Technical Analysis 101
The core technical indicators every trader should know — RSI, MACD, moving averages, and volume profile.
Moving averages
The 20, 50, and 200 day simple moving averages are the most-watched lines on any chart. They act as dynamic support and resistance simply because enough traders watch them. Price above all three is a bullish regime; below all three is bearish.
RSI (Relative Strength Index)
RSI is a 0–100 oscillator measuring the magnitude of recent gains vs. losses. Over 70 is traditionally overbought, under 30 oversold. The real edge comes from divergence: when price makes a new high but RSI does not, momentum is fading.
MACD
MACD is the difference between two exponential moving averages (12 and 26 period), plotted with a 9-period signal line. Crossovers and histogram expansion flag momentum shifts. Combine with trend context — MACD signals inside a strong trend fail often.
Volume profile
Volume profile shows how much volume traded at each price level over a window. Peaks (high-volume nodes) act as magnets and strong support/resistance. Gaps (low-volume nodes) are where price moves quickly once entered.
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