If you haven't traded stocks yet, you've missed out on many opportunities. With the release of artificial intelligence, technology company stocks have grown by 350% in less than a year, while large company stocks have doubled or even quadrupled in less than a month. Opportunities are right in front of us, and traders need to make quick decisions and enter and exit the market at the right time.
Timing is crucial, but traders who keep up with the news often don't have time to board the train to make money. Therefore, many experienced traders use technical analysis and indicators to predict price fluctuations. In terms of stock leverage trading, every professional trader is familiar with the five indicators.
Let's explore the popular technical indicators used by professional traders together and see what opportunities are waiting for you on the chart.
Practice is the best learning method, and Exness trading terminal has user-friendly features, making it an ideal tool for practicing applying indicators to charts. After reading this article, you can draw price charts and predict price trends like a professional trader.
To open a trading chart among numerous tradable stocks, please register an Exness trading account with no trading obligations. Before you are ready to start real market trading, there is no need to inject funds into your account, so registration can be completed in just a few minutes. Once your email is confirmed, you can open the trading terminal without downloading or installing any content. Just click the "Trade" button in the personal area and select the Exness web trading terminal.
Now that the trading terminal is open, click on the+sign near the top to add a new tab, and then select a stock from the options list. The game has started. It's time to start your technical analysis journey on real-time charts and see how stocks are trending this week.
Setting indicators on the Exness web trading terminal is very simple. Simply select 'Indicators' in the chart toolbar above and search for the indicators you want. Here are the five indicators you will master.
The moving average indicator will create multiple new lines on the chart to represent the average price. If you look back at the past few days and weeks, you will find that whenever the price trend changes direction, these lines will intersect. These intersections are the best entry points. The next intersection that appears may indicate the best time for trading. Even now it may appear.
Tip: When drawing a moving average on a stock chart, the default time period is 9 (9 day moving average), so add two moving averages and double-click each one to change the "length" of one to 50 and the other to 200. If you see a potential intersection, then this stock will become interesting.
Search the 'Indicators' toolbar and draw a Bollinger Bands on the chart. The Bollinger Bands consist of a middle track and upper and lower tracks. On the chart, check if the price has hit one of the upper or lower tracks. Touching the lower band of the Bollinger Bands indicates a weakening trend, and even the price is about to rise. Touching the upper band of the Bollinger Bands indicates that the price will reverse downward. Does the Bollinger Bands support the moving average?
The relative strength indicator measures the momentum or strength of the current trend. If there is no momentum, any directional changes will only be brief and not worth paying attention to. A relative strength index above 70 indicates overbought, which suggests that prices may decline; A relative strength indicator below 30 indicates oversold, which suggests that the price may rise.
The Fibonacci retracement level is different from other indicators. You can find the Fibonacci retracement position on the left vertical toolbar. There are four horizontal lines on the icon. Start drawing Fibonacci retracement levels at the previous extreme price (highest or lowest), then hold down the mouse and drag it to the current extreme price. A colored horizontal line will be displayed on the chart. Each horizontal line is a potential resistance level, where the current price trend may lose momentum and experience a reversal.
The main horizontal line that needs attention is 61.8% (0.618). It is called the "golden ratio" or "golden ratio line". The assumption of technical traders is that if the retracement or price drop reaches this level, the trend is likely to return to its original direction.
SAR indicators are very simple and easy to understand. When the SAR indicator point appears below the current stock price, it indicates that an upward trend is about to occur. When the SAR indicator point appears above the stock price, it indicates that the stock price will show a downward trend.
With these powerful tools, you can now trade stocks using technical analysis like a professional. In addition to the mathematical characteristics of these three popular indicators, it also involves a self fulfilling prophecy. If the above indicators predict that the stock will rise, then countless traders will start buying the stock, and the positive trading volume will lead to an increase in demand, which in turn will drive the price up. Traders who quickly detect signals can earn maximum profits from accurate predictions. Therefore, it is recommended that traders check price charts more often.
Another trick for stock traders is to look at the highs and lows of the past few weeks and compare them with the highs and lows of the past two years. Buying at 'short-term and long-term lows' and then selling at' short-term and long-term highs' can maximize profits. But if we look at the overall situation, the recent high point is still considered a low point, then there will be a lot of volatility and market uncertainty.
The stock price changes rapidly and significantly. Please deposit funds into your account in advance and wait for the appropriate time to respond to the market more quickly and achieve greater profits. However, please trade only when most signals are consistent with each other. Prior to this, your funds are safe in Exness and can be used immediately.
Lastly, becoming a successful trader is like running a marathon, not a sprint. Only through thoughtful decision-making and astute fund management can long-term success be achieved. Avoid using your assets recklessly, do not trade based solely on intuition, and set stop loss and take profit for each trade.
