Tradingview indicators are additions or overlays on the chart that provide extra information on price and volume. Also, these indicators also tell you where the price is likely to go next. While some indicators give clear buy and sell signals, others need to be interpreted based on a specific strategy. Most traders that apply indicators use different types that complement each other well.
TradingView has 100+ indicators for market analysis, based on industry-standard formulas. Indicator-based analysis is used by many traders to help them make decisions on what trades to take and where to enter and exit them. Some indicators give clear buy and sell signals.
There are 4 major types of indicators. Each of these indicator groups aims to uncover insights into the future prices of the assets they are trading.
- Trend – designed to show traders and investors the trend or direction of the asset they are trading.
- Momentum – a measure of the speed at which the value of a security is moving in a given period.
- Volume – used to confirm or infirm a continuation or change in a stock direction.
- Volatility – the relative rate at which the price of a security moves (up and down). For example, a high volatility occurs when the price moves up and down quickly over a short period.