👑 THE UNCROWNED BEST INDICATORS PT.1That's the Part.1 of my collection of Uncrowned best indicators for trading.
I choose to call this post " uncrowned " because these indicators are firstly free resources and second well utilized and combined are much better than most of the paid indicators.
Often the best indicators are forgotten just because seem too basic or have no marketing behind them.
I can assure you, the top perform algorithm traders at least use for sure one of these 5 indicators. ( or more.. )
Making a great algorithm requires time to find the right combination of indicators and patience in backtesting.
If you don't know some of these indicators, I suggest you have a look, you can find them for free here in Tradingview.
N.1 AROON
The Aroon indicator is a technical indicator that is used to identify trend changes in the price of an asset, as well as the strength of that trend. In essence, the indicator measures the time between highs and the time between lows over a time period. The idea is that strong uptrends will regularly see new highs, and strong downtrends will regularly see new lows. The indicator signals when this is happening, and when it isn't.
The indicator consists of the "Aroon up" line, which measures the strength of the uptrend, and the "Aroon down" line, which measures the strength of the downtrend.
The Aroon indicator was developed by Tushar Chande in 1995.
Here is an Idea of how to use it, very basic. You can combine this indicator with your own favorite ones to create your best strategy.
Check the settings to find the right setup.
N.2 STOCH RSI
I personally love The Stochastic RSI. This indicator as the normal stochastic shows ranges between zero and 100 and is created by applying the Stochastic oscillator formula to a set of relative strength index (RSI) values rather than to standard price data. Using RSI values within the Stochastic formula gives traders an idea of whether the current RSI value is overbought or oversold.
The StochRSI oscillator was developed to take advantage of both momentum indicators in order to create a more sensitive indicator that is attuned to a specific security's historical performance rather than a generalized analysis of price change.
The StochRSI was developed by Tushar S. Chande and Stanley Kroll and detailed in their book "The New Technical Trader," first published in 1994. While technical indicators already existed to show overbought and oversold levels, the two developed StochRSI to improve sensitivity and generate a greater number of signals than traditional indicators could do.
The StochRSI deems something to be oversold when the value drops below 20, meaning the RSI value is trading at the lower end of its predefined range, and that the short-term direction of the underlying security may be nearing a low a possible move higher. Conversely, a reading above 80 suggests the RSI may be reaching extreme highs and could be used to signal a pullback in the underlying security.
Along with identifying overbought/oversold conditions, the StochRSI can be used to identify short-term trends by looking at it in the context of an oscillator with a centerline at 50. When the StochRSI is above 50, the security may be seen as trending higher, and vice versa when it's below 50.
The StochRSI should also be used in conjunction with other technical indicators or chart patterns to maximize effectiveness, especially given the high number of signals that it generates.
N.3 ATR Average True Range
I think the ATR is the base of any algorithm or at least every algorithm trader has at least one setup with this indicator to calculate the Stop loss or the Take profit or both together.
The average true range (ATR) is a technical analysis indicator, introduced by market technician J. Welles Wilder Jr. in his book New Concepts in Technical Trading Systems, that measures market volatility by decomposing the entire range of an asset price for that period.
The ATR may be used by market technicians to enter and exit trades and is a useful tool to add to a trading system. It was created to allow traders to more accurately measure the daily volatility of an asset by using simple calculations. The indicator does not indicate the price direction; rather it is used primarily to measure volatility caused by gaps and limit up or down moves. The ATR is fairly simple to calculate and only needs historical price data.
The ATR is commonly used as an exit method that can be applied no matter how the entry decision is made.
N.4 The Bullish and Bearish Engulfing
Well, this indicator, free by tradingview show exactly the presence of Bullish and Bearish reversal made from Engulfing pattern.
It can be a great confirmation indicator for your strategy if used together with other indicators inside your algorithm.
N.5 WAE - Waddah Attar Explosion
Last but not least, an incredible free indicator. Great for confirmation entry as well as Volume and trend direction.
Trading volume can help an investor identify the momentum of a currency pair and confirm a trend. If trading volume increases, prices generally move in the same direction and can provide a heads-up if volume diminishes. Once volume begins to diminish and the fuel for the trend starts to dry up, a reversal or ranging market may be on the horizon. This particular volume indicator has only three components to interpret, visually straightforward, easy to understand, and user-friendly.
I hope at least one of these Five uncrowned indicators will become part of your arsenal.
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Topindicator
ETH Breaks Through Resistance! What's Next?In this post I'm going to cover important support/resistance levels on Ethereum and where I think we're going from here.
As you can see from our last post, ETH rejected perfectly off of the 1229 level and hit our support of 1150 to the tee on Nov 28th! Since then, it's been on a steady uptrend and recently broke that 1229 level and exploded to 1300!
The next big resistance I'm looking at is 1367. This was the previous resistance for most of Oct and I can see us rejecting there at least once. Right now we can see the Wave Fusion indicator flashed two Blood Moons which took us from 1315 to 1280. Right now I'm looking at 1274 as being the micro support on the hourly as it also coincides with the trendline support. If that breaks, I'm looking at 1229 to act as our new MAJOR support as it was resistance 3 times in the past week. If we end up breaking that, then I'm afraid we could go all the way down to 1150 again.
I'm waiting for a buy signal on Wave Fusion before pulling the trigger but closely watching the three support levels mentioned above.
If you have any questions on my technical analysis or indicators used, please leave a comment below or send me a PM :)
Thanks for reading!