Best Trading Indicators for Trading in Crypto/Forex/Stock Market

Traders aim to make quick profits out of the exchanges, be it Crypto, Forex, or Share market. They are not interested in long term investments, and hence do not care much about the fundamentals of a company, or the vitals of the market/economy.

All they need to do is to understand the chart, identify the emerging patterns, and take a quick decision regarding initiation of a trade and then either booking profit or loss.

Different traders use various strategies of trading, the aim of almost all of them being – Minimize the loss, and Maximize the profit. In our demat account (or online platforms of various exchanges), we get the facility to use certain types of Trading Indicators. These indicators basically help us automate the process of trading to a large extent, give us vital clues at crucial times, help us make important trading decisions, and avoid us making human errors.

Various Trading Indicators perform their own unique functions. Which of these we eventually want to use in our trading setup is entirely our decision (of course you may choose to use none).

In this article, we aim to list down some of most significant ones of these Trading Indicators.

Note

It’s not essential to use Trading Indicators. Some expert traders just interpret the raw chart and make their decisions.

Table of Contents

• Trade Trend Indicators
• Support and Resistance Level Indicators

Trading Indicators

Trade Trend Indicators

The most important thing that we need to identify before entering a trade is the trend of the market. Whether it is an uptrend, a downtrend, or a sideways trend.

Thereafter, you also need to gauge the extent to which that trend will continue and when will you might see a trend reversal. Afterall, it is during trend reversals when traders either enter the market or exit them.

For doing all this manually, we need to keep in mind the emerging candlestick patterns, the trade volume, put/call ratio, etc. In the heat of the moment, we may miss out some vital clues and make a wrong call, especially if we are new to all this flood of data. Herein the Trade Trend indicators like ‘Super Trend’ come in handy.

Support and Resistance Level Indicators

Apart from gauging the trend of the market, we also need to know the prevailing support and resistance levels of the market on a given day. In laymen’s terms:

• Resistance level is the upper price level which the stock/crypto is finding hard to break. That is, as soon as the stock/crypto reaches that level, sellers start selling and the graph crashes again.
• Support level is the lower price level which the stock/crypto is finding hard to break. That is, as soon as the stock/crypto reaches that level, buyers start buying and the graph rises again.

Knowing the prevailing support and resistance levels is essential, as it gives us a fair idea of trend reversal and when we should enter or exit the trade. Herein the Trade Trend indicators like ‘Pivot Points’ come in handy.

Pivot Points shows us multiple support and resistance levels in the chart itself (along with the Pivot line).

Note

If the market breaks the prevailing support and resistance levels, then new support and resistance levels will form. So, prevailing support and resistance levels do get broken now and then. However, they still provide a pretty good idea to the traders and help them make crucial decisions. Expert traders often calculate these resistance levels 1, 2, 3, …, and support levels 1, 2, 3 … on their own. But newbie traders should definitely take help of some indicator for this purpose.

Note

Intra-day traders and Scalpers should see the 1-minute and 5-minute candlestick chart for monitoring the price action of the stock or crypto.

Winding Up

We hope this article will be of immense help to newbie stock traders, whether you are into Intraday, Commodity trading, Forex, or Futures/Options. You can use these indicators for almost any index – be it Nifty Bank, Nifty 50, individual stocks, or Crypto-currencies. We can use multiple indicators at the same time.

However, do not rely on them blindly. Always double check – wait for confirmation before you trade. For example, if Super Trend is indicating that an uptrend is coming and you see a large green candle being formed, beware! Do not jump into trading so soon. Wait till you see another green candle that breaks the high made by the first green candle. Once you get this confirmation, you may start trading by putting a stop loss at the low of the first green candle.