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Unit 2 · 0/12

Understanding Indicators

RSI, MACD, Bollinger Bands, and more explained simply

Guidebook
Introduction to Indicators
Moving Averages (SMA & EMA)
RSI (Relative Strength Index)
MACD (Moving Average Convergence Divergence)
Bollinger Bands
Stochastic Oscillator
ATR (Average True Range)
ADX (Average Directional Index)
MFI (Money Flow Index)
OBV (On-Balance Volume)
Williams %R
Combining Indicators
Unit review

Unit 2 guidebook

Understanding Indicators

RSI, MACD, Bollinger Bands, and more explained simply

  1. 1

    Introduction to Indicators

    Indicators are math-based tools derived from price and volume

    4 min5 exercises

  2. 2

    Moving Averages (SMA & EMA)

    SMAs are smooth but lag; EMAs are responsive but noisy

    7 min6 exercises

  3. 3

    RSI (Relative Strength Index)

    RSI measures momentum on a 0-100 scale

    7 min5 exercises

  4. 4

    MACD (Moving Average Convergence Divergence)

    MACD shows trend direction AND momentum

    8 min5 exercises

  5. 5

    Bollinger Bands

    Bands expand with volatility, contract in calm markets

    6 min5 exercises

  6. 6

    Stochastic Oscillator

    Shows where price closed relative to recent range

    5 min5 exercises

  7. 7

    ATR (Average True Range)

    ATR measures typical price movement/volatility

    5 min5 exercises

  8. 8

    ADX (Average Directional Index)

    ADX measures trend strength, not direction

    5 min5 exercises

  9. 9

    MFI (Money Flow Index)

    MFI = RSI with volume consideration

    5 min5 exercises

  10. 10

    OBV (On-Balance Volume)

    OBV = cumulative volume flow indicator

    5 min5 exercises

  11. 11

    Williams %R

    Scale from 0 to -100

    4 min5 exercises

  12. 12

    Combining Indicators

    Use 2-4 indicators from different categories

    6 min5 exercises