These are some of the most commonly used trading indicators, which are typically available on trading platforms like KuCoin.
In trading, an indicator is a statistical measure of market conditions used to forecast price changes.
The below image is from Coin Gecko’s website in a tutorial about RSI, an important trading indicator.
Simple Moving Average (SMA): An average of the price over a certain number of periods (like days or hours). The formula for SMA is (A1+A2+A3…+An)/n, where A is the asset price and n is the period.
Exponential Moving Average (EMA): Similar to SMA but gives more weight to the most recent prices, making it more responsive to new information. The EMA calculation is a bit more complex; the formula includes a smoothing factor that is applied to the difference between the most recent price and the previous period’s EMA.
Relative Strength Index (RSI): A momentum oscillator that measures the speed and change of price movements. RSI is computed with the formula 100 – [100 / (1 + RS)], where RS is the average gain over the lookback period divided by the average loss over the same period.
Moving Average Convergence Divergence (MACD): A trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period EMA from the 12-period EMA.
Bollinger Bands: A volatility indicator. It consists of a SMA (middle band) and an upper and lower band, which are standard deviations away from the SMA. The standard deviation measures the amount of variability or dispersion around an average.
Stochastic Oscillator: A momentum indicator comparing a particular closing price of a security to a range of its prices over a certain period of time. The calculation involves four steps leading to the %K line, and a 3-day simple moving average known as the %D line.
Fibonacci Retracement: A technical analysis tool that uses horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before the price continues in the original direction. These levels are created by drawing a trendline between two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.
Volume Weighted Average Price (VWAP): It gives an average price a security has traded at throughout the day, based on both volume and price. It’s important because it provides traders with insight into both the trend and value of a security.
Average True Range (ATR): A volatility indicator that shows how much an asset moves, on average, during a given set of time periods. The average true range is a moving average (generally 14-days) of the true ranges.
Ichimoku Cloud: A collection of technical indicators that show support and resistance levels, as well as momentum and trend direction. It consists of five lines: Tenkan-Sen line, Kijun-Sen line, Senkou Span A line, Senkou Span B line, and the Chikou Span line.
