Indicators Quick Reference
What they measure, main signals, and best usage. Use with price action and structure; avoid overload.
Trend Indicators
SMA
Average price (equal weight)
Trend direction; dynamic S/R
Trending; longer period = smoother
EMA
Average price (more weight recent)
Faster trend; crossovers; dynamic S/R
Trending; 9, 20, 50, 200 common
VWAP
Volume-weighted average (session)
Intraday bias; institutional level
Intraday; liquid markets
Ichimoku
Trend, momentum, S/R (cloud, Tenkan, Kijun, Chikou)
Multi-factor trend; cloud S/R
Trending; medium+ TF
Parabolic SAR
Trailing stop (dots)
Trend direction; trailing exit
Strong trends only; poor in chop
Momentum Indicators
RSI
0–100
>70 overbought, <30 oversold; divergence
Range: mean reversion. Trend: divergence, pullback (40–50)
MACD
Line, Signal, Histogram
Crossover (line vs signal); zero line; divergence
Trending; confirm with structure
Stochastic
0–100 (%K, %D)
>80 overbought, <20 oversold; crossover
Range; or pullback in trend
CCI
Unbounded
±100 (or ±200) overbought/oversold; divergence
Similar to RSI/Stochastic
Momentum
Rate of change
Direction; zero cross; divergence
Trend confirmation
Divergence: Price makes higher high but indicator makes lower high = bearish. Price makes lower low, indicator higher low = bullish.
Volatility Indicators
Bollinger Bands
Price vs 2 std dev from SMA
Squeeze (narrow bands) → breakout; mean reversion at bands
Squeeze for breakout; range for fade
ATR
Average True Range
Stops and targets (e.g. 1.5× ATR); volatility filter
All markets for sizing
Keltner Channels
Price vs ATR-based bands
Similar to Bollinger; squeeze, breakouts
Same as Bollinger
Note: Volatility indicators do not give direction—only size of move.
Volume Indicators
Volume profile
Volume at price
POC (highest volume); value area; HVN/LVN
Key levels; intraday and swing
OBV
Cumulative volume (up/down)
Trend of volume; divergence with price
Confirm trend; divergence at reversals
A/D
Volume × position in range, cumulative
Accumulation vs distribution; divergence
Same as OBV
VWAP Anchored
VWAP from custom start (e.g. swing low)
Key level for that “leg”
Swing; institutional level
Quick Rules
Trend: Use MAs, VWAP, Ichimoku in trending markets; filter direction (e.g. only long above 200 MA).
Momentum: In range, use RSI/Stochastic for overbought/oversold. In trend, use for divergence or pullback (e.g. RSI 40 in uptrend).
Volatility: Use ATR for stop distance and target; use Bollinger/Keltner for squeeze (breakout) or band touches (mean reversion).
Volume: Confirm breakouts (volume up) and trend (OBV/A/D in same direction). Volume profile for levels (POC, value area).
Don’t mix too many: Pick 1–2 per category (e.g. EMA + RSI, or VWAP + ATR). Same signal from multiple indicators is still one signal.
Full detail: 05 — Technical Indicators.
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