We’ll go on to a first indicator now which is the RSI
We’ll start with the RSI

*R.S.I (RELATIVE STRENGTH INDEX)*
The R.S.I is a popular indicator used by a lot of traders, it’s very straight forward.
It is used to identify reversal points in the market.

How it works;
The R.S.I is scaled from 0 to 100 from bottom to top. When the R.S.I line crosses above the 70 mark
towards 100, it indicates overbought(the market has been buying, and there are not enough bulls in the market anymore, and the market is set to reverse). when it crosses below the 30 mark towards 0, it
Indicates over sold (the market has been selling, and there are not enough bears in the market anymore, and the market is set to reverse).

How to trade with the R.S.I
When the R.S.I line crosses the 70 mark towards 100 it shows a sell opportunity, and when it crosses the
30 mark towards 0, it shows a buy opportunity

You buy at point 1 becauased the market has over sold and the buyers are about to take control

Then you sell at point 2 because the market has over bought which indicates the seller about to take control of the market

Bollinger band
Bollinger band is used to measure market volatility.

How it works;
The bollinger band expands when there is high volatility and contracts(closes up) when there is low volatility in the market.
Looking at the diagram below, we can see that the bollinger band closes for some time and then expands.

The bollinger band has uses such as;

•The bollinger band can used to detect early move in the market.
Looking at the diagram, you’ll notice that a candle broke above, you’ll also notice an expansion in the
bands, as the band expands it indicates potential trend change. with this, you can be able to tell the direction of the trend on time.

•The bollinger band can also be used as support and resistance
The upper band can be used as resistant line and the bottom line can be used as support.

1: support
2: resistance

Further explaining how It can be used to identify new trend, looking at the diagram below, you can see that the breakout and expansion of the band helped in identifying a new trend after ranging for a while.

So basically the bands expands when there is a potential change in trend

How to trade the bollinger band

1. In a ranging market
Using the band as support and resistance;
when a candle gets to the top line, you sell.
When the candle touches the buttom line, it is time to buy.

Buy at 1
Sell at 2

2. In identifying new trend
when a candle breaks *above* the band and the band expands, it means that it is time to buy as it forms a new trend, when a candle breaks *below* the band and the band expands, it means that it is time to sell as it forms a new trend.

The diagram above shows a downtrend after a break below

If you had entered at the break you would have caught some pips

Now remember,there are two main ways to trade breakouts: the aggressive way and the safe
way.
The Safe way; it involves after a break, you wait for a retest.
The aggressive way; it involves placing a trade as soon as a breakout occurs.

Parabolic SAR
Unlike other Indicators, parabolic SAR is used to trend stop and reversal points
One indicator that can help us determine where a trend might be ending is the Parabolic SAR (Stop And
Reversal). A Parabolic SAR places dots, or points, on a chart that indicate potential reversals in price movement.

How it works/ How to trade with parabolic SAR
When the dots are below a candle, it indicates that a down is ending and an Uptrend is to follow , and when the dots are above a candle, it indicates that an uptrend is coming to an end and a downtrend is to follow.

So how then do you trade with the parabolic sar, it’s easy

When the dots are below a candle buy, and
When it’s above, sell