RSI, MACD, moving averages, Bollinger Bands and volume—explained with educational examples, common failure modes and a clear separation between calculations and interpretation.
These five indicators form the foundation of most technical trading strategies. Master them and you have the toolkit to analyse any market.
RSI measures the speed and magnitude of recent price changes on a scale from 0 to 100. It tells you whether an asset is potentially overbought (above 70) or oversold (below 30) — helping you spot exhaustion points in a trend.
MACD shows the relationship between two exponential moving averages and a signal line. When the MACD line crosses above the signal line, it indicates bullish momentum. When it crosses below, bearish. The histogram shows how strong that momentum is.
Moving averages smooth out price data to reveal the underlying trend direction. The Simple Moving Average (SMA) weighs all data equally. The Exponential Moving Average (EMA) gives more weight to recent prices, making it more responsive. The 50 and 200-period MAs are the most widely watched levels in the market.
Bollinger Bands consist of a middle band (20-period SMA) and two outer bands set two standard deviations away. When bands are wide, volatility is high. When narrow (a "squeeze"), low volatility often precedes a sharp breakout move in either direction.
Volume measures how many units of an asset were traded in a period. Relative volume can add context to a price move, but it does not confirm that a move will continue or predict a reversal.
No indicator or combination is reliable by itself. Combining different measurements can add context, but false readings and losses remain possible.
TradeProview's Evidence Lab separates provider facts, disclosed calculations and AI interpretation. Use it to inspect indicators, write a virtual plan and review the process—not to follow a transaction instruction.