What You Will Learn
By the end of this section, you will be able to:
- Find and add any indicator to your TradingView chart using the Indicators menu
- Set up Simple Moving Average (SMA) and Exponential Moving Average (EMA) to help you see trends
- Add and configure the Relative Strength Index (RSI) to measure momentum
- Use the MACD indicator to spot trend direction and momentum shifts
- Understand Volume and why it looks different on forex charts vs crypto charts
- Organize your indicators neatly on your chart so everything is clear and easy to read
Introduction
Welcome to the most practical part of this chapter!
You're about to add five powerful tools to your trading charts. These are the same indicators that millions of professional traders use every single day.
Here's the exciting part: You already have access to all of them for free on TradingView. You don't need to pay for anything. You don't need special software. Everything you need is already there.
These indicators are tools, not magic solutions. They won't tell you "buy here" or "sell here" with 100% accuracy. No tool can do that.
What they will do is help you:
- See trends more clearly
- Understand momentum (is the market moving strongly or weakly?)
- Spot potential areas where price might change direction
- Confirm what you're already seeing in the price action
Let's get started!
Your Five Essential Trading Tools
See the trend
Overbought/Oversold
Combined view
Conviction level
Better decisions
Topic 3.1: Navigating the Indicators Menu
Before we can add any indicators, you need to know where to find them.
Locating the Indicators Button on the Top Panel
- Open your TradingView chart Any pair is fine—let's use BTCUSD for this example.
- Look at the top toolbar Right above your chart, you'll see several icons and buttons.
-
Find the Indicators button
Look for a button that says
f(x) Indicatorsor sometimes justIndicators. It's usually in the center of the toolbar, and it might look like a small script or function symbol. Click on it.
A big menu will pop up. This is the Indicators & Strategies menu—your gateway to thousands of indicators.
Searching for Indicators by Name
When the Indicators menu opens, you'll see:
- A search bar at the top
- Categories like "Technicals," "Favorites," "Community Scripts"
- Popular indicators listed below
Just type its name in the search bar.
- Type "SMA" and you'll see "Moving Average"
- Type "RSI" and you'll see "Relative Strength Index"
- Type "MACD" and you'll see "MACD"
TradingView's search is pretty smart. Even if you type part of the name, it will usually find what you're looking for.
To add an indicator:
- Search for it by name
- Click on it from the list
- It will automatically be added to your chart
That's it! Simple.
Understanding How to Access Indicator Settings (Gear Icon)
Once you add an indicator to your chart, you'll see it appear—either on the price chart itself or in a separate panel below.
But what if you want to change its settings?
Three Important Icons for Every Indicator
Look for the indicator label at the top-left of your chart. Hover over it to see these icons appear.
Inside the settings, you can change:
- Inputs – The parameters (like the period length for SMA or RSI)
- Style – Colors, line thickness, visibility
- Visibility – Which timeframes to show the indicator on
Don't worry if this feels overwhelming right now. We'll walk through specific settings for each indicator as we add them.
To close the settings: Click "OK" at the bottom of the settings panel, or click the X in the top-right corner.
Organizing Indicators on Your Chart
Some indicators appear on the price chart itself (like moving averages), while others appear in separate panels below the price chart (like RSI and MACD).
Two Types of Indicator Placement
What they are: These overlay directly on your candlesticks
Examples: SMA, EMA, Bollinger Bands
Why useful: See trend lines and levels in relation to price
What they are: Appear in their own panel below the price chart
Examples: RSI, MACD, Volume
Why separate: Use a different scale (like 0-100 for RSI), so they need their own space
Resize panes: Between the price chart and indicator panels, you'll see a thin dividing line. Click and drag this line up or down to make the price chart bigger or smaller.
Rearrange indicators: If you have multiple indicators in separate panes, you can click and drag the indicator label to reorder them.
Alright, now that you know how to navigate the Indicators menu, let's start adding our five basic tools!
Topic 3.2: Simple Moving Average (SMA) & Exponential Moving Average (EMA)
What They Are
Moving averages are one of the oldest and most popular indicators in trading. They help you see the average price over a certain period of time, which makes it easier to spot trends.
Simple Moving Average (SMA)
The SMA calculates the average of closing prices over the last N periods. For example, a 20-period SMA adds up the last 20 closing prices and divides by 20. As each new candle forms, the oldest price drops off and the newest price is added. The average "moves" forward.
Exponential Moving Average (EMA)
The EMA also calculates an average, but it gives more weight to recent prices. This makes the EMA more responsive to new price changes. It "reacts faster" than the SMA. If price suddenly shoots up, the EMA will rise faster than the SMA.
This means they follow price—they don't predict it. Think of them like a car's rearview mirror. They show you where you've been, not where you're going. But knowing where you've been helps you understand the direction you're heading.
How Moving Averages Look on Your Chart
The 20 SMA follows price more closely. The 50 EMA is smoother and slower to react.
Why We Use Them
Moving averages help you answer one critical question: "What's the overall trend right now?"
- If price is consistently above the moving average, the trend is likely up (bullish)
- If price is consistently below the moving average, the trend is likely down (bearish)
- If price keeps crossing back and forth over the moving average, the market is probably ranging (sideways, no clear trend)
SMA gives you a smoother, steadier view of the trend. It's less sensitive to sudden spikes.
EMA reacts more quickly to recent price changes, so it can give you earlier signals when momentum shifts.
Used together, they give you a balanced view: one shows the stable trend, the other shows the recent momentum.
Moving averages are trend filters, not standalone entry signals.
Don't think: "Price crossed above the 20 SMA, so I should buy right now!"
Instead think: "Price is above the 20 SMA, so the short-term trend looks bullish. Now let me look for a good entry setup in the direction of that trend."
Hands-On Settings for Practice
Let's add a Simple Moving Average and an Exponential Moving Average to your chart right now.
- Open your BTCUSD chart Make sure you're on the 1-hour (1h) or 4-hour (4h) timeframe. This makes the moving averages easier to see.
- Add the Simple Moving Average (SMA) Click "Indicators" at the top of your chart → Type "Moving Average" in the search bar → Look for the one that says "Moving Average" → Click on it. The SMA will appear on your chart as a line overlaying the candlesticks.
- Configure the SMA settings Hover over the "MA 9" label at the top-left of your chart → Click the gear icon ⚙️ → In the Inputs tab: Change Length from 9 to 20 → In the Style tab: Choose a color that stands out (like blue or yellow) and increase line thickness to 2 or 3 → Click OK.
- Add the Exponential Moving Average (EMA) Click "Indicators" again → Search for "EMA" or "Moving Average" → Click on "Moving Average Exponential" → The EMA will appear on your chart.
- Configure the EMA settings Hover over the new moving average label → Click the gear icon ⚙️ → In the Inputs tab: Make sure Type is set to EMA and change Length to 50 → In the Style tab: Choose a different color from your SMA (like red or orange) and increase line thickness → Click OK.
Perfect! Now you have both a 20-period SMA and a 50-period EMA on your chart.
What to Observe
Now that you have both moving averages on your chart, take a moment to look at them:
- The 20 SMA is closer to price and follows it more tightly
- The 50 EMA is farther from price and moves more slowly
- When price is above both lines, the trend looks bullish (upward)
- When price is below both lines, the trend looks bearish (downward)
- When price is bouncing between the lines or crossing them frequently, the market might be ranging
Practice Exercise
Scroll back through your chart (click and drag the chart to the left). Look at the last 50-100 candles.
Ask yourself:
- When price was above the moving averages, did it tend to keep going up?
- When price was below the moving averages, did it tend to keep going down?
- When price crossed back and forth over the lines, was the market choppy and sideways?
This is how you start to "see" trends using moving averages.
Topic 3.3: Relative Strength Index – RSI (14)
What It Is
The Relative Strength Index (RSI) is a momentum oscillator that measures how strong (or weak) recent price movements have been.
It was created by a trader named J. Welles Wilder in the 1970s, and it's still one of the most popular indicators today.
Here's how it works:
- RSI ranges from 0 to 100
- The default setting is 14 periods (meaning it looks at the last 14 candles)
- Common reference levels are 30 and 70
RSI Scale and Zones
(Above 70)
(Below 30)
RSI oscillates between 0-100. Above 70 = potentially overbought. Below 30 = potentially oversold.
What Do These Levels Mean?
- RSI above 70 = Potentially overbought (the market might have moved up too fast, could pull back)
- RSI below 30 = Potentially oversold (the market might have moved down too fast, could bounce)
- RSI around 50 = Neutral (no extreme momentum in either direction)
Notice we said "potentially" overbought or oversold. That's because these levels are guidelines, not guarantees.
Why We Use It
RSI helps you answer this question: "Is the current price momentum strong or weakening?"
It's especially useful when markets are ranging (moving sideways in a channel). In a range:
- RSI near 70 might suggest price is near the top of the range (sellers might step in)
- RSI near 30 might suggest price is near the bottom of the range (buyers might step in)
Important Context
RSI can stay above 70 during strong uptrends. If you're in a powerful bull market, RSI might sit between 60-80 for days or even weeks. This doesn't mean "sell immediately!" It just means momentum is strong.
RSI can stay below 30 during strong downtrends. If you're in a strong bear market, RSI might sit between 20-40 for a long time. This doesn't mean "buy immediately!" It just means selling pressure is strong.
Always consider the broader trend context.
Hands-On Settings for Practice
Let's add RSI to your chart right now.
- Open the Indicators menu Click "Indicators" at the top of your chart.
- Search for RSI Type "RSI" in the search bar. You'll see "Relative Strength Index" appear. Click on it.
- RSI appears in a separate pane Unlike the moving averages, RSI will appear in its own panel below your price chart. You'll see a line that moves up and down between 0 and 100.
- Check the default settings Hover over the "RSI 14" label → Click the gear icon ⚙️ → In the Inputs tab: Length should be set to 14 (leave it as is) → In the Style tab: The RSI line is usually purple or blue, make sure it's thick enough to see easily (thickness 2 or 3).
- Add reference lines at 30 and 70 In the Style tab, scroll down and you'll see options like "RSI Upper Band" (70) and "RSI Lower Band" (30). Make sure these are enabled. Click OK when done.
What to Observe
Now that RSI is on your chart, take a look at it:
- When price is trending strongly upward, RSI tends to stay above 50 (sometimes above 70)
- When price is trending strongly downward, RSI tends to stay below 50 (sometimes below 30)
- When price is ranging (sideways), RSI bounces between 30 and 70, back and forth
Practice Exercise: Find a time when RSI dropped below 30. Did price bounce up? Or keep falling? What was the trend context? This will help you see that RSI is most reliable when combined with trend analysis.
Topic 3.4: Moving Average Convergence Divergence – MACD (12-26-9)
What It Is
The MACD (pronounced "Mac-Dee") is one of the most popular indicators in the world. It combines both trend and momentum information into one tool.
MACD Has Three Components
Default settings: 12, 26, 9 (standard settings that almost everyone uses)
Why We Use It
MACD helps you see both trend direction and momentum strength in one tool.
Common interpretation:
- Bullish signal: When the MACD line crosses above the Signal line (bullish crossover)
- Bearish signal: When the MACD line crosses below the Signal line (bearish crossover)
The histogram helps you see momentum changes:
- When bars are getting taller, momentum is increasing
- When bars are getting shorter, momentum is weakening
- When histogram crosses from negative to positive (or vice versa), it shows a momentum shift
MACD is also a lagging indicator, just like moving averages. It's based on EMAs, which are based on past prices. So MACD shows you what has happened, not what will happen.
A crossover alone is not a complete trading signal. You need to consider the bigger trend, price structure, and risk/reward.
Think of MACD as a second opinion, not the final decision-maker.
Hands-On Settings for Practice
- Open the Indicators menu Click "Indicators" at the top of your chart.
- Search for MACD Type "MACD" in the search bar. Click on "MACD" or "Moving Average Convergence Divergence".
- MACD appears in a separate pane You'll see two lines (MACD line and Signal line) and a histogram (vertical bars above and below zero).
- Check the default settings Hover over "MACD 12, 26, 9" → Click gear icon ⚙️ → Inputs: Fast Length: 12, Slow Length: 26, Signal Smoothing: 9 (leave as is) → Style: Adjust colors for clarity → Click OK.
What to Observe
Practice Exercise 1: Find a Recent Crossover
- Find where MACD line crossed above Signal line (bullish crossover)
- Did price go up after? What was the trend context?
- Find a bearish crossover (MACD below Signal)
- You'll notice crossovers work better when they align with the trend
Practice Exercise 2: Watch the Histogram
- Find where histogram bars are expanding (getting taller)
- Is price moving strongly? Is this confirming the trend?
- Find where bars are contracting (getting shorter)
- Is momentum weakening?
Topic 3.5: Volume (Understanding Market Participation)
What It Is – The Difference Between Markets
Volume measures how much trading activity is happening—but here's the catch: Volume works differently in different markets.
Volume: Crypto vs Forex
What it shows: Actual number of units traded on the exchange
Reliability: Very high - real, verifiable data
How to use: High volume on breakouts = strong conviction, more likely to continue
On TradingView: Visible and reliable for BTCUSD, ETHUSD, etc. from exchanges like Binance
What it shows: Usually "tick volume" (price changes), not actual traded volume
Why different: Forex is OTC (over-the-counter), no central exchange
Reliability: Limited - just a rough indicator of activity
How to use: Treat as secondary confirmation tool, not primary trigger
What Volume Looks Like on Your Chart
Green bars = volume on bullish candles • Red bars = volume on bearish candles
Taller bars = more activity and conviction
Why We Use It
Volume helps you answer this question: "How much conviction is behind this price move?"
In crypto and stocks:
- High volume during a breakout suggests strong participation → More likely to continue
- Low volume during a breakout suggests weak participation → Might be a "fake-out"
- High volume at support/resistance suggests many traders interested at that level
- Decreasing volume during a trend might suggest the trend is losing steam
In forex:
- Volume (tick volume) is less reliable
- Use it more as a confirmation tool rather than a primary signal
Hands-On Practice
- Add Volume to BTCUSD Open BTCUSD → Click "Indicators" → Search for "Volume" → Click on "Volume". It will appear in its own panel at the bottom. You'll see green bars (bullish candles) and red bars (bearish candles).
- Observe the volume Find a strong upward move. Is volume higher than usual? Find a breakout. Was there a volume spike? Find a sideways period. Is volume lower?
- Switch to EURUSD and compare Search for EURUSD → Keep Volume indicator → Notice: volume looks much lower or very different. This is tick volume, less reliable than crypto's actual volume.
In forex: Treat volume as a confirmation tool, not a primary trigger. Focus on price action, trend, and indicator confluence first.
In crypto: Volume is more reliable and actionable. Pay closer attention to volume spikes on breakouts and at turning points.
Quick Summary
Let's recap what you just learned and added to your chart:
- You know how to add indicators – Using the Indicators menu and search bar
- Simple Moving Average (SMA) and Exponential Moving Average (EMA) – 20-period SMA and 50-period EMA to see trend direction
- Relative Strength Index (RSI) – 14-period RSI to measure momentum (context always matters!)
- MACD – Default settings (12, 26, 9) to see trend direction and momentum strength
- Volume – Very reliable for crypto, less reliable for forex (tick volume)
- Indicators are tools, not magic signals – They work best when used together to confirm what you see in price action
Common Mistakes & Tips
Practice Activity (15-20 minutes)
Before moving on, take some time to practice using the indicators you just added:
Task 1: Trend Analysis Using Moving Averages
- Open EURUSD on 4-hour chart
- Is price above or below the 20 SMA and 50 EMA?
- What does this tell you about the trend?
Task 2: Momentum Analysis Using RSI
- Stay on EURUSD 4h chart
- What's the current RSI value?
- Find when RSI dropped below 30 - did price bounce or keep falling?
Task 3: MACD Crossover Practice
- Find the most recent MACD crossover
- Was it bullish or bearish?
- Did price move in expected direction?
Task 4: Volume Comparison
- Switch to BTCUSD on 1-hour chart
- Find a strong upward move - was volume higher?
- Switch to EURUSD - compare the volume bars
Task 5: Put It All Together
- Choose any chart at 4-hour timeframe
- Look at the last 20-30 candles
- Try to tell the "story" of what's been happening using all your indicators
Reflection Questions
Take a moment to think about (or write down) your answers:
- Which indicator makes the most sense to you so far? (SMA/EMA, RSI, MACD, or Volume?)
- Which indicator feels the most confusing? (That's okay—it will make more sense with practice!)
- Why do you think it's important to use multiple indicators together instead of relying on just one?
- How does understanding volume differences between forex and crypto change the way you might trade each market?
What's Next?
Fantastic work! You now have five powerful indicators on your chart, and you understand the basic purpose of each one.
In the next section, you're going to learn how to build a personalized trading workspace. You'll create a watchlist of your favorite trading pairs, save custom chart layouts, and organize everything so you can work efficiently.
You'll also learn how to use TradingView's Paper Trading feature to practice placing trades without risking any real money.
Indicators are tools that help you see what's happening in the market, but they don't make decisions for you. You still need to combine them with good risk management, a clear trading plan, and discipline.
The goal isn't to find the "perfect" indicator setup—it's to understand what each tool tells you and use them together to make better-informed decisions.
You're building real trading skills. Keep going—you're doing amazing!
Everything you're learning is for educational purposes only. Adding indicators to your chart does not guarantee profits. No indicator or combination of indicators can predict the future with 100% accuracy.
Trading forex and crypto involves significant risk. Losses can exceed deposits. Never trade with money you cannot afford to lose. Always practice extensively in demo accounts before risking any real capital.
The indicators you've learned today are widely used by professional traders, but they are tools for analysis—not magic formulas for success. Always combine technical analysis with proper risk management and a disciplined trading plan.
Consult with a licensed financial professional in your country before making any real trading decisions. Stay patient, stay disciplined, and keep learning!