🔍 Simple explanation of the indicators we see on the trading screen – you need to understand before entering a trade!

While I’m following a currency like $XRP, I find these indicators below the chart, and many people see them but don’t understand them, so I thought I’d explain them simply:

📉 MACD (the red and green indicator)

This gives us an idea of the market direction (upward or downward). When the green column increases and stays above the yellow line, it means that the upward momentum is strong and there’s still a chance for an upward movement.

But if the red starts to appear and grow, it indicates a potential downward trend.

📈 RSI (the one below is marked 83.57)

This is the overbought/oversold indicator. If it rises above 70, the market is entering an overbought zone (which means a correction may happen).

If it drops below 30, it indicates oversold (possible upward opportunity).

📊 OBV (which shows trading volume)

This connects price with trading volume. When the line goes up, and the price goes up with it, this confirms that the movement is strong and there’s money coming in.

🎯 Stochastic indicator (K, D, and J)

This is a bit sensitive, and it shows whether there’s an opportunity to enter or exit in the short term. When the lines enter the area above 80, it’s often an overbought situation.

✅ Summary:

Each indicator alone is not enough, but when you see more than one confirming the same thing, you can make a more confident decision.

Now that I see the RSI is very high, and the MACD is positive but close to reaching the peak, I start to think that a correction might happen soon, so if you’re entering late, be cautious.