Top 10 – Best TradingView Indicators
Step into the trading world with our handpicked selection of the top 10 best TradingView indicators. These analytical indicators play a crucial role in shaping well-informed and strategic trading choices for traders of all levels, from beginners to experts. Join us as we explore what makes these indicators powerful, understand how they work, and learn how they can boost your trade on the popular TradingView platform.
What is a Trading Indicator on TradingView?
A Trading Indicator on TradingView is a mathematical calculation or algorithm that transforms pricing data into easy-to-read visual signals on price charts, helping traders assess the best market directions, recurring patterns, and potential price movements for their trade. These signals are beneficial for flagging when to buy or sell in a trade, setting strategic trade entry and exit points, and sizing the overall market momentum.
TradingView offers a wide range of top indicators, with favorites like Moving Averages and Oscillators, tools for analyzing how much is being traded (volumes), and even indicators tailor-made by users. This versatility allows traders to customize these tools to best suit their unique trade strategies and improve their chances of a successful trade.
Below, we will explore the top 10 best Indicators used among traders.
1 - Moving Average (MA)
Due to its simplicity and effectiveness in identifying trends, the Moving Average (MA) indicator is often one of the first tools traders learn and widely apply in various markets. Serving as one of the best practical resources for traders looking to spot market trends and potential reversal points in price movement, it calculates the average trading price over a chosen period. It applies this information to the chart, effectively ironing out erratic price changes.
Have a look:
Traders do not only rely on the MA to validate trend directions – they also use it to identify where prices might find support or meet resistance and set off buying or selling alerts for their trade. Examining how the prevailing market price stands in relation to the MA line offers traders a clearer view of where things might be headed, enabling them to make more informed trade decisions.
Find additional information on the MA Indicator on TradingView here.
2 - Relative Strength Index (RSI)
While less utilized for overall trend analysis than the more versatile Moving Averages, the Relative Strength Index (RSI) indicator is also highly popular for its clear overbought and oversold signals. This popular technical indicator measures the magnitude and velocity of price changes in an asset. It gives trading insights into whether an investment is overbought or oversold, indicating the best potential reversal points. The RSI ranges from 0 to 100, with values above 70 indicating overbought trading conditions and values below 30 indicating oversold trading conditions.
Traders can use the RSI to identify potential trade entry and exit points and confirm the strength of a trend.
Find additional information on the RSI Indicator on TradingView here.
3 - Moving Average Convergence Divergence (MACD)
Slightly less intuitive than the straightforward interpretation of the RSI, the Moving Average Convergence Divergence (MACD) Indicator is another technical analysis tool traders use to identify potential trading buy and sell signals in financial markets. It is an oscillator (a tool that indicates an asset’s trend and momentum) and consists of two lines: the MACD line, representing the difference between two moving averages, and the signal line, which is a moving average of the MACD line. Traders typically look for the best bullish signal when the MACD line crosses above the signal line, and a bearish signal when it crosses below.
Take a look at the MACD in action:
Additionally, the MACD histogram, which shows the difference between the MACD line and the signal line, can provide further trading insights into the strength of market trends.
Find additional information on the MACD Indicator on TradingView here.
4 - Bollinger Bands
Expanding upon the range of tools available to traders for market analysis, Bollinger Bands indicators stand out as a distinctly visual and adaptable trading indicator on TradingView, often favored for its ability to encapsulate price volatility and trend identification in a way that complements the more momentum focused MACD and the simplicity of the RSI. This indicator comprises three lines that overlay the trading price chart - while a simple moving average (SMA) sits at the core, the surrounding two lines chart the SMA's standard deviations. These outer bands dynamically adjust according to the market's enthusiasm, expanding with extreme volatility and narrowing when things settle down – thus providing some of the best indications of extremes in volatility.
Here's what it looks like:
Traders use the Bollinger Band indicators mainly to spot when the price might be shifting direction and when it might be at an extreme high or low - what's known as overbought or oversold trading conditions. It's also a solid way to monitor the trading trend direction.
Find additional information on the Bollinger Bands Indicator on TradingView here.
5 - Volume
In contrast to the dynamic visualization of volatility and trend direction provided by Bollinger Bands, trading Volume indicators on TradingView serve as a critical metric for confirming the momentum and conviction behind trading price movements, adding another dimension to the technical analysis strategies refined by the utilization of Bollinger Bands, MACD, RSI, and other top indicators. These tools are essential for confirming the strength of trading price movements. Still, they complement rather than act as a replacement for the trend and momentum indications provided by Bollinger Bands.
The Volume Indicator is a straightforward tool that shows how much trade activity has occurred for a particular financial instrument over a specified period. It helps traders analyze the strength and stability of price movements by providing trading insights into buying and selling pressure. By displaying volume bars beneath price charts, traders can identify periods of increased or decreased activity, indicating trends or reversals.
Find additional information on the Volume Indicator on TradingView here.
6 - Stochastic Oscillator
While Volume tools serve as foundational elements for validating trading ideas by measuring market participation levels, the Stochastic Oscillator complements this data with its keen focus on momentum by assessing overbought and oversold trading conditions—offering traders on TradingView a nuanced view on potential price reversals. The Stochastic Oscillator indicator helps traders identify overbought and oversold levels in the market. It compares the closing price of a security to its price range over a specific period, typically 14 days. The indicator consists of two lines, %K and %D, which fluctuate between 0 and 100.
Traders use the Stochastic Oscillator to determine potential reversal points and generate buy or sell signals. When %K crosses above %D and both lines are in the oversold region, it suggests a buy trading signal. In contrast, a cross below %D in the overbought region indicates a sell signal.
Find additional information on the Stochastic Oscillator Indicator on TradingView here.
7 - Fibonacci Retracement
Just as the Stochastic Oscillator indicator allows traders to gauge potential turning points in the market by analyzing momentum, another popular and complementary indicator on TradingView is the Fibonacci Retracement Indicator, which provides trading insight into possible areas of support and resistance. Inspired by the celebrated Fibonacci sequence, where each number is a total of the previous two, this tool helps chart significant levels. These levels suggest places where the market may reverse its current trend and pull back or stabilize.
This indicator is particularly valuable because it offers precise, measurable levels that traders can use to fine-tune stop-loss orders, set profit targets, or choose moments to enter the market.
Find additional information on the Fibonacci Retracement Indicator on TradingView here.
8 - Average True Range (ATR)
Building on the utility of the Fibonacci Retracement's ability to define critical support and resistance levels, we turn to the Average True Range indicator (ATR), another pivotal tool that, although positioned slightly lower in popularity, offers indispensable insights into market volatility that tighten a trader's trading strategy further. The Average True Range (ATR) indicator is ideal for analyzing an asset's volatility over a defined period. While important, it may be less frequently used as a standalone indicator than others on this list. It conveys trading insights into the likely scale of price fluctuations. It is useful for determining stop-loss orders, choosing the right trade size, and identifying moments when the price might diverge notably from its customary range.
Take a look at the ATR in action:
Calculating the average of the greatest range from high to low for the current period, the distance between the current low and the previous close is the essence of the ATR. This insight gives traders a clearer view of how much an asset's price varies, which is vital information when plotting out trade moves.
Find additional information on the ATR Indicator on TradingView here.
9 - Parabolic SAR
Although the Parabolic SAR indicator (short for Stop and Reverse) gives clear trading trend signals, it is often secondary to the ATR's volatility analysis, a more crucial aspect of risk management. Nevertheless, its effectiveness as a straightforward and effective indicator is obvious – it is regularly used by traders trying to identify shifts in the market's momentum. It stands out by placing dots that can appear above and below the price chart. These dots illustrate the trend's current trajectory, whether it's swinging upwards or downwards. As prices move, these dots shift, tracing a parabolic shape to keep up with the market.
Here's what it looks like:
This indicator is quite useful for traders - it offers clear trading cues for when to jump into the market or bow out. If the dots hover below the candlesticks, the market is climbing or in an uptrend. Conversely, the dots positioned above suggest that prices are falling or in a downtrend. These straightforward signals are handy for setting up stop-loss orders and spotting potential pivot points in the price action.
Find additional information on the Parabolic SAR Indicator on TradingView here.
10 - Ichimoku Cloud
While offering an all-encompassing analysis, the Ichimoku Cloud indicator ranks last primarily for its complexity compared to the more singular focus of the Parabolic SAR, leading to a steeper learning curve and lesser immediate adaptability. Nevertheless, it is still an all-in-one technical analysis indicator that offers traders a wealth of trading insights into market behavior, including prevailing trends, potential areas of support and resistance, and moments when a trend could be about to reverse. It comprises a handful of lines overlapping with the pricing chart, forming what looks like a cloud.
Here's a snapshot:
Traders examine the interactions among the different lines of the Ichimoku Cloud to determine the best moments to initiate or conclude trades.
For example, traders using the Ichimoku Cloud look for price movements above the Cloud as a buy signal and below it as a cue to sell. A price within the Cloud suggests the price stays the same. Additionally, the Cloud's color offers insights into market direction: a green Cloud, resulting from the Leading Span A (Green Line) being above the Leading Span B (Red Line), signals an uptrend, whereas a red Cloud indicates a downtrend. The Cloud’s forward projection by 26 days also helps traders anticipate future support or resistance areas, aiding in strategic decision-making.
Beyond identifying entry and exit points, traders can use these trading insights to set up stop-loss orders that help mitigate risks. Additionally, the lines offer clues about the overall market sentiment. What stands out about this indicator is how it integrates various elements of market analysis into one unified system, making it easier for traders to make informed trading decisions and more accurately anticipate market movements.
Find additional information on the Ichimoku Cloud Indicator on TradingView here.
Let’s sum-up
From understanding the foundational trend signals provided by Moving Averages to the complexity of the Ichimoku Cloud, the top 10 best TradingView indicators provide traders with the best means to analyze and adjust to market trends and movements for their trade. Each indicator offers a unique perspective on the markets, culminating in a diverse toolkit for investors and traders. These tools have transformed decision-making processes, significantly influencing their trade's potential benefits. When these tools are used on platforms like easyMarkets on TradingView, traders get the advantage of a smooth interface, sophisticated charting capabilities, and advanced risk management options.
No matter your level of trade experience, these tools could make a substantial difference in developing a solid trade strategy best suited to your needs. The landscape of online trade changes rapidly and staying equipped with the best tools is critical to market success. Getting to grips with these top indicators is essential for any trader looking to thrive in this highly competitive market.
A Word of Caution
While these tools have their merits, improper use can lead to unfavorable trade scenarios. A trader could, for instance:
- misjudge a Moving Average indicator crossover as a sign of a trend shift when it's just random fluctuation.
- make hasty decisions by overemphasizing the Relative Strength Index based on overbought or oversold trading conditions without additional market confirmation.
- misinterpret MACD patterns or Bollinger Band volatility signals and trigger ill-timed trades.
- neglect trade Volumes and miss the bigger picture, leading to traps like fake breakouts.
- take Stochastic Oscillator readings at face value without market context and mislead.
- use Fibonacci levels without understanding market dynamics.
- mistake the Average True Range indicator’s results for trend strength.
- misread the multiple signals from the Parabolic SAR and Ichimoku Cloud.
All these mistakes can steer a trader towards ineffective decisions. Caution is always advised when using these tools.
Step into the trading world with our handpicked selection of the top 10 best TradingView indicators. These analytical indicators play a crucial role in shaping well-informed and strategic trading choices for traders of all levels, from beginners to experts. Join us as we explore what makes these indicators powerful, understand how they work, and learn how they can boost your trade on the popular TradingView platform.
Frequently Asked Questions
You can use these tools to identify trends and signals for your trade, while the easyMarkets platform offers additional tools and features for executing trades effectively, including exclusives like dealCancellation and Freeze Rate.
The information found on the easyMarkets platform is intended only to be informative, is not advice nor a recommendation, research, a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument, and thus should not be treated as such.
The reliability of these top tools can vary depending on various factors, such as the specific indicator used, the market trading conditions, and the user's trade strategy. Analyzing and testing the tools thoroughly before relying solely on them for trade decisions is essential.
While the article specifically mentions the easyMarkets platform, most can be used across different trade platforms, allowing for the best application of these tools in various trading environments.
easyMarkets Account on TradingView allows you to combine easyMarkets industry-leading conditions, regulated trading, and tight fixed spreads with TradingView's powerful social network for traders, advanced charting, and analytics. Access no slippage on limit orders, tight fixed spreads, negative balance protection, no hidden fees or commission, and seamless integration.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, are not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast, or any information supplied by any third-party.
