Indicators

Successful trading requires more than just intuition—it demands a deep understanding of market dynamics, price movements, and momentum shifts. Technical indicators serve as essential tools that help traders analyze trends, confirm signals, and make informed decisions based on historical data. Whether you’re a beginner looking to understand the basics or an experienced trader refining your strategy, this page provides a comprehensive breakdown of key trading indicators.

This guide covers a wide range of trend-following, momentum, volatility, and volume-based indicators, explaining their significance, what they predict, and how to use them for long and short positions. By combining multiple indicators effectively, traders can improve their accuracy, reduce risk, and develop a structured approach to market analysis.

What You’ll Learn in This FAQ Section

The core function of each indicator and how it is calculated.
What the indicator reveals about market trends and momentum.
How to interpret signals for potential buy (long) and sell (short) opportunities.
Best practices for using indicators in combination to enhance trading strategies.

Categories of Indicators Covered

Trend Indicators – Identify the direction and strength of price trends (e.g., EMA, Ichimoku Cloud, ADX).
Momentum Indicators – Measure the speed of price movements (e.g., RSI, MACD, Stochastic Oscillator).
Volatility Indicators – Assess market fluctuations and breakout potential (e.g., Bollinger Bands, ATR).
Volume Indicators – Analyze buying and selling pressure (e.g., OBV, VWAP, Chaikin Money Flow).
Reversal Indicators – Help detect potential market turning points (e.g., Fibonacci Retracements, Williams %R).

Understanding how to apply these indicators effectively is crucial for making data-driven trading decisions. Explore this FAQ to gain deeper insights into how each tool works and how you can integrate them into your trading strategy.

1. Simple Moving Average (SMA)

What It Is:
The Simple Moving Average (SMA) calculates the average price of an asset over a specified period, smoothing out price fluctuations to identify trends.

What It Shows/Predicts:

SMA helps traders recognize the general direction of a trend.
Shorter SMAs (e.g., 10-day) respond quickly to price changes, while longer SMAs (e.g., 200-day) provide a broader view.
When price stays above an SMA, it signals an uptrend, and when below, it suggests a downtrend.

How to Use It for Long and Short Positions:

Long Position: Buy when the price crosses above a significant SMA, such as the 50-day or 200-day moving average, indicating a potential uptrend.
Short Position: Sell when the price crosses below a major SMA, suggesting a potential bearish trend.

2. Exponential Moving Average (EMA)

What It Is:
The Exponential Moving Average (EMA) is similar to the SMA but gives more weight to recent prices, making it more responsive to price changes.

What It Shows/Predicts:

EMA reacts faster to price movement, making it ideal for short-term trading.
Common periods used are the 9, 20, 50, and 200 EMAs.
Helps identify trend strength and potential reversals.

How to Use It for Long and Short Positions:

Long Position: Enter when the price moves above a rising EMA, especially if a shorter EMA (e.g., 9-day) crosses above a longer EMA (e.g., 20-day).
Short Position: Enter when the price moves below a falling EMA or when a shorter EMA crosses below a longer EMA.

3. Relative Strength Index (RSI)

What It Is:
The Relative Strength Index (RSI) measures the speed and magnitude of price movements to determine whether an asset is overbought or oversold.

What It Shows/Predicts:

RSI ranges from 0 to 100, with levels above 70 considered overbought and below 30 considered oversold.
High RSI suggests a possible trend reversal downward, while low RSI suggests a potential rebound.

How to Use It for Long and Short Positions:

Long Position: Buy when RSI drops below 30 and starts rising, indicating potential bullish momentum.
Short Position: Sell when RSI exceeds 70 and starts declining, signaling possible downward pressure.

4. MACD (Moving Average Convergence Divergence)

What It Is:
The MACD is a trend-following momentum indicator that consists of the MACD line, the signal line, and the histogram.

What It Shows/Predicts:

Measures the relationship between two moving averages (typically the 12-day and 26-day EMAs).
The histogram represents the difference between the MACD line and the signal line.
Helps identify trend changes and momentum shifts.

How to Use It for Long and Short Positions:

Long Position: Buy when the MACD line crosses above the signal line and the histogram turns positive.
Short Position: Sell when the MACD line crosses below the signal line and the histogram turns negative.

5. Open Interest

What It Is:
Open Interest refers to the total number of outstanding contracts in futures or options markets.

What It Shows/Predicts:

Rising open interest confirms the strength of a price move.
Declining open interest suggests weakening momentum and possible trend reversal.

How to Use It for Long and Short Positions:

Long Position: Enter when price rises along with increasing open interest, indicating strong buyer conviction.
Short Position: Enter when price declines with rising open interest, confirming strong selling pressure.

6. Long/Short Ratio

What It Is:
This ratio compares the number of long positions to short positions in the market.

What It Shows/Predicts:

A high long/short ratio means more traders are bullish, while a low ratio indicates bearish sentiment.
Extremely skewed ratios may signal upcoming reversals.

How to Use It for Long and Short Positions:

Long Position: Favorable when the ratio is high but not excessively overextended.
Short Position: Consider shorting when the ratio is extremely high, as overleveraged longs can lead to liquidations.

7. Funding Rate

What It Is:
The funding rate is a mechanism in perpetual futures that keeps contract prices close to the spot price.

What It Shows/Predicts:

A positive funding rate means longs are paying shorts, indicating bullish sentiment.
A negative funding rate means shorts are paying longs, signaling bearish sentiment.

How to Use It for Long and Short Positions:

Long Position: Favorable when the funding rate is slightly positive but not excessively high.
Short Position: A high funding rate can indicate a crowded long trade, making a short position more attractive.

8. Bollinger Bands (Upper, Middle, and Lower Bands)

What It Is:
Bollinger Bands measure market volatility using three lines: an upper band, a middle band (SMA), and a lower band.

What It Shows/Predicts:

The bands expand during high volatility and contract during low volatility.
Price touching the upper band suggests overbought conditions, while touching the lower band suggests oversold conditions.

How to Use It for Long and Short Positions:

Long Position: Enter when price touches the lower band and starts reversing upward.
Short Position: Enter when price touches the upper band and begins declining.

9. Average True Range (ATR)

What It Is:
ATR measures market volatility by averaging the range between high and low prices over a set period.

What It Shows/Predicts:

High ATR values indicate increased volatility.
Low ATR suggests a stable market with less movement.

How to Use It for Long and Short Positions:

Long Position: Favorable when ATR increases and price breaks a resistance level.
Short Position: Enter when ATR rises and price breaks support, signaling a strong bearish move.

10. Historical Volatility

What It Is:
Historical Volatility measures past price fluctuations to gauge how much an asset has moved over time.

What It Shows/Predicts:

A spike in historical volatility suggests uncertainty and possible trend shifts.
A drop in volatility often precedes a breakout.

How to Use It for Long and Short Positions:

Long Position: Enter when historical volatility is low, expecting a breakout.
Short Position: Enter when volatility spikes and price shows signs of reversal.

11. Volume Weighted Average Price (VWAP)

What It Is:
VWAP is a trading benchmark that gives more weight to price movements with higher volume, providing a more accurate measure of an asset’s average price.

What It Shows/Predicts:

VWAP acts as a dynamic support and resistance level.
Price above VWAP indicates a bullish trend, while price below VWAP suggests bearish sentiment.

How to Use It for Long and Short Positions:

Long Position: Enter when price moves above VWAP and retests it as support.
Short Position: Enter when price falls below VWAP and retests it as resistance.

12. On-Balance Volume (OBV)

What It Is:
OBV is a volume-based indicator that tracks the cumulative buying and selling pressure of an asset.

What It Shows/Predicts:

Rising OBV confirms a price uptrend, indicating strong buying pressure.
Falling OBV signals increasing selling pressure and potential downtrend.

How to Use It for Long and Short Positions:

Long Position: Enter when OBV is rising alongside price, confirming bullish strength.
Short Position: Enter when OBV declines while price rises, suggesting a bearish divergence.

13. Stochastic Oscillator (%K and %D)

What It Is:
A momentum indicator comparing an asset’s closing price to its price range over a set period.

What It Shows/Predicts:

A reading above 80 indicates overbought conditions.
A reading below 20 signals oversold conditions.

How to Use It for Long and Short Positions:

Long Position: Buy when %K crosses above %D from an oversold zone.
Short Position: Sell when %K crosses below %D from an overbought zone.

14. Average Directional Index (ADX)

What It Is:
ADX measures trend strength without indicating direction.

What It Shows/Predicts:

ADX above 25 signals a strong trend.
ADX below 20 suggests a weak trend or consolidation.

How to Use It for Long and Short Positions:

Long Position: Enter when ADX is above 25 and price is in an uptrend.
Short Position: Enter when ADX is above 25 and price is trending downward.

15. Commodity Channel Index (CCI)

What It Is:
CCI measures price deviation from its average, helping identify overbought and oversold conditions.

What It Shows/Predicts:

A reading above 100 signals strong upward momentum.
A reading below -100 indicates bearish momentum.

How to Use It for Long and Short Positions:

Long Position: Buy when CCI crosses above -100 from oversold territory.
Short Position: Sell when CCI crosses below 100 from overbought conditions.

16. Ichimoku Cloud

What It Is:
A comprehensive indicator with multiple components to identify trend direction, support/resistance, and momentum.

What It Shows/Predicts:

Price above the cloud: Bullish trend.
Price below the cloud: Bearish trend.
Cloud color/thickness: Stronger trends in thicker clouds.

How to Use It for Long and Short Positions:

Long Position: Buy when price breaks above the cloud.
Short Position: Sell when price falls below the cloud.

17. Parabolic SAR

What It Is:
A trend-following indicator that places dots above or below price action to signal trend direction.

What It Shows/Predicts:

Dots below price suggest a bullish trend.
Dots above price indicate a bearish trend.

How to Use It for Long and Short Positions:

Long Position: Buy when dots flip below price.
Short Position: Sell when dots flip above price.

18. Fibonacci Retracements

What It Is:
A tool used to identify potential reversal levels based on Fibonacci ratios.

What It Shows/Predicts:

Common retracement levels: 23.6%, 38.2%, 50%, 61.8%, 78.6%.
Price often reverses at these levels before continuing in the trend.

How to Use It for Long and Short Positions:

Long Position: Buy near 50% or 61.8% retracement levels in an uptrend.
Short Position: Sell near 50% or 61.8% retracement levels in a downtrend.

19. Rate of Change (ROC)

What It Is:
Measures the percentage change in price over a specific period.

What It Shows/Predicts:

High ROC indicates strong momentum.
Declining ROC suggests weakening momentum.

How to Use It for Long and Short Positions:

Long Position: Enter when ROC crosses above zero.
Short Position: Enter when ROC crosses below zero.

20. Money Flow Index (MFI)

What It Is:
A volume-weighted version of RSI that tracks buying and selling pressure.

What It Shows/Predicts:

Above 80: Overbought.
Below 20: Oversold.

How to Use It for Long and Short Positions:

Long Position: Buy when MFI is below 20 and starts rising.
Short Position: Sell when MFI is above 80 and starts falling.

21. Chaikin Oscillator

What It Is:
A momentum indicator tracking the accumulation and distribution of an asset.

What It Shows/Predicts:

Positive values indicate buying pressure.
Negative values suggest selling pressure.

How to Use It for Long and Short Positions:

Long Position: Buy when the Chaikin Oscillator crosses above zero.
Short Position: Sell when it crosses below zero.

22. Aroon Indicator

What It Is:
Measures trend strength and direction.

What It Shows/Predicts:

Aroon Up > 70: Strong uptrend.
Aroon Down > 70: Strong downtrend.

How to Use It for Long and Short Positions:

Long Position: Buy when Aroon Up crosses above Aroon Down.
Short Position: Sell when Aroon Down crosses above Aroon Up.

23. Williams %R

What It Is:
A momentum indicator measuring overbought and oversold conditions.

What It Shows/Predicts:

Above -20: Overbought.
Below -80: Oversold.

How to Use It for Long and Short Positions:

Long Position: Buy when %R moves above -80.
Short Position: Sell when %R moves below -20.

24. Detrended Price Oscillator (DPO)

What It Is:
A tool that removes long-term trends to focus on short-term cycles.

What It Shows/Predicts:

Positive values indicate upward momentum.
Negative values suggest downward pressure.

How to Use It for Long and Short Positions:

Long Position: Buy when DPO crosses above zero.
Short Position: Sell when DPO crosses below zero.

25. Keltner Channels (Upper, Middle, and Lower Bands)

What It Is:
Keltner Channels use an Exponential Moving Average (EMA) with Average True Range (ATR) to form a volatility-based envelope around price movements.

What It Shows/Predicts:

The middle line is an EMA, serving as a trend indicator.
The upper and lower bands adjust based on ATR, expanding in volatility and contracting in stable markets.
Price breaking above the upper band indicates strength, while breaking below the lower band suggests weakness.

How to Use It for Long and Short Positions:

Long Position: Enter when price closes above the upper band, confirming a strong bullish trend.
Short Position: Enter when price closes below the lower band, signaling bearish strength.

26. Z-Score

What It Is:
A statistical measurement showing how far an asset’s price deviates from its mean.

What It Shows/Predicts:

A high positive Z-score means price is significantly above average, potentially overbought.
A low negative Z-score indicates price is below average, possibly oversold.

How to Use It for Long and Short Positions:

Long Position: Buy when the Z-score is below -2, indicating extreme oversold conditions.
Short Position: Sell when the Z-score is above +2, suggesting extreme overbought conditions.

27. Triple Exponential Average (TRIX)

What It Is:
TRIX is a momentum oscillator that smooths price action by applying three EMAs.

What It Shows/Predicts:

A rising TRIX suggests positive momentum.
A falling TRIX signals negative momentum.

How to Use It for Long and Short Positions:

Long Position: Buy when TRIX crosses above zero, confirming bullish momentum.
Short Position: Sell when TRIX crosses below zero, indicating bearish strength.

28. Vortex Indicator (VI+ and VI–)

What It Is:
Tracks trend strength using two lines: VI+ (bullish strength) and VI– (bearish strength).

What It Shows/Predicts:

VI+ crossing above VI– indicates an uptrend.
VI– crossing above VI+ suggests a downtrend.

How to Use It for Long and Short Positions:

Long Position: Buy when VI+ moves above VI–, confirming bullish strength.
Short Position: Sell when VI– moves above VI+, signaling a bearish trend.

29. Donchian Channels

What It Is:
A volatility indicator showing the highest high and lowest low over a given period.

What It Shows/Predicts:

When price breaks the upper band, it signals bullish momentum.
When price breaks the lower band, it suggests bearish movement.

How to Use It for Long and Short Positions:

Long Position: Buy when price breaks above the upper band.
Short Position: Sell when price breaks below the lower band.

30. Elder-Ray Index (Bull and Bear Power)

What It Is:
Measures bullish and bearish pressure by comparing highs and lows relative to an EMA.

What It Shows/Predicts:

Bull Power (Positive value): Bulls are in control.
Bear Power (Negative value): Bears dominate the trend.

How to Use It for Long and Short Positions:

Long Position: Enter when Bull Power is rising above zero.
Short Position: Enter when Bear Power is increasing below zero.

31. Force Index

What It Is:
A volume-based momentum indicator that evaluates buying and selling pressure.

What It Shows/Predicts:

A high positive value confirms strong buying pressure.
A deep negative value suggests selling pressure.

How to Use It for Long and Short Positions:

Long Position: Buy when Force Index rises above zero.
Short Position: Sell when Force Index falls below zero.

32. Chaikin Money Flow (CMF)

What It Is:
CMF measures money flow volume, analyzing whether capital is entering or leaving an asset.

What It Shows/Predicts:

Positive CMF: Buying pressure dominates.
Negative CMF: Selling pressure is high.

How to Use It for Long and Short Positions:

Long Position: Buy when CMF crosses above zero.
Short Position: Sell when CMF crosses below zero.

33. Ulcer Index

What It Is:
Measures risk by evaluating how deep and prolonged price declines are.

What It Shows/Predicts:

High Ulcer Index = High risk and volatility.
Low Ulcer Index = Stable and lower-risk environment.

How to Use It for Long and Short Positions:

Long Position: Favorable when the Ulcer Index is low, indicating a stable trend.
Short Position: Consider shorting when the Ulcer Index rises rapidly, signaling high risk.

34. Williams Accumulation/Distribution

What It Is:
An indicator that identifies accumulation and distribution phases.

What It Shows/Predicts:

A rising line confirms accumulation (bullish signal).
A falling line indicates distribution (bearish signal).

How to Use It for Long and Short Positions:

Long Position: Buy when the indicator trends upward.
Short Position: Sell when the indicator trends downward.

35. Pivot Points and Support/Resistance Levels

What It Is:
A method to identify key price levels based on past price action.

What It Shows/Predicts:

Pivot Point: The central level of importance.
Support levels: Areas where price may find buying interest.
Resistance levels: Areas where price may face selling pressure.

How to Use It for Long and Short Positions:

Long Position: Buy when price holds at a key support level.
Short Position: Sell when price fails at resistance.

36. Fisher Transform

What It Is:
A technical indicator that normalizes price movements for clearer trend identification.

What It Shows/Predicts:

High values suggest overbought conditions.
Low values indicate oversold conditions.

How to Use It for Long and Short Positions:

Long Position: Buy when Fisher Transform crosses above zero.
Short Position: Sell when Fisher Transform crosses below zero.

37. Heikin-Ashi Candlesticks

What It Is:
A modified candlestick chart that smooths price action.

What It Shows/Predicts:

Green candles indicate bullish momentum.
Red candles show bearish momentum.

How to Use It for Long and Short Positions:

Long Position: Enter when green candles form consecutively.
Short Position: Enter when red candles appear consistently.

38. Volume Rate of Change (VROC)

What It Is:
Tracks the percentage change in volume over time.

What It Shows/Predicts:

Increasing VROC confirms high interest in price moves.
Decreasing VROC signals lower market participation.

How to Use It for Long and Short Positions:

Long Position: Enter when VROC is increasing with price.
Short Position: Sell when VROC is dropping alongside price.

39. Klinger Oscillator

What It Is:
Tracks long-term money flow trends.

What It Shows/Predicts:

A positive Klinger suggests accumulation.
A negative Klinger indicates distribution.

How to Use It for Long and Short Positions:

Long Position: Buy when Klinger Oscillator crosses above its signal line.
Short Position: Sell when it crosses below the signal line.

40. Coppock Curve

What It Is:
A long-term momentum indicator designed to identify major market trends.

What It Shows/Predicts:

A rising Coppock Curve suggests bullish conditions.
A falling Coppock Curve signals bearish trends.

How to Use It for Long and Short Positions:

Long Position: Buy when the curve turns positive.
Short Position: Sell when the curve turns negative.

41. Price Rate of Change (PROC)

What It Is:
The Price Rate of Change (PROC) measures the percentage change in price over a set period.

What It Shows/Predicts:

Positive PROC indicates increasing momentum and a bullish trend.
Negative PROC suggests weakening price action and a bearish trend.
Extreme values can signal overbought or oversold conditions.

How to Use It for Long and Short Positions:

Long Position: Buy when PROC moves above zero, indicating rising momentum.
Short Position: Sell when PROC moves below zero, signaling weakening price action.

42. Ultimate Oscillator (UO)

What It Is:
A momentum oscillator that combines short-, medium-, and long-term price action to avoid false signals.

What It Shows/Predicts:

Above 70: Overbought conditions, possible reversal.
Below 30: Oversold conditions, potential upward move.
Divergences between UO and price suggest a trend reversal.

How to Use It for Long and Short Positions:

Long Position: Buy when UO is below 30 and starts moving up.
Short Position: Sell when UO is above 70 and begins to decline.

43. Accumulation/Distribution Line (A/D Line)

What It Is:
A volume-based indicator that measures whether an asset is being accumulated (bought) or distributed (sold).

What It Shows/Predicts:

Rising A/D suggests strong buying pressure and trend continuation.
Falling A/D signals selling pressure and potential price declines.
Divergences indicate possible reversals.

How to Use It for Long and Short Positions:

Long Position: Buy when A/D is rising along with price, confirming buying pressure.
Short Position: Sell when A/D declines while price rises, indicating bearish divergence.

44. Chande Momentum Oscillator (CMO)

What It Is:
A momentum indicator that compares gains to losses over a set period.

What It Shows/Predicts:

Above +50: Strong uptrend, possible overbought conditions.
Below -50: Strong downtrend, potential oversold conditions.
Crossing zero signals trend shifts.

How to Use It for Long and Short Positions:

Long Position: Buy when CMO crosses above zero from negative territory.
Short Position: Sell when CMO crosses below zero from positive values.

45. Balance of Power (BOP)

What It Is:
Measures the balance between buyers and sellers to determine who controls price action.

What It Shows/Predicts:

Positive BOP values indicate strong buying pressure.
Negative BOP values suggest dominant selling pressure.
Sudden shifts may precede reversals.

How to Use It for Long and Short Positions:

Long Position: Buy when BOP shifts from negative to positive.
Short Position: Sell when BOP moves from positive to negative.

46. Moving Average Ribbon

What It Is:
A collection of multiple moving averages plotted on a chart to assess trend strength.

What It Shows/Predicts:

Expanding ribbon: Strong momentum in trend direction.
Contracting ribbon: Weakening trend, possible reversal.
Crossovers within the ribbon confirm trend shifts.

How to Use It for Long and Short Positions:

Long Position: Buy when shorter MAs cross above longer MAs in the ribbon.
Short Position: Sell when shorter MAs cross below longer MAs.

47. Trend Intensity Index (TII)

What It Is:
Measures trend strength by comparing the number of positive and negative price changes.

What It Shows/Predicts:

Above 50: Strong bullish trend.
Below 50: Strong bearish trend.
Approaching 100 or 0 suggests possible exhaustion.

How to Use It for Long and Short Positions:

Long Position: Buy when TII is above 50 and rising.
Short Position: Sell when TII is below 50 and falling.

48. Smoothed Rate of Change (S-ROC)

What It Is:
A variation of the Rate of Change (ROC) that smooths out volatility for more reliable signals.

What It Shows/Predicts:

Positive S-ROC confirms upward momentum.
Negative S-ROC indicates downward movement.
Helps filter out false breakouts and noise.

How to Use It for Long and Short Positions:

Long Position: Buy when S-ROC turns positive after a downtrend.
Short Position: Sell when S-ROC turns negative after an uptrend.

49. Mass Index (MI)

What It Is:
An advanced volatility indicator that detects trend reversals by analyzing range expansion and contraction.

What It Shows/Predicts:

A value above 27 signals a potential trend reversal.
A falling MI after a peak suggests a trend shift.

How to Use It for Long and Short Positions:

Long Position: Buy when MI rises toward 27, then reverses.
Short Position: Sell when MI peaks and starts falling, signaling a reversal.

50. Zig Zag Indicator

What It Is:
A trend-following tool that removes minor price fluctuations to highlight key swings.

What It Shows/Predicts:

Helps identify support and resistance levels.
Filters out market noise to track true trends.

How to Use It for Long and Short Positions:

Long Position: Buy when a Zig Zag bottom forms at a major support level.
Short Position: Sell when a Zig Zag peak appears near resistance.

51. McClellan Oscillator

What It Is:
A market breadth indicator that measures advancing and declining stocks to assess market momentum.

What It Shows/Predicts:

Positive values indicate bullish market momentum.
Negative values signal bearish market sentiment.
Extreme values may suggest overbought or oversold conditions.

How to Use It for Long and Short Positions:

Long Position: Buy when the oscillator crosses above zero, confirming bullish momentum.
Short Position: Sell when the oscillator crosses below zero, signaling bearish conditions.

52. KST (Know Sure Thing) Indicator

What It Is:
A momentum-based oscillator that tracks multiple rate-of-change (ROC) indicators.

What It Shows/Predicts:

Rising KST signals upward momentum.
Falling KST indicates weakening price action.
Crossovers of the KST and its signal line confirm trend shifts.

How to Use It for Long and Short Positions:

Long Position: Buy when KST crosses above its signal line.
Short Position: Sell when KST crosses below its signal line.

53. DMI (Directional Movement Index)

What It Is:
A trend strength indicator made up of +DI (Positive Directional Index), -DI (Negative Directional Index), and ADX.

What It Shows/Predicts:

When +DI > -DI, bulls control the trend.
When -DI > +DI, bears are dominant.
ADX confirms trend strength.

How to Use It for Long and Short Positions:

Long Position: Buy when +DI crosses above -DI with rising ADX.
Short Position: Sell when -DI crosses above +DI with ADX confirming strength.

54. Relative Vigor Index (RVI)

What It Is:
Measures the strength of a trend by comparing the closing price to the trading range.

What It Shows/Predicts:

Rising RVI suggests bullish momentum.
Falling RVI signals bearish movement.
Crossovers between RVI and its signal line confirm entry points.

How to Use It for Long and Short Positions:

Long Position: Buy when RVI crosses above its signal line.
Short Position: Sell when RVI crosses below its signal line.

55. Twiggs Money Flow (TMF)

What It Is:
A volume-weighted version of the Chaikin Money Flow (CMF) that tracks accumulation and distribution.

What It Shows/Predicts:

Positive TMF confirms buying pressure.
Negative TMF signals selling pressure.
Divergences between TMF and price can indicate trend reversals.

How to Use It for Long and Short Positions:

Long Position: Buy when TMF rises above zero.
Short Position: Sell when TMF falls below zero.

56. Median Price Indicator

What It Is:
A simple indicator that calculates the average of the high and low price for a given period.

What It Shows/Predicts:

Helps smooth price action.
Can act as dynamic support or resistance.

How to Use It for Long and Short Positions:

Long Position: Buy when price stays above the median price, confirming bullish control.
Short Position: Sell when price falls below the median price, signaling bearish pressure.

57. TRIN (Arms Index)

What It Is:
A market breadth indicator comparing advancing/declining stocks and volume.

What It Shows/Predicts:

TRIN < 1: Bullish sentiment (more advancing stocks with high volume).
TRIN > 1: Bearish sentiment (more declining stocks with higher volume).
A rising TRIN signals growing bearish momentum.

How to Use It for Long and Short Positions:

Long Position: Buy when TRIN drops below 1 and price trends higher.
Short Position: Sell when TRIN rises above 1.5, confirming bearish control.

58. Gann Fan

What It Is:
A geometric price/time tool that maps out support and resistance angles.

What It Shows/Predicts:

The 45-degree angle (1×1 line) represents the strongest trend support/resistance.
Other angles act as trend confirmation levels.

How to Use It for Long and Short Positions:

Long Position: Buy when price bounces from a key Gann angle.
Short Position: Sell when price fails at a resistance Gann angle.

59. Schaff Trend Cycle (STC)

What It Is:
A hybrid momentum and trend cycle indicator, improving upon MACD.

What It Shows/Predicts:

STC oscillates between 0 and 100, showing cycles within trends.
Above 75 suggests an overbought market.
Below 25 signals an oversold condition.

How to Use It for Long and Short Positions:

Long Position: Buy when STC crosses above 25, indicating an upward cycle.
Short Position: Sell when STC crosses below 75, signaling a downturn.

60. Williams VIX Fix

What It Is:
A volatility indicator designed to act like the VIX index for non-option markets.

What It Shows/Predicts:

Spikes indicate high volatility and potential market bottoms.
Low readings suggest complacency and possible price declines.

How to Use It for Long and Short Positions:

Long Position: Buy when VIX Fix spikes and price stabilizes, signaling a bottom.
Short Position: Sell when VIX Fix remains low and price is overextended, indicating risk of decline.