Best Tradingview Indicators Guide
When it comes to technical analysis using the Tradingview platform, a multitude of indicators can be used to help determine the direction of a stock or the market as a whole. Some of the most well-known Tradingview indicators measure the price over a specific time period, while others are based on volumes or use a range of standard deviation from a particular price to assess the volatility of a market.
In this guide, we will give you some thoughts on the best Tradingview indicators, so that you can decide which of the best financial tool is the most suitable for your specific needs.
Best Tradingview Indicators FAQ
What are the best Tradingview indicators ?
In fact, when it comes to making financial decisions, investors and traders rely on a variety of different indicators to help them evaluate the markets and make informed decisions. Some of these indicators are more effective than others at helping make money, and it’s important for investors to understand which tools are more effective so that they can choose the best Tradingview indicators for their trading or investment goals.
However, to consider some indicators as the best indicators in Tradingview , in general, can’t be a 100 % right idea. Because it depends on two main criteria:
- The trading style: Each trader has its vision and its unique strategy when trading. Hence, some investors tend to use trend tools, while others prefer volume indicators or oscillators.
- The use of the indicator: taking advantage of indicators can differ from one trader to another system. Thereby, investors will classify and evaluate indicators from their own point of view. In other words, each trader will assess the indicators according to his personal experience.
For instance, Mister A may consider an indicator as his best, while Mister B can see it as a useless one.
Chande Kroll stop indicator
Chande Kroll Stop indicator is one of the tradingview best indicators when it comes to trend-following. In fact, it is based on financial market volatility. In which, it operates as a stop for both long and short positions. To clarify, it detects protective stops thanks to the calculation of the average.
However, this indicator consists of two lines that overlaid and run across the price chart:
- A blue line represents the stop line for a long position.
- A red line represents the stop line for a short position.
In other words, traders should close buy orders when the price falls beneath the blue line. On the other hand, close sell orders when the price rises over the red line.
Hence, the main benefit of the change Kroll stop indicator for Tradingview is to keep and maintain the trade open as long as the price moves in a suitable direction.
In addition, traders tend to rely on the crossover signals when trading using this indicator. Thereby, two cases may occur:
- When the red line crosses above the blue line, then, we should expect a forex uptrend soon.
- When the red line crosses below the blue line, then, it is a signal of a potential downtrend.
Moon Phases indicator
Moon phases indicator for Tradingview is a useful technical tool that displays moon phases on the chart. In a way, dark circles will mark a full moon. On the other way, a bright circle will indicate a new moon. Nevertheless, bars between dark and bright circles will be colored as advancing or declining.
Mostly used to analyze and trade stocks, this Tradingview indicator is based on the simple principle of:
- Go long on the new moon.
- Go short on the next full moon.
To clarify, the moon phases indicator for Tradingview works depending on a simple strategy. Its strategy primarily focuses on buying stocks on the new moon and selling them during the next full moon.
As we know, stock markets have the habit of performing better when the new moon approach. There is also a weakness in the prices of the days around the full moon.
It is important to know that trading per moon phase may make a big difference. On the contrary, buying and selling on the new moon may considerately underperform the buy-hold strategy. Hence, the appearance of a new moon typically points to low energy. Whereas a full moon presents a time of high energy.
Detrended price oscillator indicator
Detrended price oscillator for Tradingview chart, as its name reflects, it is about the opposite of using a trending. Thus, the main benefit of detrending is to dismiss the noise generated by price movements. Indeed, the Tradingview detrended price oscillator indicator assists traders identify overbought and oversold conditions.
This is done by removing trends from price. However, the Tradingview detrended price oscillator indicator is not typically aligned with most current prices. It is offset to the past. In other words, it smoothes out price movements to show broader price trends.
The Tradingview detrended forex oscillator indicator attempts to identify forex trends without being very sensitive to short-term price swings. It eliminates all small market movements in order to get an overall idea about the market condition. Nevertheless, the detrending process is relatively simple, in which, we divide the present price of a security by the moving average of that price.
The detrended price oscillator indicator provides traders with several signals. We can take advantage of him in many ways. One of the most effective ways of using this indicator is using the neutral line (zero line).
The idea is that if the detrended price line is moving from below the zero-line and advancing, then, it is an indication to make a long position. Also, to hold the trade as long as the DPO line is above the neutral line. Similarly, if the oscillator moves lower and remains below the neutral line, then it denotes a sell signal. To illustrate, we can interpret those signals as shown in the example below.
True Strength Index indicator
True strength index indicator for Tradingview chart represents a technical momentum oscillator that helps traders determine tendencies and reversals. In effect, the TSI indicator appears very useful when identifying overbought and oversold markets. As well, it indicates possible price shifts through its centerline or signal line crossovers. In addition, spotting a divergence case on the true strength index indicator can provide traders with warns of trend weakness.
TSI is somewhat unique because it follows the price movements efficiently. However, as with most momentum oscillators, chartists can derive multiple signals from:
- centerline crossover.
- Signal line crossovers.
- Overbought/Oversold readings.
- Bullish/Bearish divergences.
Regardless, as a simple rule, when the TSI is positive, it indicates that the bulls are having the direction edge. Hence, the price of the underlying asset will rise. Conversely, a negative reading on the TSI means that bears control the market. Then, we will predict a price fall.
Rob Booker Reversal indicator
Rob Booker reversal indicator for Tradingview is an interesting financial tool. Created by Rob Booker and Andrew Palladino, this Tradingview instrument is built using the moving average convergence divergence and stochastic indicators. In effect, it provides traders with both buy and sell reverse signals. Which leads to more informed decisions while trading.
Thus, once you add the Tradingview rob booker reversal indicator to your chart, you will see that either a red triangle or green triangle will appear. So, it is essential to understand the reason behind these triangles. Indeed, a red triangle displays when the MACD line crosses above the zero-line and the stochastic %K shows readings greater than the overbought zone. Conversely, a green triangle appears if the MACD line crosses below the neutral line and the stochastic %K shows a value lower than the oversold zone.
In addition, it is a flexible financial tool that allows traders to specify their criteria for trading through its different inputs and parameters.
This article will provide a market overview of the best indicators for the Tradingview chart available. It will also help you to find the most suitable one for your needs. In fact, most of the day trading indicators are designed to assist you to identify specific trading opportunities. However, you should know that when trading, It is not a question of good or bad indicators, it depends also on how you will use that tool effectively.