The Best TradingView Indicators You Need to Know About

Discover Top TradingView Indicators for Informed Trading Decisions

Technology has made the average trader’s job much easier, where today’s investors can get many analytics, insights and updates in one second. 

Nowadays, trading software and indicators help traders make decisions with higher accuracy. However, with the plethora of available tools, a trader must decide what suits them better. For example, TradingView is one of the most commonly used trading platforms, offering a bunch of free and premium TradingView indicators.

Choosing the right toolset depends on your strategy and style. Let’s review some of the best TradingView indicators that will help you build your trading portfolio.

Understanding Trading Indicators

Indicators are tools that traders use to expand their market knowledge and analytics through computing large datasets and historical events to present current and future price estimations.

Indicators work differently according to their type. Some use trading volume, historical price changes, number of buy/sell positions and more.

These trading tools measure several factors and use algorithms to provide easily readable information, such as lines or slopes, on the price chart.

TradingView is the go-to for many traders who want to track market movements and price action and want to draw future predictions. TradingView indicators span tens of thousands of tools built by professional traders, the community, and the platform, and they are split into four categories: free, essential, plus, and premium.

8 Best TradingView Indicators

Users can apply multiple indicators on the price chart to gain insight into potential market movements and make the right investing decisions. Let’s review some of the best TradingView indicators.

Volume

Volume is a straightforward indicator that enables investors to track market activity and the number of trades taking place at any given moment. It is represented as a bar chart under the price line.

Traders make decisions about entering or exiting the market by viewing the volume, which is usually used in conjunction with other indicators.

Relative Strength Index

The RSI index is arguably one of the best TradingView free indicators, allowing users to make fact-based decisions about whether to buy or sell securities.

RSI shows a score from 0 to 100, which gives an insight into the trader’s activity. 

• If RSI>70 = overbuying trading activity.

• If RSI<30 = overselling trading activity.

Overbuying means that increasing prices are expected to drop, while overselling means that declining prices are predicted for a recovery.

Moving Averages

The MA is a popular TradingView indicator for professionals and beginners. It is also widely available on TradingView alternative platforms due to its simplicity and usability. 

The MA indicator is used to confirm a trend strength and direction. It uses historical price data to show future projections. Trader can adjust the time periods to view predicted market action and determine their entry/exit points.

Bollinger Bands

Bollinger Bands indicator is a visual representation of price volatility and trend strength. It consists of three lines that move along the price line: upper band, lower band and middle line (simple moving average).

The bands contract and expand to represent volatility, while the conjunction between the price line and upper/lower bands reflects the price overbuying/overselling.

Stochastic Oscillator

The Stochastic Oscillator is used to identify overbuying and overselling activities and determine entry and exit points. This indicator compares the current closing price to the average of previous closing prices over a selected period to determine trend momentum.

The Stochastic Oscillator’s chart helps find reversal points to provide buying and selling signals.

Fibonacci Retracement

The Fibonacci Retracement is often used in combination with the Stochastic Oscillator to analyse price pullback values. This indicator determines the possible support and resistance levels as prices reverse after overbuying or overselling.

Traders use the Fibonacci Retracement to refine their stop-loss and take-profit levels for better risk management.

Average True Range

The Average True Range indicator is a useful tool to determine possible price fluctuations, which helps understand market volatility and stability.

It is mostly used together with another indicator to fine-tune the trading position. The ATR measures the distance between the current price low and its previous close to determine its fluctuation range.

Ichimoku Cloud

Ichimoku Cloud is more complicated as it factors multiple lines indicating price action, support and resistance levels and overbuying/overselling ranges.

The combination of these indicators forms clouds that assist traders in understanding market trends, entry and exit points, and price momentum.

How to Add Indicators on TradingView?

Finding and adding indicators with TradingView is simple. After launching the price chart, find the “indicators” button on the top bar with the drop-down list to find many free signals, financial metrics and various TradingView premium indicators to add to the chart.

Free members can add two indicators simultaneously, while subscribed users can utilise more tools to the price chart to make accurate decisions.

Conclusion

TradingView indicators provide investors with a comprehensive toolset of trading signals, charts, and insights that shape their decision-making.

While offering hundreds of customised strategies and tools, these eight best TradingView Indicators are commonly used by traders worldwide.