A beginner-friendly explanation of RSI, MACD, and moving averages for trading better with indicators.
Indicators are tools that help reveal momentum and trend strength.
- RSI (Relative Strength Index) shows overbought and oversold conditions.
- MACD tracks momentum with a signal line crossover.
- Moving averages smooth price data and reveal trend direction.
A simple strategy is to use moving averages for trend direction, then RSI to time entries during pullbacks. MACD crossovers can confirm momentum shifts.