Technical analysis is based on the ability to read charts and analyze price behavior. Indicators help to make the trader's work as easy as possible and provide clear signals for opening trades. Indicators perform calculations on the given formulas on the basis of the chart indicators, and then automatically give the result. Study non-standard indicators and discover new trading opportunities. Instructions are made as simple and clear as possible.

Bollinger Bands is a trend indicator. Unlike most of the instruments of this group, it allows not only to determine the direction of price movement. Bollinger Bands helps to measure the volatility of an asset and find trend reversal points.

Bollinger Bands is optimal for trading assets with high volatility and in a strong trending market. It is most convenient to work with the indicator on the candlestick chart.

The indicator consists of three simple moving average lines.

The Central SMA has a period of 20. This is the main line of the indicator. It shows the direction of price movement and its changes. The upper and lower lines form the price channel of the indicator.

The shape of the channel does not depend on the fluctuations of the Central SMA and does not always repeat its movement. The channel shows how the volatility of the asset changes. It can expand and contract.

If the channel has expanded, then the volatility of the asset has increased. Its price changes strongly and quickly, and the market appears up and down trends. If the channel is narrowed — the volatility has fallen. The price of the asset is almost unchanged, and a sideways trend is formed in the market. When trading on a sideways trend, remember that the Bollinger Bands may give inaccurate signals.

Pronounced trends and sideways trend regularly change each other, so the channel Bollinger Bands is narrowing and expanding constantly. The price of the asset is inside the channel most of the time — about 95%.

– Bollinger Bands is an independent indicator. However, it is recommended to use it in combination with other analysis tools. For example, Bollinger Bands can be used along with MACD and RSI.

The fact is that SMA — the basis of Bollinger Bands — attributes the same weight to all price data: old and new. Accordingly, the indicator may contain irrelevant information and give inaccurate signals.

– If you reduce the period of Bollinger Bands, the indicator will give more signals, but many will be false. If you increase the period, the signals will be less, but they will be more accurate. It is recommended to use the standard settings of Bollinger Bands, especially for novice traders.

The indicator generates 4 main signal to increase.

– If after narrowing the indicator channel is expanded and the price went up, you can trade to increase.

– If the chart has reached the lower limit of the channel and crossed it, and then turned up and began to grow, you can open an up trade.

It is recommended to trade this signal during periods of high volatility, when there is no strong trend in the market. If there is a clear and long trend on the chart, the breakout may be false and the price will not reverse.

– If the chart has crossed the Central SMA from the bottom up, you can open a up trade.

– Another up signal is a W-shaped figure "double bottom".

The chart reaches the lower limit, crosses it and pushes up. The first line W. Then the chart grows to the Central SMA, crosses it and turns down. The second line W.

Then the chart reaches the lower limit, but does not cross it, and turns up. The third line W. After that, the chart grows and forms the last W line. When the price crosses the level, which is approximately at the height of the Central point W, you can trade to increase.

As in the case of the points of entry to increase, the indicator generates 4 signals to decrease.

– If after narrowing the channel is expanded, and the price began to fall, you can trade to discrease.

– If the chart reached the upper limit of the channel and crossed it, and then turned down and began to fall, you can open a down trade.

As with a similar up signal it is better to enter the market using this signal during periods of high volatility. If there is a clear trend on the chart, the breakout may be false. The price won't turn around.

– If the chart has crossed the Central SMA from top to bottom, you can open a down trade.

– The M-shaped figure on the chart, the reverse version of the W-shaped figure is also a down signal. Its name is "Twin Peaks".

The chart reaches the upper limit, crosses it and turns down. Then the price falls to the Central SMA, crosses it and turns up.

Next, the chart rises to the upper limit, but does not cross it, and turns down. As soon as the price crosses the level, which passes approximately at the height of the Central point M, you can trade to discrease.

The main components of the indicator are a simple moving average (middle line) with one line above and one line below which are plotted a certain distance from the moving average.

The middle line, moving behind the chart, shows the direction of the trend.

The upper and lower lines create a price range. If the chart goes beyond its boundaries, this is a signal to open a trade.

If the chart and the lower line of the indicator intersect, then the trend may reverse in the very near future.

If the chart’s candlestick crossed the lower boundary of the price range, it is probably signaling an uptrend.

When the chart crosses the upper Bollinger Band, it is probably signaling a downtrend.

Williams %R is an oscillator. It is used to identify overbought and oversold. In addition, the indicator helps to determine the direction of the price movement and find the points of its reversal.

Williams %R is optimally suited for the trades in the reversal of the trend. The oscillator can also be used in trading in the direction of price movement. In this case, you need to combine Williams %R with trend indicators to filter out false signals. The oscillator can be used on any time frame.

Williams %R Indicator consists of one line with a period of 14. This line moves in the limits of 0 and 100 and periodically crosses the -20 and -80 levels. -20 is the overbought level and -80 is the oversold level.

The Williams %R line period can be changed. If you reduce it, signals will be more, but many of them will be false. If the period value is increased, the number of signals will decrease, but they will be more accurate.

It is recommended to use the standard period settings, especially for novice traders. This value is considered optimal in terms of the number and quality of signals.

The oscillator generates 3 signals to open an up trade.

– Exit the oversold zone. The indicator line starts to grow below level -80, crosses it from the bottom up and continues to go up.

– Bullish divergence. The chart moves down, that is, indicates a drop in the price, and the oscillator is directed up and at the same time is in the oversold zone.

Divergence is the rare but most accurate Williams %R signal.

– Strong upward trend. In this case, Williams %R needs to be supplemented with trend indicators to confirm the signal.

The indicator gives 3 signals to open a down trade.

– Exit the overbought zone. The oscillator line starts to decline above level -20, crosses it from top to bottom and continues to go down.

– Bearish divergence. The chart moves up, that is, it indicates the growth of the price, and the indicator is directed down and is in the overbought zone.

– Strong downward trend. As with an uptrend, in this case Williams %R needs to be supplemented with a trend indicator to confirm the signal.

Bulls Power and Bears Power are oscillators. Both tools were developed by Alexander Elder.

They are direct opposites of each other by the type of signals they generate. Due to this difference the indicators complement each other, so they are most often used together. The Bulls Power indicator shows the strength of the bulls in the market. If they are more than "bears", an uptrend is established. Bears Power demonstrates the power of "bears". If the market is dominated by them, a downtrend is established. In all other respects, these oscillators are the same. Both instruments are calculated on the basis of the EMA. On the chart, they are most often displayed as a line or a histogram. These indicators are used to determine the direction and strength of the trend, find price reversal points and identify divergences. The instruments can be used on any time frame. They are suitable for short-term and long-term trades. Bulls Power and Bears Power are simple and clear oscillators, their signals are easy to read. It will be convenient for both experienced and novice traders to work with them.

As already mentioned, these oscillators are usually displayed on the chart as a line or histogram. The histogram is used more often.

Bulls and Bears Power have a customizable period. The longer the period, the less signals the instrument generates, but they will be more accurate. The shorter the period, the more signals the indicator will give, but many of them will be false.

In most cases, period 13 is used. It is considered optimal in terms of quality and number of signals.

Histograms of oscillators are constantly moving above and below the zero line. Changes in histograms give signals to open a trade.

– Even when using Bulls Power and Bears Power at the same time, you need to add trend indicators. Most often oscillators are combined with EMA. There is even a comprehensive indicator that consists of these three tools. It's called "Elder-ray".

The fact is that Bulls and Bears Powers do not always accurately reflect the trend. In addition, they may contain outdated data on the asset price, and therefore give inaccurate signals

Use additional tools of technical analysis to filter false signals and increase the efficiency of trade.

– Bulls Power and Bears Power can be used to analyze any asset: currency pairs, raw materials, securities, etc.

When searching for points of entry to increase, we need firstly to take into account the Bears Power signals. In this case, Bulls Power serves as an auxiliary indicator.

You can open an Up trade in two cases:

– Bears Power is below zero and moving up. The EMA line is also going up, confirming the uptrend.

If the last column of the Bulls Power histogram is higher than the previous one, it additionally confirms the signal.

Do not enter the market if Bears Power is going above zero. In this case, there is a possibility that the trend will turn down, and the trade will be unprofitable.

– A bullish divergence has formed between the price chart and Bears Power.

When opening a down trade, you should first take into account the Bulls Power signals. Bears Power in this case acts as an additional, confirming oscillator.

There are 2 main signals to open a down trade:

– Bulls Power is above zero and moving down. The EMA line is also decreasing, confirming the downtrend.

If the last column of the Bears Power histogram is lower than the previous one, it additionally confirms the signal.

If Bulls Power drops below zero, it is not recommended to open a trade. In this case, there is a possibility that the price will turn up, and the trade will be unprofitable.

– A bearish divergence has formed between the price chart and Bulls Power.

The ROC indicator (full name - Price Rate of Change) is an oscillator. It helps to determine the direction and strength of the trend, find price reversal points and identify divergences.

The indicator is used to trade with the trend and price reversal. You can work with it on any time frame. ROC is suitable for both short-term and long-term trading. So, ROC is a universal oscillator that helps to solve several problems at once. At the same time, it is a simple tool. Both beginners and experienced traders will easily learn how to work with it.

– Unlike most oscillators, Price Rate of Change has no limit levels. This indicator feature is related to the way its calculated.

ROC is calculated based on fluctuations in the asset price. The price changes constantly and it can go up or down by any number of points. So the indicator can also go up or down without restrictions.

– ROC is an independent oscillator. However, it is recommended to combine it with other tools to confirm the signals. This need is also explained by the ROC calculation method.

The fact is that the indicator attributes the same weight to all changes in the asset price, although the latest changes are more important. Because of this, the oscillator may contain outdated information and give false signals.

Additional technical analysis tools will help filter them out. For example, you can use SMA, RSI or Bollinger Bands.

– The oscillator does not have fixed overbought and oversold levels, but they can be built separately for each asset. They help more accurately to determine the trend reversal points and filter out false signals about the trend change.

Levels are drawn on the indicator chart. The level of overbought is based on the highs of the price which it turned down. The oversold level is based on the lows of the price which it turned up.

Important: the oscillator should be in overbought and oversold areas no more than 10% of the time.

The indicator generates 3 main up signals:

– Continuation of the uptrend. An uptrend has formed on the chart, and the rate of change line has crossed the zero level from the bottom up and is growing up.

– Trend reversal. To get this signal, you need to build overbought and oversold levels.

The signal to open a trade will be the exit of the ROC line from the oversold zone. This is a situation when the indicator begins to grow under the oversold level, crosses it from the bottom up and continues to go up.

The oscillator gives three main down signals.

– Continuation of the downtrend. A downtrend has formed on the chart, and the rate of change line has crossed the zero level from top to bottom and is going down.

– Trend reversal. You can open a trade after the ROC line leaves the overbought zone. This is a situation when the indicator goes down above the overbought level, crosses it from top to bottom and continues to go down.

– Bearish divergence.

The DeMarker indicator is an oscillator. It helps to determine the direction of price movement and the strength of the trend. The indicator also allows you to identify overbought and oversold assets.

The DeMarker indicator is best to use to trade in the trend reversal. The indicator can be used on any time frame, so it is suitable for both short-term and long-term trades. The DeMarker indicator is an easy to use oscillator. Even novice traders will be able to quickly learn how to work with it .

The DeMarker indicator is an oscillator. It helps to determine the direction of price movement and the strength of the trend. The indicator also allows you to identify overbought and oversold assets.

The DeMarker indicator is best to use to trade in the trend reversal. The indicator can be used on any time frame, so it is suitable for both short-term and long-term trades. The DeMarker indicator is an easy to use oscillator. Even novice traders will be able to quickly learn how to work with it .

The DeMarker consists of one curve with a period of 14. This value can be changed.

If you reduce the period, the number of signals will be more, but many of them will be false. If you increase the period, the signals will be less, but they will be more accurate.

The RSI line is moving within the limits of 0 and 100. At the same time, it periodically crosses the levels: overbought level 0.7 and oversold level 0.3. These are the key levels, as crossing the DeMarker line with them gives signals to enter the market.

Beginners are recommended to use the standard oscillator settings: period 14, overbought level 0.7 and oversold level 0.3. These values are considered optimal for the quality and quantity of signals.

The oscillator gives 2 main signals to open an up trade.

– Exit the oversold zone. This is the situation when the indicator starts to grow below level 30, crosses it from the bottom up and continues to go up.

– Bullish divergence.

Indicator generates 2 basic signals to enter the down market.

– Exit the overbought zone. This is the situation when the oscillator line starts to decline above the 0.7 level, crosses it from top to bottom and continues to go down.

– Bearish divergence.