Technical indicators are essential tools for traders looking to make informed decisions in today’s fast-paced markets – they help you turn chaos into clarity. From tracking price trends and momentum to timing entries and exits, mastering indicators give you a real competitive edge.
At MySureFunds, we’ve seen funded traders level up by using these tools the right way.
Now it’s your turn.
Below, we break down the core indicators funded traders rely on at MySureFunds, and show you how to use them effectively without cluttering your charts or overcomplicating your strategy.
Start with the Basics: Moving Averages
Think of moving averages as your radar in the chaos of the markets. You can use them to filter out the noise so you can spot trends and reversals.
Simple Moving Average (SMA): Your go-to for long-term trend spotting. Keep a clear view of the market direction so you can catch major trend shifts early and position yourself for consistent gains.
Exponential Moving Average (EMA): Reacts faster to recent price changes, making it perfect for short-term strategies and timely entries.
Pro Tip: Combine EMAs with longer SMAs to confirm trend direction before entering a trade. This simple setup can help you make more informed, confident decisions.
Measure Momentum with RSI
The Relative Strength Index (RSI) is your tool for spotting when the market is overbought or oversold conditions. With a scale from 0 to 100, readings above 70 often signal overbought conditions, while readings below 30 indicate oversold levels.
Use RSI to time your entries and exits, especially in ranging markets, and combine it with other indicators, like Bollinger Bands, to increase accuracy and avoid false signals.
Watch for Breakouts with Bollinger Bands
Bollinger Bands measure price volatility, helping you spot breakouts and consolidation phases.
- Narrow bands indicate low volatility and potential breakouts on the horizon.
- Wide bands signal higher volatility, highlighting active trade opportunities.
At MySureFunds, our funded traders often use Bollinger Bands to confirm trend continuations or spot reversals.
Combine Indicators for Smarter Trades
No single indicator is perfect, but combining them can give you a clearer picture. Here are a few examples of how to combine indicators for smarter trades:
- EMA: Lock in the trend direction so you always know which way the market is moving.
- RSI: Check if the trend is overextended before making your move.
- Bollinger Bands: Measure volatility to time your entries and exits like a boss.
Pro Tip: By layering these indicators, you can minimise false signals and make more confident decisions.
Keep It Simple
One of the fastest ways to lose control in trading is cramming your charts with too many indicators. Stick to a few that fit your style, test them in different market conditions, and master them before adding more.
At MySureFunds, we champion strategies that are clean, focused, and repeatable. Many of our funded traders report success by keeping their strategies straightforward and consistent.
