- Volume:
- The volume indicator displays the amount of assets traded over a specific period.
- Volumes corresponding to price movements confirm the trend.
- Divergence in volumes is also considered.
- An increase in volume during a price rise confirms the strength of the uptrend, while a decrease in volumes during a price rise may indicate weakness in the trend and the possibility of a reversal.
- An increase in volumes during a price decrease may indicate growing interest in the asset, potentially leading to a future price increase.
- MACD (Moving Average Convergence Divergence):
- MACD is an indicator based on the difference between two exponential moving averages (EMA).
- It helps identify changes in the strength and direction of the trend.
- MACD signals are generated through the intersection of the signal line (smoothed EMA) and the histogram representing the difference between two EMAs.
- VPVR (Volume Profile Visible Range):
- VPVR is a vertical volume profile of the visible range, showing where the most trading activity occurred within a specific price range.
- High peaks in VPVR can serve as support or resistance levels where significant trading activity took place.
- RSI (Relative Strength Index):
- RSI measures the speed and change of prices within a set period, helping determine whether an asset is overbought or oversold.
- RSI ranges from 0 to 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions.
Using these indicators in a comprehensive approach can provide traders with valuable information for decision-making regarding entry or exit points. It’s crucial to consider the context and the relationship between different indicators for more accurate analysis.