Currently working as a trader, which has been gaining popularity steadily because it allows earning money 24/7, whether in stock markets, forex, or crypto. But the truth is, making consistent profits is not easy. You need a good trading plan, and most importantly, choose the right indicators to help analyze prices.

Today, I want to share the 5 most commonly used indicators in trading. These indicators help us find entry and exit points, TP/SL more accurately, including Moving Average, RSI, MACD, Volume, and Visible Range. Let’s take a look.

Starting with the first one, Moving Average or MA, which is an indicator that every trader uses. It’s the easiest way to see the trend of the price. If the price is above the MA, it indicates an uptrend. If below, it indicates a downtrend. Some traders use multiple MAs simultaneously, such as MA 5, 35, and 200 days, to observe different timeframes. The downside of MA is that it’s lagging behind the actual price and often gives false signals in choppy, sideways markets.

Next is RSI, used to identify overbought/oversold conditions. If RSI is below 30, it indicates the market is oversold and may bounce back up. If above 70, it suggests overbought conditions and a possible decline. RSI is calculated by comparing the average gains and losses over the past 14 candles. Its advantage is that it helps identify reversal points well, but the problem is that in strong trending markets, RSI can stay in overbought/oversold zones for a long time, causing us to sell prematurely.

Then there’s MACD, an indicator that shows both trend and momentum. MACD is calculated by subtracting the 26-period EMA from the 12-period EMA, with a signal line of the 9-period EMA. When MACD crosses above the signal line, it’s a bullish signal; crossing below indicates a bearish trend. This indicator is quite comprehensive, but the downside is that it’s complex to calculate and signals often come after the price has already moved significantly.

Next is Volume, which helps confirm the strength of price movements. If the price rises along with increasing volume, it shows strong buying power. If the price drops but volume decreases, it indicates the decline isn’t strong. This indicator confirms whether a breakout of resistance is genuine or just a fluke. The limitation is that volume doesn’t tell us the direction of the price movement itself.

Finally, Visible Range or Volume Profile, which is a relatively new indicator. It shows at which price levels most market participants have entered, helping identify strong support and resistance levels. The downside is that the chart can look cluttered, and some platforms require a subscription fee.

In reality, these indicators are just tools to assist you. They don’t guarantee you’ll become rich. Every trader uses different indicators depending on their style and the assets they trade. I recommend backtesting to see which indicators suit your trading. And always have a clear TP/SL plan. Investing involves risks, so choose the indicators that work best for you.