


📊 Popular Forex Indicators
Understand Market Momentum, Trend & Timing
Intermediate Level
1️⃣ RSI – Relative Strength Index
📈 Purpose: Measures momentum & overbought/oversold levels
🧮 Scale: 0 to 100
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Above 70 = Overbought (price may fall)
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Below 30 = Oversold (price may rise)
✅ Best Used For:
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Spotting reversals
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Confirming entries with price action
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Divergence setups (RSI vs price)
🧠 Tip: Combine RSI with Sniper Pro or Break of Structure for stronger confirmation.
2️⃣ MACD – Moving Average Convergence Divergence
📉 Purpose: Measures trend strength & momentum shifts
🔧 Components:
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MACD Line
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Signal Line
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Histogram (bar chart showing strength)
🔍 Key Signals:
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MACD line crosses above signal line = Possible Buy
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MACD line crosses below signal line = Possible Sell
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Histogram shrinking = Momentum weakening
✅ Best Used For:
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Trend continuation & reversal signals
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Confirming trend direction on higher timeframes
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🧠 Tip: Works great with EMAs or as confirmation after a BOS.
3️⃣ Moving Averages (MA)
📊 Purpose: Smooths price to reveal the trend
🧮 Types:
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SMA (Simple Moving Average)
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EMA (Exponential Moving Average) – reacts faster to price
✅ Common Setups:
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50 EMA = Medium trend
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200 EMA = Long-term trend
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Price above 50 EMA = Uptrend
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Price below 50 EMA = Downtrend
✅ Best Used For:
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Trend identification
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Dynamic support/resistance
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Entry confirmation during pullbacks
🧠 Tip: Use EMA crossovers or combine with Fibonacci for high-confluence setups.
📌 Summary Table
Indicator Main Use Entry Signal Example
RSI. Momentum & reversal. RSI below 30 + bullish candle
MACD Trend strength & shift. Bullish MACD crossover
EMA. Trend direction. Price pulls back to 50 EMA
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