Technical indicators are a valuable tool for traders. Most analysts use different indicators to make better trading decisions. The Technical Ratings tool minimizes traders’ work of evaluating technical indicators by pairing the most common indicators with their signals. In this post, we look at an overview of the uses of technical rating indicator.
What Technical Ratings Are Used For
Technical Ratings is a technical analysis tool traders use when to determine whether or not to invest in a particular trade. By combining the ratings of multiple technical indicators, this tool makes it simpler for traders and analysts to locate profitable trades. (Look at the historical prices of several stocks and trading assets on Tradinview’s charts).
The recommendations provided by the tool depend on the ratings calculated for different indicators present in it. Overall, the indicator’s rating is divided into two groups, namely SMAs and EMAs both with different sets of lengths.
Common Uses and Features of The Technical Ratings Indicator Click To TweetTips on How to Use the Technical Ratings Indicator
There are various methods that provide the final indicator rating used. These include but are not limited to:
- All Moving Averages: Sell when the moving average value is greater than the price, and buy when the MA value is lesser than the price.
- Commodity Index Channel: Buy when the indicator is less than -100 but rising and sell when it’s greater than 100 and falling. Neutral means you should not sell or buy
- Relative Strength Index: Buy when the indicator is less than 30 but rising and sell when the indicator is greater than 70 but falling. Neutral means you shouldn’t buy nor sell
- Stochastic: Buy when the main line is less than 20, and it crosses above the signal line, while sell if the main line is greater than 80 and it crosses below the signal line. Neutral indicates neither buy nor sell.
- Average Directional Index: Buy if the indicator is less than 20, and sell if the indicator is less than 20. Neutral means you should neither buy nor sell
- Momentum: Buy when the values on the indicator are rising and sell when values are falling. At neutral, you should never buy or sell
Note that you should never depend on the Technical Rating Indicator recommendations alone. The ratings only indicate the satisfaction of specific conditions that may help identify the right opportunities to transact.
Technical Ratings are the present and future of trading. Contact us today for more information on how Technical Ratings Indicator can help with your trading business.