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If you’re not trading stocks right now, then you’re missing out on a lot of opportunities. There are AI releases pumping tech companies by 350% in less than a year, and big brand stocks doubling and even tripling in less than a month. There’s opportunity for traders who can invest without delay, getting in and out of the markets at just the right time.
Timing is key, but traders following the news are usually too late to board the money train. This is why many experienced traders turn to technical analysis and indicators to forecast a rise or fall, and there are 5 indicators every pro trader knows well when it comes to leveraging stocks.
Let’s explore the top technical indicators that professional traders use and see what opportunities are awaiting you on the charts right now.
Getting started
The best way to learn something is to do it, and the Exness Trading Terminal is an ideal and friendly way to practice applying indicators to charts. By the time you’ve finished reading this article, you’ll be plotting price charts and forecasting price actions like a professional trader.
To open a trading chart on one of the many tradable stocks, sign up for a no-obligation Exness trading account. There’s no need to fund the account until you are ready to start trading on the real markets, so it only takes a few minutes. Once your email is confirmed, you can open the Trading Terminal without the need to download or install anything. Just click the ‘Trade’ button from your personal area and select the Exness Terminal.
Now the Trading Terminal is open, hit the + symbol near the top to add a new tab and select a stock from the list of options. Here’s where the fun begins. It’s time to start your technical analysis journey on live charts and see what stocks are doing this week.
TOP 5 Indicators for trading price
Laying indicators on the Exness Terminal is easy. Simply select ‘Indicators’ on the upper chart toolbar and search for the indicator you want. Here are the top 5 indicators you’ll be mastering.
1 . Moving Averages (MA)
The moving averages indicator will create new lines on the chart that represent the average price. If you look back over the last few days and weeks, you’ll see crossover points whenever there was a directional shift in the price trend. Those crossovers preceded an optimum entry point. Next time there’s a crossover, it could be the right time to trade. It might even be happening right now.
Top tip: When laying MAs on a stock chart, the default time period is 9 (9-day average), so add an MA twice then double tap the Moving Averages on each one and change the one ‘Length’ to 50, and the other to 200. If you see a potential crossover, that stock is about to get interesting.
2 . Bollinger Bands
3 . Relative Strength Index (RSI)
The RSI indicator measures the momentum or power of the current trend. Without momentum, any direction change will be short-lived and not worthy of your attention. An RSI above 70 indicates overbought conditions, which might precede a downward move, while an RSI below 30 suggests oversold conditions, possibly preceding a rise.
4 . Fibonacci Retracement
The Fibonacci Retracement differs from the other indicators. You’ll find it on the left vertical toolbar. The icon has 4 horizontal lines. Start drawing the Fibonacci Retracement at the previous extreme price (high or low), holding the click until you reach the current extreme. Colorful levels will show on the chart. Each level is a possible resistance point where the current price action can lose momentum and reverse.
The primary level to watch for is 61.8% (0.618). It is known as the “golden ratio” or “golden mean.” Technical traders work on the assumption that if a retracement or price fallback reaches this level, there is a strong likelihood that the trend will resume its original direction.
5 . Parabolic SAR
The Parabolic SAR indicator is very simple and easy to read. When the Parabolic SAR dots appear below the current stock price, it suggests a coming upward trend. When the Parabolic SAR dots appear above the price, it suggests a downward trend.
Conclusion
Another top tip for stock traders is to look at the highs and lows over the last few weeks and compare them with the highs and lows over the last 2 years. Buying at a ‘short and long term low’ and then selling at a ‘short and long term high’ will maximize results. But if recent highs are still considered low in the big picture, expect lots of volatility and market uncertainty.
stock prices can move fast and far. Funding your account in advance and waiting for the right moment can help you react to the market faster and yield more attractive results. But only trade when the majority of signals are aligned with each other. Until that time, your money is safe and instantly accessible with Exness.
One last thing. Being a successful trader is like running a marathon, not a sprint. Long-term success is only possible through calculated decisions and smart money management. Avoid being reckless with your equity, don’t trade on instincts alone, and set a Stop Loss and Take Profit for every trade.