The Ultimate Guide to Using Trading Indicators for Better Results

Trading successfully requires a well-structured approach, and the best way to achieve consistency is by utilizing proven technical indicators. If you are struggling with making the right trades, these golden indicators can significantly enhance your strategy. By combining these indicators with the right timeframes, you can increase your probability of making profitable trades.

The Golden Indicators You Need

These indicators provide a strong foundation for both spot trading and futures trading.

1. Resistance and Support

  • These are the fundamental concepts in trading.
  • Support is a price level where buying interest is strong enough to prevent further decline.
  • Resistance is a price level where selling interest is strong enough to prevent further rise.
  • Trading near support (buy) and resistance (sell) can help in making better entries.
  • Combine this with volume analysis to confirm breakouts and reversals.

2. Relative Strength Index (RSI)

  • Measures the strength of a stock/crypto’s price movement.
  • Above 70 → Overbought (potential sell signal).
  • Below 30 → Oversold (potential buy signal).
  • Works best when combined with support and resistance.

3. Moving Average Convergence Divergence (MACD)

  • A trend-following indicator that helps traders identify trend reversals.
  • When the MACD line crosses above the signal line, it’s a bullish signal (buy).
  • When the MACD line crosses below the signal line, it’s a bearish signal (sell).
  • Works great with RSI for confirmation.

4. Volume Analysis

  • Volume plays a key role in validating breakouts.
  • High volume on breakouts → Confirms trend strength.
  • Low volume on breakout → Indicates a possible fake move.
  • Combine with support & resistance for strong confirmations.

The Two Best Setups for Trading

Different trading strategies require different timeframes. Here’s how you should adjust your setup:

1. Futures Trading Setup

  • Best timeframes: 1 minute to 15 minutes
  • Ideal for scalping and quick trades.
  • Best indicators:
    • Resistance & Support Levels for quick reversals.
    • RSI & MACD to confirm trend strength.
    • Volume to validate the trade.

2. Spot Trading Setup

  • Best timeframes: 1 hour to 1 day
  • Suitable for long-term trades.
  • Best indicators:
    • 4EMA (Exponential Moving Averages) to track trend direction.
    • Elite Wave Theory to predict market cycles.
    • MACD & RSI for entry confirmations.

Bonus Indicators for Maximum Profits

Adding these two indicators can further refine your entries:

1. 4EMA Strategy

  • Combines 4 exponential moving averages (8 EMA, 13 EMA, 21 EMA, 55 EMA).
  • If price stays above all 4 EMAs, it’s an uptrend (buy signal).
  • If price is below all 4 EMAs, it’s a downtrend (sell signal).
  • Works best in trending markets.

2. Elliott Wave Theory

  • Helps identify the natural wave structure of the market.
  • Impulsive waves (1, 3, 5) are strong moves in the trend direction.
  • Corrective waves (2, 4) are temporary pullbacks.
  • Can be used to time entries before major moves.

Final Thoughts

By combining these indicators, you can create a powerful trading strategy that increases your probability of success. The key is to:

  1. Use multiple timeframes based on your trading style (futures or spot).
  2. Look for confluences where multiple indicators align to give a strong buy/sell signal.
  3. Always confirm signals with volume to avoid fakeouts.

Start implementing these strategies today, and watch how they improve your trading results!

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