Moving Averages: Moving Averages help smooth out price fluctuations and identify the underlying trend. When the price is above the MA, it indicates an uptrend, while a price below the MA suggests a downtrend. Crossovers between short-term and long-term MAs can signal potential trend reversals.
RSI: RSI helps identify overbought or oversold conditions, potentially signaling price reversals. For example, an RSI reading above 70 might suggest that a currency is overbought and due for a correction, while an RSI below 30 could indicate an oversold condition and a potential bounce.
MACD (Moving Average Convergence Divergence): MACD combines MAs to show changes in momentum and trend direction. When the MACD line crosses above the signal line, it indicates a potential buy signal, whereas a cross below the signal line may suggest a sell signal.
Bollinger Bands: Price touching the upper band suggests overbought conditions, while touching the lower band indicates oversold conditions. A squeeze (narrowing of the bands) often precedes significant price movements.
