Knowledge-base section
Technical Analysis
Trends, levels, candlestick patterns and indicators: how to read a chart and evaluate setups across markets and timeframes.
TradingView Entry Point Indicator: How to Filter Out False SignalsThe TradingView entry point indicator marks the moment when the conditions in its formula align. One marker is not enough to make a decision: check the candle close, trend direction, position relative to the level, volatility, and the scenario invalidation point. Then set an alert to the same mode and apply the rule to every consecutive signal. Past results do not guarantee future performance.10 minA Trader's Trading Plan: How to Turn Rules into a Repeatable ProcessA trading plan is a practical way to describe an observable market state, not a promise of results. Evaluate it on closed candles, on a defined timeframe, and within its context. The key test is to define the backtest, invalidation condition, available execution price, and acceptable risk in advance, then record every event without cherry-picking successful examples.5 minRisk per Trade: Position-Size FormulaRisk per trade is a practical way to describe an observable market setup, not a promise of results. Assess it on closed bars, on a specified timeframe, and in context. The key test is to define the stop-loss, invalidation condition, realistically available execution price, and acceptable risk in advance, then record every event without cherry-picking successful examples.5 minTechnical Analysis Indicators: A Map by PurposeTechnical analysis indicators are practical tools for describing observable market conditions, not a promise of results. Evaluate them on closed candles, on a defined timeframe, and in context. The key is to define the indicator period, invalidation condition, available execution price, and acceptable risk in advance, then record every event without selecting only successful examples.5 minFalse Breakout: Signs, Confirmation, and TestingA false breakout is a practical way to describe an observable market state, not a promise of results. Evaluate it on closed candles, on a defined timeframe, and within its context. The key test is to define the breakout, invalidation condition, available execution price, and acceptable risk in advance, then record every event without cherry-picking successful examples.5 minAccurate Reversal Indicator: How to Test the ClaimAn accurate reversal indicator is a practical way to describe an observable market setup, not a promise of results. Assess it on closed bars, on a specified timeframe, and in context. The key test is to define the divergence, invalidation condition, realistically available execution price, and acceptable risk in advance, then record every event without cherry-picking successful examples.5 minCryptocurrency Technical Analysis: A Step-by-Step Chart Reading ProcessCryptocurrency technical analysis is a practical way to describe observable market conditions, not a promise of results. Evaluate it on closed candles, on a defined timeframe, and in context. The key is to define the timeframe, invalidation condition, available execution price, and acceptable risk in advance, then record every event without selecting only successful examples.5 minBest Cryptocurrency Indicators: A Non-Redundant SetThe best cryptocurrency indicators are a practical way to describe an observable market state, not a promise of results. Evaluate them on closed candles, on a defined timeframe, and within their context. The key test is to define the oscillator, invalidation condition, available execution price, and acceptable risk in advance, then record every event without cherry-picking successful examples.5 minTrading Psychology: Rules Against Impulsive DecisionsTrading psychology is a practical framework for describing an observable market setup, not a promise of results. Assess it on closed bars, on a specified timeframe, and in context. The key test is to define the market noise, invalidation condition, realistically available execution price, and acceptable risk in advance, then record every event without cherry-picking successful examples.5 minLiquidity Indicator: What to Measure on a ChartA liquidity indicator is a practical way to describe observable market conditions, not a promise of results. Evaluate it on closed candles, on a defined timeframe, and in context. The key is to define trading volume, the invalidation condition, available execution price, and acceptable risk in advance, then record every event without selecting only successful examples.5 minCryptocurrency Signals: How to Check Them Before a TradeCryptocurrency signals are a practical way to describe an observable market state, not a promise of results. Evaluate them on closed candles, on a defined timeframe, and within their context. The key test is to define the false signal, invalidation condition, available execution price, and acceptable risk in advance, then record every event without cherry-picking successful examples.5 minTrend Indicator: Choose One for the Market RegimeA trend indicator is a practical way to describe an observable market setup, not a promise of results. Assess it on closed bars, on a specified timeframe, and in context. The key test is to define indicator lag, the invalidation condition, a realistically available execution price, and acceptable risk in advance, then record every event without cherry-picking successful examples.5 minRisk Management in Trading: Calculations Before EntryRisk management in trading is a practical framework for describing and controlling the risk in an observable market setup, not a promise of results. Assess it on closed candles, on a defined timeframe, and in context. The key is to define the stop loss, invalidation condition, available execution price, and acceptable risk in advance, then record every event without selecting only successful examples.5 minNon-Repainting Indicators: An Honest Signal TestNon-repainting indicators are a practical way to describe an observable market state, not a promise of results. Evaluate them on closed candles, on a defined timeframe, and within their context. The key test is to define indicator repainting, invalidation condition, available execution price, and acceptable risk in advance, then record every event without cherry-picking successful examples.5 minSupport and Resistance Levels: How to Find ZonesSupport and resistance levels are a practical way to describe an observable market setup, not a promise of results. Assess them on closed bars, on a specified timeframe, and in context. The key test is to define the breakout, invalidation condition, realistically available execution price, and acceptable risk in advance, then record every event without cherry-picking successful examples.5 minCandlestick Patterns: How to Read Candles Without Guessing the MarketCandlestick patterns are recurring combinations of opening, high, low, and closing prices. They show how the balance of buyers and sellers changed within the selected period, but they do not predict the outcome of a trade by themselves. A useful analysis takes into account the place on the chart, trend, volatility, volume, candle close, and a pre-set scenario cancellation point.9 minExternal and Internal Liquidity: How to Distinguish the LevelsIn a chart-based model, external liquidity lies beyond the boundaries of the selected range: above its structural high and below its low. Internal liquidity lies inside that range near local extremes, EQH, EQL, and other visible reference points. The classification is relative: the same level may be external to an hourly range and internal to a daily one. This is a working hypothesis, not a precise measurement of resting orders.11 minTypes of Liquidity Levels: How to Find Them on a ChartThe main types of liquidity levels on a chart are zones above prominent highs and below prominent lows, equal highs and lows marked as EQH and EQL, range boundaries, previous-day or previous-week highs and lows, and sequences of highs or lows within a compression. Treat these zones as working hypotheses and test them against context, price reaction, and available market data. A standard chart does not reveal the exact concentration of all orders.10 minPremium and Discount Zones: How to Read the Two Halves of a RangePremium and Discount zones divide a selected price range in half. The upper half above Equilibrium is Premium; the lower half is Discount. In a bullish context, traders more often look for confirmed buys in Discount; in a bearish context, they look for sells in Premium. This is a map of an area of interest, not a standalone entry signal.8 minOTE Zone: How to Find a Fibonacci Retracement AreaThe OTE zone is a deep retracement area between the 0.62 and 0.79 Fibonacci levels within a selected impulse leg. The 0.705 level marks the midpoint of this area but is not an automatic entry. First choose the correct extremes, check the structure, and wait for your own confirmation; define risk and scenario invalidation separately.8 minSwings in Trading: How to Read Swing High and Swing LowSwings in trading are prominent price turning points: local highs and lows that form the structure of the selected timeframe. An upward sequence is commonly described as HH and HL, while a downward sequence is described as LH and LL. A high or low alone is not an instruction to trade; first assess the context, confirmation, and the point’s place in the broader sequence.7 minWhat Is That Line Moving Across the Chart? Moving Averages in TradingMoving averages are lines drawn over a chart that calculate the average price over a recent number of candles. They do not show the future: they smooth out minor fluctuations and make an established direction easier to see. The longer the period, the smoother the line and the later it turns. Below, we cover period selection, the difference between EMA and SMA, and the situations where a moving average is most likely to mislead.12 minRSI Indicator vs. Midas: One Signal or a Complete Trading SystemThe RSI indicator shows one thing: whether the market is overbought or oversold. That clue is useful, but it is not a system: RSI does not see the trend, levels, or volume, and it does not tell you where to enter, place a stop, or set a target. In Midas, RSI is one of six oscillators, supported by trend, levels, volume, and liquidity. Below, we show exactly where a single line falls short and what the system adds.7 minBollinger Bands: How to Read a Squeeze, Expansion, and Price BreakoutBollinger Bands consist of a moving average and two bands set a specified number of standard deviations away from it. When price fluctuations increase, the channel widens; when they subside, it narrows. A band shows how high or low price is relative to its recent history. It is not an automatic reversal level, and a squeeze does not reveal whether the next breakout will be upward or downward.11 minOverbought and Oversold: Why an Extreme Reading Does Not Mean a ReversalOverbought and oversold are extreme oscillator readings relative to its own scale and selected period. They indicate unusually strong momentum, but they do not mark a reversal point. During an uptrend, price can remain overbought for a long time; during a downtrend, it can remain oversold. That is why traders first identify market direction, then wait for an exit from the zone or a price reaction before evaluating a trade.10 minBest TradingView Indicators: How to Choose a Set for the TaskChoose the best TradingView indicators by their role in a decision; an overall ranking is secondary. A moving average or MACD describes trend and momentum, RSI helps read the speed of a move, Bollinger Bands and ATR show volatility, and Volume or VWAP adds activity context. A chart needs only price, levels, and two or three indicators with different functions.11 minTrading Indicators for Beginners: What to Add to a ChartTrading indicators are calculations based on past prices and volume, plotted on or below a chart. They do not predict the future; their job is to show what has already happened and filter out excess noise. Two are enough for a beginner: one tracks direction and the other looks for timing, while TradingView’s free plan allows only two indicator slots anyway. This guide covers five groups, where to start, and how to keep a chart from becoming cluttered.18 minScalping Indicators: A Practical Combination Without OverloadScalping indicators are useful when each answers a separate question. EMA or VWAP show context, volume confirms participation, ATR or ADR describes the current range, and RSI or Stochastic helps choose the moment to check the reaction. The price chart and levels remain the foundation. A compact bundle of three to four different roles is usually clearer than a set of similar oscillators.11 minSupport and Resistance Indicator: Zones, Breakouts, and RetestsA support and resistance indicator marks areas where price previously slowed, reversed, or accelerated after breaking out. Support lies below the current price and resistance above it, but their roles may switch after a confirmed breakout and retest. It is more reliable to read a zone around repeated extremes than a thin line. A level alone is not a ready-made trading signal: evaluate the setup using the candle close, volume, volatility, and higher-timeframe structure.10 minStochastic Oscillator: How to Read %K, %D, and the 20/80 ZonesThe stochastic oscillator shows where the current bar closed relative to the highest high and lowest low of the selected period. %K reacts faster, while %D smooths its movement. Values above 80 and below 20 mark an extreme position within the range, but they are not a ready-made reversal command. In a trend, the oscillator can remain near the edge of the scale for a long time.10 minVolume Indicator in Trading: What It Measures and When It Can MisleadA volume indicator shows activity during a candle, but the unit of measurement depends on the market. On an exchange, it may represent shares or contracts traded; in an over-the-counter market, it may represent the number of price changes, or ticks. A single tall bar does not predict direction. Compare it with recent bars for the same instrument, venue, and timeframe, then examine what price did.11 minMACD Indicator: How to Read Momentum Without Guessing from CrossoversOn a chart, MACD measures the difference between a fast and a slow moving average. The indicator shows the direction and change in momentum through three elements: the MACD line, signal line, and histogram. A crossover means the relationship between the two averages has changed, but it does not promise that price will continue. MACD helps show acceleration and deceleration in a trend, while a range-bound market often produces a series of false reversals. Below, we examine each element and show how to test it on historical data.11 minATR Indicator: Volatility, Stop Placement, and Position SizeThe ATR indicator measures the average true range over a selected number of bars. It accounts for the standard high-low range and any gap from the previous close. A rising line indicates expanding volatility; a falling line indicates contraction. ATR does not show direction, so read it together with price structure, trend, and predefined risk.10 minRSI Divergence: How to Read Divergence Between Price and MomentumRSI divergence occurs when price and the oscillator move in different directions across comparable swing points. Price may make a new low while RSI makes a higher low; this is a bullish setup. In a bearish setup, price makes a new high while RSI makes a lower high. Divergence indicates weakening momentum, but by itself it does not confirm a reversal or define an entry point.11 min
