10 Best Trading Indicators
In this blog, we're going to show you the 10 best trading indicators that actually work. Now, a very key point: you should always combine the usage of indicators with price action.
1.Volume Profile
Let's dive right into it, starting with volume profiles. Volume profiles tell you how much volume occurred at a specific price level. This is key because traditional volume tools tell you how much volume was traded throughout an entire day, which isn't as useful. There are different variants of the volume profile tool, but we're focusing on the anchored volume profile. To access it on the left, under forecasting and measurement tools, click anchored volume profile. Then, on your chart, click where you want the volume profile to be applied from, and you'll see it appear to the right. These bars show you how much trading volume occurred at each price level; the larger the bar, the more volume was traded at that level. This red line is the point of control, which is the level where the most trading volume occurred.
So, why is high trading volume important? The higher the trading volume at a level, the more interest buyers and sellers had at that level, leading to significant action through buying and selling. This means if the price comes back to these levels in the future, buyers and sellers might be interested again and take action, presenting trade entry and exit opportunities. Like any indicator, you need to combine it with price action methods, such as using key levels.
This area here is what you're currently using to identify a trade setup. You apply your anchored volume profile here at the start of the move, meaning the volume will only be calculated on the data after your anchor point. Your red line here is your point of control, where the most trading volume occurred. This tells you that this zone, which previously had very high volume, becomes of interest. If the price comes back to this zone, it presents long trade opportunities or a good exit target for short traders.
Here's where the magic happens: you want to pair areas of high volume with key levels. If you zoom out, notice these three very key reversal points that give you a key level, and they are also in the same area as your high volume zone, making this overall zone even higher quality. The higher the quality of the zone, the higher the possibility of price reacting to the zone if it comes back in the future. These bars represent another high volume area, and these reversal points represent a key level. The combination of the key level and high volume area makes this a high-quality zone to watch for trade opportunities.
You also have this large volume bar here, which is where you have multiple reversal points of price, giving you another high-quality zone to watch for trade opportunities. If you want to use the exact charting platform we are using, it's linked in the description below.
You can also apply the volume profile tool to an entire area
to help find the best key zones. Apply your anchored volume profile, and your
point of control here, and multiple reversal points give you a key zone. This
high volume bar and multiple reversal points give you another key zone. This
high volume bar and large reversal point give you another key zone. There is
also a variant of the volume profile known as the session volume profile, which
is used if you are a day trader or very low time frame trader. This is the
15-minute time frame. Notice how you see multiple separate volume profiles;
each one represents one trading session and auto-resets once the next trading
session begins. Using the session volume profile allows you to take quick
in-and-out day trading entries. If you want to learn more about lower time
frame trading, go to WISTrade.com. so
2. Stochastic Oscillator
Next, the stochastic oscillator. To access an indicator, click Indicators, type in "stochastic," select it, and it will appear below your chart. The stochastic oscillator is a momentum indicator used to identify overbought or oversold prices. The line above is 80, and the line below is 20. When the stochastic goes above 80, price is deemed overbought or expensive, signaling a possible trend change from an uptrend to a downtrend. When the stochastic goes below 20, price is deemed oversold or cheap, signaling a possible trend change from a downtrend to an uptrend. Remember to pair the overbought and oversold regions with trend change price action and not to use it on its own.
Another method of using the stochastic indicator is through the crossover method. The blue line here is known as the percentage K, and the orange line here is known as the percentage D. In an uptrend, the percentage K is above the percentage D (blue is above orange), but once the percentage D crosses below the percentage K (blue goes beneath orange), this signals momentum loss from the buyers and a possible trend change from an uptrend to a downtrend. In a downtrend, the percentage K is below the percentage D (blue is below orange), but once the percentage K crosses above the percentage D (blue goes above orange), this signals momentum loss from the sellers and a possible trend change from a downtrend to an uptrend. Again, you should pair the crossover method with other price action, such as using key levels.
This reversal point gives you a key resistance level. As price comes back up, you have shrinking candles, hanging candles, and a very long wick candle, all showing a reaction to the level. Once you have the stochastic crossover occur, this confirms the trend change from an uptrend to a downtrend, and it’s when you would look for a short entry point.
Another method to use the stochastic indicator is through divergence, which allows for higher quality reversal trade setups. This reversal point gives you a key support level. Price makes a lower low, whereas the stochastic makes a higher low, giving you a divergence trend line placed above. Once price broke the trend line and made a higher high, the trend change is confirmed, and it’s when you would look for long entries. Conversely, this reversal point gives you a key resistance level. Price makes a higher high, whereas the stochastic makes a lower high, giving you a divergence. Once price breaks the neckline and makes a lower low, you would look for short entries.
This is the Nvidia stock. These reversal points give you a
key support level. As price comes back down, it makes a lower low, whereas the
stochastic makes a higher low, giving you a divergence trend line placed above.
Once price broke the trend line and made a higher high, the trend change is
confirmed, and it’s when you would look for a long entry point using our entry
strategy.
3. Donan Channel
Next, Donchian Channels. The upper band represents the highest high of the previous period, the lower band represents the lowest low of the previous period, and the middle line shows you the average of the high and low of the previous period. When you see price consistently touching the bottom of the channel over and over again, this signals a strong moving downtrend and a bearish market, which means you want to look for short continuation trades. Once price breaks away in the opposite direction, this would be a good time to exit your short positions as a potential reversal is coming.
When you see price consistently touching the top of the channel over and over again, this signals a strong moving uptrend and a bullish market, which means you want to look for long continuation trades. Once price breaks away in the opposite direction, this would be a good time to exit your long positions as a potential reversal is coming.
The best way to use Donchian Channels is during sideways markets because the upper band acts as a form of resistance, presenting short trade opportunities, and the lower band acts as a form of support, presenting long trade opportunities. As always, don't use the Donchian Channel on its own; combine it with other price action methods such as support and resistance.
For example, a key support level with multiple touches where price comes back down and forms multiple long wick candles at the key support level presents a long trade opportunity. Price is also touching the lower Donchian Channel band, which represents an oversold region and an area of value within this current time period. This is also a double bottom reversal pattern. Once you have the break of the neckline and a higher high, you would look for a long entry point through the lower intraday time frames.
4. Anchored Vwap
Next, the Anchored VWAP. VWAP stands for Volume Weighted Average Price and is different from a traditional moving average as it takes volume into account. To access the Anchored VWAP, on your left under Projection, click Anchored VWAP. Then, on your chart, click where you want the VWAP to be applied from, and you'll see it overlaid on your chart. The middle line here is the VWAP line. When price is above the VWAP line, it signals a bull market and can also act as a form of support, presenting long trade opportunities. If price breaks through the VWAP, it can signal a possible trend change in the opposite direction. Price being below the VWAP line signals an overall bearish market. The VWAP line also acts as a form of resistance when price is below it. If price breaks cleanly through it, it signals a larger trend change is coming. Again, you need to pair the VWAP with price action methods.
This is the PayPal stock. You have a large moving downtrend,
so you want to trade with the trend. This here is your short trade setup with
the long wick at the key resistance zone that also has a weekly zone. You have
an uptrend here, a downtrend here, and an uptrend here. Since you’re using
these three reversal points as part of your key zone and the fact that the
three reversal points are part of this larger moving uptrend, you need to set
your VWAP anchor point at the start of the uptrend move. Notice how the VWAP
area of value crosses perfectly with your short trade setup, making it an even
higher quality short trade entry. You would look for an intraday trend change
confirmation before taking a short entry using our entry and exit strategy.
5. Ballinger Band
Next, Bollinger Bands. Before we continue, we want to hear from you. Tell us in the comments below what video topics we should cover. Also, please hit the like button as it allows our team to continue producing more free videos on YouTube.
So first, what is the Bollinger Bands indicator? It is used to help you identify trending markets versus consolidating markets due to its ability to gauge market volatility. In simplified terms, you can use Bollinger Bands to identify overbought or oversold trade entries, but you can also use it to identify breakout momentum trade entries.
To access the Bollinger Bands indicator, find your indicators, type in "Bollinger," select the indicator, and it will appear as an overlay on top of your charts. Leave the settings as default: the middle line is a 20-period moving average, the upper band is two standard deviations above the middle line, and the lower band is two standard deviations below the middle line. The bands are traditionally used to interpret market volatility. During periods of low volatility, you'll often notice that the bands contract, resulting in a sideways consolidating market. During periods of high volatility, the bands expand, leading to a trending market.
One of the traditional ways Bollinger Bands are used is as a form of support and resistance. When price reaches the band above, it can act as resistance and bounce off of it, reversing downwards. When price reaches the band below, it can act as support and bounce off of it, reversing upwards. To increase the quality of this setup, you can do two things: first, apply this strategy to a sideways market. Notice how the bands are moving horizontally and price is moving sideways. Whenever price hits it, it results in a quality reversal. Second, pair the band touch with a key level and candlestick price action.
Identify your key level because of this reversal point here to the left. When price comes back up to the key level, notice how it also aligns with the upper Bollinger Band, making it an area of confluence. Then, wait for candlestick price action to occur, such as this long wick candle that formed right at the key level and the upper band, showing a reaction to the level. As always, a reaction does not equal an automatic trade, so you need to look for trend change confirmation to show that the uptrend is over and that the reversal has begun. Trend change price action comes in many forms, but in this case, a simple way would be to wait for a momentum candle like this to form off of the level before looking for a short entry.
In the opposite direction, this works the same way. You had your key level here because of this reversal point. When price came back down, you had a long wick candle form at the key level and at the lower band, making this an area of confluence. Once you had the momentum candle form off of the level, you would look for a long trade entry through the same time frame or through a lower intraday time frame.
Now, let's dive into the Bollinger Band break strategy. The
core of this strategy involves looking for a break outside of the bands and
expecting price to reverse in the opposite direction. There are two kinds of
Bollinger Band breaks to look for:
1. A slight break where the majority of the
candle is still inside of the bands. This is a good quality break.
2. Where the candle breaks and the majority of the candle body is outside of the band. The further outside of the band it is, the better. If the body is completely outside and doesn't touch the band at all anymore, that is the best type. Type Two is a high-quality Bollinger Band break as it represents a very overbought or oversold region.
Let's combine the Bollinger Band break with key levels. You had your key level of support because of these two reversal points. As price reached the level, you had a Bollinger Band break right at the key level. Also, look at how far the candle body broke outside of the band; this is a very high-quality band break. Once you had a trend change confirmation through the momentum candle, you would take a long entry through the same time frame or through the lower intraday time frames.
One more example: You had your key level of support because
of these two reversal points. When price came back here, it broke outside of
the band at the key level, and you also had multiple long wicks forming, which
presented a great long trade opportunity. When price came back here, it broke
outside with a lot of the candle body outside as well as multiple very long
wick candles right at the key level. This is a very high-quality long trade
setup. You have your key level of resistance because of this reversal point
here. As price came back up, you had a Bollinger Band break right at the key
level. Once you had a trend change confirmation through the lower intraday time
frames, you would look for short trade entries.
6. MACD Indicator
Next, the MACD indicator. So, what is the MACD indicator? MACD stands for Moving Average Convergence Divergence. The indicator tracks the relationship between two moving averages, one fast and one slow. To keep things simple, the MACD indicator can be used for gauging or confirming trend changes or trend continuations.
To access the MACD indicator, click on Indicators, type in "MACD," and select it. It will then appear below your charts. Leave the settings as default: Fast Length 12, Slow Length 26, and Signal Smoothing 9. The line in green here is the MACD line, also known as the fast length. The line in white here is the Signal Line, also known as the slow length, and this here is the Histogram.
The first way to use the MACD is through the crossover method. When price is trending downwards and the MACD line crosses above the Signal Line, it signals a possible trend change from a downtrend to an uptrend, meaning possible long trade opportunities. Conversely, when price is trending upwards and the MACD line crosses below the Signal Line, it signals a possible trend change from an uptrend to a downtrend, meaning possible short trade opportunities.
The next way to use the MACD is through the histogram method. In an uptrend, when you see the histogram bars getting larger and larger, it shows a gain of upwards price momentum, which can be used for continuation long trade entries. However, when you notice the histogram bars starting to shrink, it signals a loss of momentum and may result in a possible trend change from an uptrend to a downtrend, presenting possible reversal trade opportunities (short). In a downtrend, when you see the histogram bars getting larger and larger, it shows a gain of downwards price momentum, which can be used for continuation short trades. Conversely, when you notice the histogram bars starting to shrink, it signals a loss of momentum and may result in a possible trend change from a downtrend to an uptrend, presenting possible reversal trade opportunities (long).
The next way to use the MACD is through divergences. Here is the anatomy of divergence: In an uptrend, price makes a higher high whereas the MACD indicator makes a lower high, showing divergence between price and the MACD indicator. On the charts, price makes a higher high while the MACD indicator makes a lower high, which triggers a trend change. Divergence in an uptrend can act as an early signal of a possible trend change from an uptrend to a downtrend or, more specifically, present possible short trade opportunities.
Going in the opposite direction, in a downtrend, the anatomy
of divergence is as follows: Price makes a lower low whereas the MACD indicator
makes a higher low, showing divergence between price and the MACD indicator. On
the charts, price makes a lower low while the MACD indicator makes a higher
low, which triggers a trend change. Divergence in a downtrend can act as an
early signal of a possible trend change from a downtrend to an uptrend or, more
specifically, present possible long trade opportunities.
7. ICHIMOKO
Next, Ichimoku. To access Ichimoku, find your indicators, type in "Ichimoku," and select it. As a heads-up, we do not use all these lines, but let's first break down what they are. The line in blue is the Conversion Line, the line in red is the Baseline, the line in green is the Lagging Span, the line in light green is the Leading Span A, and the line in light red is the Leading Span B. The only part we use is this highlighted area between the Leading Span A and Leading Span B, which forms the core Ichimoku Cloud. This is why you don’t need to know all the theory behind these lines—having all these lines on your chart will look messy, confuse you, and give you a lot of contradicting signals. So, we’re going to remove all these lines and only keep the Leading Span A and Leading Span B, which forms the cloud.
Let’s get into how the Ichimoku Cloud is traditionally used. First, get your directional bias by looking at whether price is above the cloud or below the cloud. When price is above the cloud, this often signals a bullish upwards market. When price is below the cloud, this often signals a bearish downwards market.
Next, gauge momentum by looking at the distance between price and the cloud. In an uptrend, the further away price is from the cloud, the heavier the bullish momentum. In contrast, when you see price moving closer to the cloud or chopping around inside the cloud, it signals a loss of bullish momentum and price consolidation. In a downtrend, the same thing applies: price being further away from the cloud shows heavy bearish momentum. When price moves closer to the cloud or chops around inside the cloud, it signals a loss of bearish momentum and price consolidation.
When price breaks through the cloud, it can confirm a trend change. In an uptrend, if price is above the cloud and then breaks below it, this signals a trend change from an uptrend to a downtrend. Conversely, in a downtrend, if price is below the cloud and then breaks above it, this signals a trend change from a downtrend to an uptrend.
The Ichimoku Cloud can also be used as a form of support and resistance. In an uptrend, when price is above the cloud and pulls back to the cloud, notice how it reacts to the outline of the cloud and the cloud border acting as a form of support. This means long trade opportunities arise at these areas where price can bounce upwards. Price can also enter the cloud before reversing, which is another way the Ichimoku Cloud acts as a form of support. Conversely, in a downtrend, when price is below the cloud and pulls back to the cloud, it reacts to the outline of the cloud and the cloud border as resistance. This means short trade opportunities arise at these areas where price can bounce downwards. Price can also enter inside the cloud before reversing, which is another way the Ichimoku Cloud acts as a form of resistance.
You can combine an Ichimoku Cloud break with an Ichimoku Cloud pullback entry for higher-quality trade setups. For example, if you have a moving uptrend and price is above the cloud, and price then breaks below the cloud, signaling a trend change from an uptrend to a downtrend, you might see an immediate pullback and multiple long wick candles at the Ichimoku Cloud resistance, presenting a short trade opportunity. Once you have an intraday trend change confirmation, you would take short entries. These setups occurring right after a break through the cloud are of higher quality because you are entering a trade at the start of a fresh trend, meaning the trend has room to move further.
When price is above the cloud, signaling an uptrend, and then breaks below the cloud, this is a trend change from an uptrend to a downtrend. An immediate pullback and candlestick reaction to the Ichimoku Cloud resistance would present a short trade opportunity. Once you have an intraday trend change confirmation, you would take short entries. Conversely, in a downtrend, if price is below the cloud and then breaks above it, signaling a trend change from a downtrend to an uptrend, and price pulls back inside the cloud as support, this presents a long trade opportunity. Once you have an intraday trend change confirmation, you would take long entries.
You can also use the Ichimoku Cloud for trade exits. For instance, if you have a moving downtrend and a trend line connecting the swing highs, once price breaks through the trend line signaling a trend change from a downtrend to an uptrend, you would take long entries on lower intraday time frames. When price reaches the Ichimoku Cloud, consider closing out those long positions in case price reverses off the Ichimoku Cloud.
Now, moving on to the next strategy. This strategy involves finding a trade setup in the same direction as the Ichimoku Cloud directional bias for a higher-quality trade entry. Starting in an uptrend and above the cloud, this is the 15-minute time frame. Price is above the cloud, giving you a bullish upwards directional bias. Look for any type of long trade setup to trade with the bullish momentum given by the Ichimoku Cloud. The trade setup occurred right here through this area of confluence where you have the support level and the moving average crossing. You then had multiple candles reacting to the level and failing to push through, giving you a validated long trade setup. You would then go to the very low time frames to wait for a trend change confirmation before taking long entries.
Let’s show this again on the 1-hour time frame. Price is above the cloud, giving you a bullish upwards directional bias. Look for long trade opportunities to trade with the Ichimoku directional bias. The long trade setup occurred here at a great key level with multiple reversal points, making it of higher quality. You then had multiple long wick candles reacting to the level and failing to push through, giving you a validated long trade setup. You would then go to the very low time frames and wait for a trend change confirmation before taking long entries.
On the 4-hour time frame, price is above the cloud, giving you a bullish upwards directional bias. The long trade setup occurred because of a great support level with multiple touches and a trend line with multiple touches crossing, making this a higher quality trade setup. You then had shrinking candles followed by multiple long wick candles reacting to the level, which validates the long trade setup and makes it very high quality. You would then go to the very low time frames to wait for a trend change confirmation before taking long trades.
In the opposite direction, in a downtrend and below the cloud, price is below the cloud, giving you a bearish downwards directional bias. Look for short trade opportunities to trade with the Ichimoku directional bias. The short trade setup occurred where the trend line resistance level and moving average all crossed. You then had many candles reacting to the level and failing to push through, showing that this area is valid and presenting a higher quality short trade setup. As always, wait for a trend change confirmation through the lower intraday time frames before taking short entries.
Moving on to the next strategy: This strategy involves finding trade setups at key levels or areas of confluence where the Ichimoku Cloud also lines up to increase the quality of a trade setup. Starting in an uptrend and above the cloud, on the 4-hour time frame, price is above the cloud, so you have a bullish bias. The long trade opportunity setup was at a support level with multiple candlesticks reacting to the support level and the cloud. Find an intraday trend change confirmation before taking a long entry.
Again, price is above the cloud, so you have a bullish bias. You have your support zone here because of two reversal points. The long trade opportunity occurred here with price reacting to the support level and the cloud. On the 4-hour time frame, price is above the cloud, so you have a bullish bias. The key level here, because of a reversal point and a false breakout reversal point, is where your long trade opportunity presents itself. Price reacted to the key level and trend line and also entered the cloud. Find an intraday trend change confirmation before taking a long entry.
On the 1-hour time frame, price is below the cloud, so you have a bearish bias. The short trade setup occurred because of multiple long wick candles reacting to the resistance level and the bottom of the cloud.
8. FIBONACCI
In an uptrend, we first look for the 50% Fibonacci level, which is considered "good" because it represents a deep pullback within a moving trend. Next is the zone between the 50% Fibonacci and 61.8% Fibonacci levels, which is considered "great" because it represents a very deep pullback within a moving trend. Finally, the 61.8% Fibonacci level is termed "best" because it represents a very deep pullback within a moving trend.
In a downtrend, the same principles apply: the 50% Fibonacci level is "good," the zone between 50% and 61.8% Fibonacci is "great," and the 61.8% Fibonacci level is "best."
Two very key points:
1. **Fibonacci retracement levels act as a form of support and resistance**, as they represent areas of value within a moving trend. Trade opportunities arise at these Fibonacci levels because major traders look to add to their winning positions at these areas of value, creating momentum for your trade.
2. **Treat Fibonacci levels as areas, not as solid lines or numbers**. Use Fibonacci levels in combination with price action, not on their own. It doesn't have to be a picture-perfect setup.
Let's illustrate this on the charts:
For an uptrend, where you see higher highs and higher lows (impulse moves) and pullbacks (corrective moves), you decide to look for a possible pullback long entry. You use the Fibonacci tool by clicking on the recent swing low, dragging it up to the recent swing high, and then moving it a bit to the right. When price reaches any of these Fibonacci levels, look for candlestick price action and trend change confirmation before taking a long entry.
In a downtrend, where you see lower highs and lower lows (impulse moves) and pullbacks (corrective moves), you use the Fibonacci tool by clicking on the recent swing high, dragging it down to the recent swing low, and then moving it to the right. When price reaches any of these Fibonacci levels, look for candlestick price action and trend change confirmation before taking a short entry.
Combining Fibonacci levels with price action:
In an uptrend, price pulls back to the 61.8% Fibonacci level, representing a very deep pullback. Longwick candles at the FIB level show price reacting to the level. After a trend change confirmation, you might consider a long trade. In a downtrend, price pulls back to the 50% Fibonacci area. Multiple candles with wicks show price reacting to the level. After a trend change confirmation, you might consider a short trade.
Combining Fibonacci levels with support, resistance, and areas of confluence:
Combining Fibonacci levels with support and resistance gives higher quality trade setups. A key level where support, moving average, and Fibonacci align perfectly creates an area of confluence. After a price pullback to this area, you might see a longwick candle forming at the 50% FIB level, indicating a reaction. After an intraday trend change confirmation, you might consider a long entry.
In a downtrend, if the support level, moving average, and 50% Fibonacci align, you might see multiple candles with wicks showing a reaction. After an intraday trend change confirmation, you could take a short entry.
For instance, in a downtrend, if the moving average and key level cross and align with the 50% FIB level, you might see a candle color change and wicks sticking out, creating a successful short trade. Similarly, when the moving average and key level cross at the 50% to 61.8% FIB zone, and longwick candles form, it can create another successful short trade.
9. RSI Indicator
Next, the RSI indicator. RSI stands for Relative Strength Index, and it's an indicator that you apply to your charts to identify overbought or oversold markets. To apply the RSI to your charts, click on indicators at the top, type in "R," and select Relative Strength Index. It will then be applied to your charts along the bottom.
The RSI includes two key levels: the 70 line and the 30 line. Everything at or above the 70 line is considered the overbought region, while everything at or below the 30 line is considered the oversold region. When the RSI line touches 30, it indicates that the price of the asset is cheap. Conversely, when the RSI line touches 70, it indicates that the price of the asset is expensive.
When the RSI enters the oversold region, traders might start buying and entering long positions, expecting the price to go up. When the RSI enters the overbought region, traders might start selling and entering short positions, expecting the price to go down.
The RSI can also be used to find divergences. For example,
in an uptrend where the price makes a higher high but the RSI makes a lower
high, this creates a divergence that can lead to a price reversal. Similarly,
in a downtrend, if the price makes a lower low while the RSI makes a higher
low, this also creates a divergence that can result in a price reversal.
10. Exponential Moving Average
Next, the Exponential Moving Average (EMA). The EMA is an indicator that removes the random fluctuations of price, resulting in a cleaner visualization of the actual price movement. The most commonly used EMA is the 50 EMA, but other popular settings are 100 and 200. We use a variant of the moving average, and if you're a member, you'll know exactly what we're referring to.
In a downtrend, when you see price trending below the moving average, this confirms bearish momentum, and you would lean towards taking short entries. The moving average can also act as resistance for bounce short trades. If you see price break above the moving average, this signals a loss of bearish momentum and that a possible trend change is coming from a downtrend to an uptrend.
In an uptrend, when you see price trending above the moving average, this confirms bullish momentum, and you would lean towards taking long entries. The moving average can also act as support for bounce long trades. If you see price break below the moving average, this signals a loss of bullish momentum and that a possible trend change is coming from an uptrend to a downtrend.
If the moving average is cutting right through price, it indicates a sideways, directionless market.
The best way to use the EMA is to combine it with areas of confluence for high-quality entries. For example, in a long trade setup, you might have a clear moving uptrend. You would trade with the trend, and if you’re at a key zone through these reversal points, such as the 61.8% Fibonacci retracement level, this is a high-quality area of value within a moving trend. If the stochastic is at 20, this represents an oversold condition, indicating that prices are deemed cheap within this time period.
Price reacting to the EMA through a longwick candle during an uptrend, with the EMA acting as support, adds to the setup’s quality. Additionally, if the moving average was recently respected nearby, it means the market is respecting the moving average during this time period. All these factors contribute to a very high-quality long trade setup.
The indicators covered in this video are just the basics. For access to advanced trading tools that give us a huge advantage over other traders, go to WIStrade.com.
Tell us in the comments below what your favorite indicator
is and, more importantly, how you use it.
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