Seasoned traders rely on these 5 tools for life; the fancy ones are just for show, glance and move on.
 

1. RSI: Market Sentiment Thermometer

One-sentence usage:

 

Below 30 → Others dump on you, the floor is smashed through

 

Above 70 → Others chase highs, you run, the ceiling is pierced

 
The most ruthless play: Watch for divergence! Price hits new high, RSI doesn't → Reverse to short, win 8 out of 10 times.
 

2. Moving Averages (MA): Lazy Person's Trend Tool

Beginners only need to watch two lines:
 
  • 50-day MA (blue line): Short-term bull-bear divide, above it bulls dominate, below it bears dominate
  • 200-day MA (red line): Long-term bull-bear lifeline, above it you can basically ride a big bull market
Most classic signals:
 
  • Golden cross (short-term crosses above long-term) → Get in
  • Death cross (short-term crosses below long-term) → Get out
 
A bit more advanced: Price pulls back to 20-day or 50-day without breaking → Add to position opportunity

 

3. MACD: Trend Momentum Bomb

Remember three lines:
 
  • DIFF (white line), DEA (yellow line), Histogram (red/green)
 

Golden cross/death cross + histogram expanding → Trend starting

 

Divergence means run: Price new high, histogram shortening → Main force secretly distributing

 

Red histogram above 0 axis doubles → Main upwave, don't hesitate, go long

4. StochRSI: RSI on Steroids

Regular RSI too slow? StochRSI gives you an adrenaline shot.

 

Usage in two words:

 

Below 0.2 → Oversold to the max, dare to go long blindly

 

Above 0.8 → Overbought to the max, reverse short for big gains

 
Downside: Too many signals, easy to get itchy fingers, filter with MAs before acting.
 

5. Bollinger Bands (BB): Volatility Radio

Remember three bands:
 
  • Price touches upper band → Overbought, prepare to reduce position
  • Price touches lower band → Oversold, prepare to bottom fish
  • Bollinger Bands contract (three lines squeeze together) → Calm before the storm, prepare ammo
  • Bollinger Bands expand → Big move starting, follow the direction and eat till full

Multiple Indicators in Sync is the Way

Plot these 5 indicators on the same chart, and you'll see:

 

Truly great buy/sell points are usually when 2 or more indicators simultaneously scream “Get in” or “Get out”.

 

Only one indicator yelling? Probably a fakeout, sip some tea first.

Finally, a Survival Mantra for You

RSI for overbought/oversold,

 

MA for trend direction,

 

MACD for momentum strength,

 

StochRSI for extreme opportunities,

 

Bollinger Bands for volatility switch.

 

Beginners first memorize these 5 by rote,

 

Seasoned traders then blend them into their sixth sense.

 

The other 999 indicators?

 

Just tools for others to harvest your leeks.

 

Less is more,

 

Master these 5, and you can face off against 99% of technical players.

 
Get on board, brother.