1. Bollinger Bands (BB)

BB is a volatility indicator consisting of 1 moving average SMA and 2 sidelines with a standard deviation.

Basically, when the 2 bands narrow when the market is quiet, low volatility. 2 bands expand when the market is volatile. So we can use BB to trade in both sideways and trending markets as long as the strategy is right.

As shown below shows how to trade with BB in a sideways market. We mainly trade reversals in the upper and lower bands:

2. Ichimoku Kinko Hyo

Ichimoku Kinko Hyo is a set of lines drawn on charts. This is an indicator that measures future price momentum and identifies areas of future support and resistance. At first glance, this may seem like a very complicated indicator, but if you understand how to use it, you will find it simpler than it looks.

Ichimoku Kinko Hyo includes 4 lines: Kijun Sen, Tekan Sen, Chikou Span, Senkou Span. The figure below shows the interface of the indicator:

3. RSI (Relative Strength Index)

Next is the RSI indicator, a momentum indicator that helps us identify overbought conditions in the market. An RSI above 70 is considered an overbought signal and below 30 is considered an oversold signal.

The RSI is often used for multiple reversal trades. As shown below:

4. MACD (Moving Average Convergence Divergence)

Next is the MACD indicator, an indicator used to determine the strength of a trend including a fast, slow moving average and a Histogram as shown below:

When the 2 moving averages are separated from each other, at the same time the Histogram will also increase or decrease sharply (called a divergence), showing that the trend is strong and vice versa, when the 2 lines are converged, the Histogram also decreases strongly ( (called convergence) indicates that the trend is weakening and a change is imminent.

The moving average intersection signal is usually a reversal trading signal, as shown below:

5. Parabolic SAR (PSAR)

PSAR is a trend indicator, represented as dots on the chart. If these dots above the price indicate downtrend potential, and vice versa below the price indicates uptrend potential:

PSAR shows trend reversal signal: 

Note, do not use PSAR in a sideways market because there will be many noise signals, the indicator changes continuously so the analysis will no longer be accurate.

6. Stochastic

Stochastic is a momentum indicator used to identify oversold signals or to find a trend that has the potential to end. Stoch's above 80 indicates overbought and a break below 20 indicates oversold. As shown below:

Overbought signal

Over-sell signal: 

7. ADX (Average Directional Index)

The ADX is an oscillating indicator with the main role of being used to determine the strength of a trend. The ADX is from 0 to 100, if the ADX exceeds 25 it shows that the trend is strong, above 50 is very strong. If the ADX is below 20, the trend is weak or flat. As shown below:

Note, the ADX does not tell us about a trend, it only tells us its strength, regardless of whether it is bullish or bearish.

The figure below shows the ADX above the 50 level, which shows a very strong uptrend:

These are the 7 main technical indicators in trading that help many traders in their exploration of the market. We can combine several indicators together as long as they match and give you a reliable signal.