Reading Technical Indicators
Technical indicators are essential tools for analyzing market trends and momentum. TradeLens AI uses a combination of indicators to provide comprehensive trading analysis.
Core Indicators
RSI (Relative Strength Index)
Measures momentum by comparing the magnitude of recent gains to recent losses.
Overbought: RSI > 70
Oversold: RSI < 30
Neutral: RSI between 30-70
Moving Averages
Shows trend direction and potential support/resistance levels.
Short-term (50 MA)
Quick trend changes and immediate support/resistance
Long-term (200 MA)
Major trend direction and key support/resistance levels
Volume Analysis
Confirms trend strength and potential reversals.
High Volume
Strong trend confirmation or potential reversal signal
Low Volume
Weak trend or possible consolidation phase
Understanding Indicator Combinations
Strong Buy Signals
- •RSI moving up from oversold (30)
- •Price above both 50 and 200 MA
- •Increasing volume on upward moves
Sample Indicator Reading
In our ETH/USD example:
- • RSI at 55 (Neutral) - Room for upward movement
- • Short-term MA above long-term MA - Bullish trend
- • Moderate volume - Steady trend continuation
This combination suggests a healthy upward trend with potential for continued growth.
Important Considerations
- • No single indicator is perfect - use combinations
- • Different timeframes may show different signals
- • Consider market context and conditions
- • Indicators are lagging - they confirm rather than predict