TradeIQ
Discover three top trading view indicators for predicting market trends and making smart decisions in 2023 and beyond, including the volume diversions indicator, super Bollinger Trend, and RSI trend lines with breakouts, which offer a visual aid for finding breakouts on the RSI. These tools are best used in conjunction with other trading strategies and require backtesting and forward testing before trading live.
Top 3 Buy and Sell Trading View Indicators for 2023 and Beyond
Introduction
As a Trader, it is essential to have reliable tools and indicators to predict market trends and make informed decisions. In this video, we will discuss the top three buy and sell trading view indicators that will give you an edge in trading. These indicators are suitable for both experienced traders and beginners. So, let’s get started.
1. Volume Divergence Indicator
The Volume Divergence Indicator or VDI is a powerful tool that helps traders identify potential price reversals in the market by analyzing volume data. This indicator compares the direction of the price trend with the direction of the volume trend. The VDI has several features, including divergence signals, volume spikes, volume contractions, and volume trend signals.
The underlying principle of the VDI is that the volume of trades should generally correlate with the direction of the price movement. For instance, in a healthy uptrend, volume should increase as prices rise, signifying growing buyer interest. Similarly, in a healthy downtrend, the volume should increase as prices fall, suggesting growing selling pressure.
However, if the price is rising, but the volume is falling, this is called bearish divergence. It can signal that the uptrend is losing momentum and may soon reverse. Conversely, if the price is falling, but the volume is rising, this is called bullish divergence. It can indicate that the downward trend might soon reverse.
While the VDI is a valuable tool, it is not foolproof and can sometimes produce false signals, especially in a trending market. Therefore, it is most effective when used in conjunction with other tools and trading strategies.
A recommended strategy is to combine the VDI with a machine learning moving average by Zion. This strategy is suitable for day trading and scalping with time frames of 5, 15, and 30 minutes.
2. Super Bollinger Trend Indicator
The Super Bollinger Trend or CBT indicator is a combination of two popular technical analysis tools, Bollinger Bands, and Super Trend. This indicator combines trend recognition with volatility analysis to provide valuable insights into potential trend changes. It recognizes that high volatility levels often accompany strong price momentum that can result in a formation of new trends or the continuation of existing ones.
High volatility can result in more dramatic price fluctuations that may lead to sharp trend reversals. For instance, a sudden increase in volatility can cause a bullish trend to transition into a bearish one or vice versa. Therefore, higher volatility levels can increase the likelihood of breakouts as they indicate stronger market momentum and increase the buying or selling pressure.
The CBT indicator consists of the Zigzag, Super Trend line, and buy and sell signals. The recommended strategy is to sell when the price pulls back to the faster simple moving average (SMA), and the indicator prints a sell signal. Also, the faster SMA must be positioned below the slower SMA, and you exit the trade when a green triangle appears on the chart. This indicator is more effective when used with other tools and trading strategies.
3. RSI Trend Lines with Breakouts Indicator
The RSI Trend Lines with Breakouts is an advanced tool that provides traders with a visual aid for finding breakouts on the Relative Strength Index (RSI). This script uses its own pivot-based system that checks for real-time swing levels and triggers a new pivot event after every dip or new all-time high.
When the RSI breaks above the trend line, a buy label is printed, and a sell label is shown when the RSI breaks below the trend line. To increase the accuracy of signals, it is recommended to set the look back range to 10 and disable repainting. The color of the labels and lines can also be adjusted.
The RSI Trend Lines with Breakouts can be used with multiple additional tools such as Lux Algos supply and demand, and visible range. A recommended strategy is to buy at demand and sell at supply. For instance, buy when the price bounces off the demand level and the RSI gives a buy signal. The target should be at least one to two risk-reward ratio, and for short trades, wait for the price to bounce off the supply level, and the RSI must give a sell alert.
Conclusion
In summary, these are the top three buy and sell trading view indicators for 2023 and beyond. They are the volume divergence indicator, super Bollinger Trend indicator, and RSI trend lines with breakouts indicator. While these indicators are powerful tools, it is essential to remember that they are not foolproof and should be used alongside other trading strategies for optimal results. So, give these indicators a try, backtest and forward test them before trading live.
