With over 10 million monthly active users, TradingView has become the go-to place for traders to chart and analyse price markets (stock traders, crypto traders, commodity traders etc). With a fully interactive charting interface, TradingView gives you access to hundreds of indicators and tools that can help you make more informed trading decisions. TradingView’s popularity is largely due to it being home to a huge number of indicators for traders to use.
There are thousands of indicators on Tradingview and many are free to use. Some traders/developers create their own indicators and share it with the Tradingview community.
In this article, we will look at some of the most popular indicators to use in your technical analysis and discuss why they work so well for traders who use them regularly.
There is no single buy sell indicator on TradingView that does all the work for you, but, by combining several indicators together you can increase your win rate dramatically. It’s important to use multiple indicators to confirm signals, you should not rely on any single indicator for trading decisions. The MDX ALGO indicators were solely built around this premise.
Consider These Examples:
- A long-term trend indicator can be used in conjunction with a short-term countertrend buy-sell indicator to give you added confluence on a better entry point.
- A momentum indicator can be combined with a counter-momentum buy sell indicator so that if the momentum has been rising and then starts turning down, you won’t play a continuation trade on a reversing market.
- Using two-time frames (or more) as your main level of analysis will help you avoid getting caught offside at the top or bottom of false moves or whipsaws.
The team at MDX ALGO have combined all the best features from the indicators mentioned below into one, easy-to-use powerful indicator. MDX ALGO combines Exhaustion Points, Stochastic RSI, Relative Strength, Commodity Channel Index, MACD and ‘overbought’ & ‘oversold’ indications on potential reversal points. The MDX ALGO 3 and the MDX ALGO Oscillator 5 work together in confluence for accurate/precise call execution.
MACD stands for “Moving Average Convergence Divergence.” It is a trend-following momentum indicator that shows the relationship between two moving averages. The MACD is calculated by subtracting the 26-period exponential moving average from the 12-period exponential moving average.
The histogram displays a signal line above and below zero. A buy signal occurs when both signal lines are on top of each other, meaning there is no divergence or convergence in prices, suggesting upward price movement ahead. A sell signal happens when both signal lines are below each other, suggesting downward price movement ahead.
The Relative Strength Index is an indicator designed to represent the momentum of any given market. It calculates two main variants, velocity & time. This simple algorithm tracks price movements and will indicate whether a market is potentially either ‘overbought’ or ‘oversold’.
If the RSI line goes above 70, this indicates that a market may be becoming ‘overbought’ and could possibly start heading down in price. If it falls below 30, then it may be becoming ‘oversold’ and could be headed back up in price.
The default setting for RSI is 14 periods, but you can adjust this range from 2-100 periods if needed for more precise strategies (10-20 = monthly timeframe).
The Commodity Channel Index (CCI) is one of the most popular indicators on TradingView. The CCI is calculated by taking the difference between a stock or cryptocurrencies high and low, then dividing that value by the price range. This results in a number that is used to identify ‘overbought’ or ‘oversold’ conditions. When an asset is considered to be “overbought,” it means there has been too much-buying pressure and its price will likely come down at some point in the future. Meanwhile, an “oversold” asset may be undervalued on the market; therefore it could experience an increase in price once more investors discover its potential and decide to buy into it.
The indicator also serves as a measure of momentum: when prices move above or below their moving averages (MA), it shows which direction has more strength at any given time! You can use this information when deciding when to enter or exit trades too: if CCI crosses above MA then consider entering long positions because prices are trending higher but if CCI crosses below MA then consider entering short positions since prices will likely go lower from here on out!
The Stochastic RSI is very similar to the Relative Strength Index but the calculation puts more weight on the most recent price data. It’s basically just a more exponential version of the RSI. This is great for reversal & exhaustion strategies where you need a more precise entry/exit.
Parabolic SAR is a volatility indicator that aims to identify potential exhaustion & reversal points on traded stocks or cryptos. The indicator is based on the premise that prices tend to follow parabolic curves, either the price is exponentially rising or exponentially falling and eventually will fail in either direction.
The Parabolic SAR can be an extremely powerful buy-sell indicator when used in confluence with other momentum indicators.