the simple moving average. When the 9-day EMA crosses above the 21-day EMA, it generates a bullish signal, indicating a potential buying opportunity.
These above mentioned all technical indicators for the way of money. But all are the not 100% work. Traders can use their own mind with risk management.
