It’s not easy to spot the signs of a possible bull run, but it doesn’t mean that you can’t try! Here are some technical indicators to help you spot the signs.
- Density Index Is A Measure Of Overall Trading Volume
If it gets too low, that could mean there is more trading volume on the way than what has happened previously. When Density Index is too high, there may be a reversal.
- Bollinger Band Is A Technical Indicator Used To Determine The Relative Volatility Of A Security
Bollinger Bands are a type of price chart that uses standard deviations to determine when the price of a stock or commodity will be volatile. When the price goes above or below the upper or lower band, it can indicate that prices will soon change direction. This indicator was created by John Bollinger. You can place Bollinger Bands above and below any indicator you want in order to get a better perspective on the stock.
- Geometric Mean Is A Technical Indicator that Measures Simple Moving Averages (SMA)
This indicator measures the average of all prices over a certain period. When this number gets too high, it can indicate that the stock is moving in a particular direction.
- MACD Line Is A Technical Indicator That Shows Direction Of Trend
It can help you spot possible reversal points or trend changes, or signals for new positions.
- Stochastic Is A Technical Indicator That Shows The Overbought Or Oversold Conditions Of A Security
Stochastic oscillator is used to spot overbought or oversold levels in a particular stock or currency.
- Volume Is A Technical Indicator Used To Determine Trend Direction
When there is an increase in volume, this tends to indicate a possible trend change or reversal point. When there is an increase in volume and price, that could also mean that the stock may be about to reverse its direction.
The bottom line is that the best way to use these indicators is to watch them in real time. You can’t take a snapshot of the stock or cryptocurrency and look at it later and try to see where it might be headed.
Always make sure you have a good trading plan in line before entering any position.
Going back to the basics is always beneficial. It’s better to know what to do if the market goes down, rather than losing money because you’re not prepared for that.