> ## Documentation Index
> Fetch the complete documentation index at: https://docs.ezorro.app/llms.txt
> Use this file to discover all available pages before exploring further.

# Technical Indicators Made Simple

> Learn how RSI, MACD, moving averages, and other technical indicators can be applied to automated trading. Transform market data into structured trading signals.

Technical indicators help traders interpret market conditions and trends. eZorro AI makes it easy to incorporate these tools into strategies through simple natural language commands.

<Card title="Use Technical Indicators" icon="rocket" href="https://platform.ezorro.app">
  Implement RSI, MACD, moving averages, and other indicators in your strategies using natural language.
</Card>

## Key Technical Indicators

<CardGroup cols={2}>
  <Card title="Moving Averages" icon="chart-line">
    Highlight price trends by smoothing out daily fluctuations. For example, a Golden Cross (50-day above 200-day) is often viewed as a potential trend shift.
  </Card>

  <Card title="RSI" icon="wave-square">
    Measures momentum on a 0–100 scale. Below 30 is commonly considered oversold, above 70 overbought.
  </Card>

  <Card title="MACD" icon="chart-line-up">
    Tracks momentum through moving average relationships. Often viewed as bullish when MACD crosses above its signal line.
  </Card>

  <Card title="Bollinger Bands" icon="expand">
    Provide dynamic support and resistance levels based on volatility. Prices approaching bands may indicate market extremes.
  </Card>
</CardGroup>

## How to Use Indicators

<Steps>
  <Step title="Choose Your Indicators">
    Start with 2–3 complementary indicators: moving averages for trend, RSI for momentum, and volume for confirmation.
  </Step>

  <Step title="Set Clear Rules">
    Define conditions explicitly: "Buy when 20-day MA crosses above 50-day MA AND RSI is below 60."
  </Step>

  <Step title="Test Your Combinations">
    Backtest indicator combinations to understand how they might behave under different market conditions.
  </Step>
</Steps>

## Example Indicator Combinations

<CardGroup cols={2}>
  <Card title="Triple Confirmation" icon="shield-check">
    "Buy when price above 50-day MA, RSI below 60, and MACD turns bullish." Designed to add layers of confirmation.
  </Card>

  <Card title="Trend + Momentum" icon="chart-mixed">
    "Buy on moving average crossover with volume confirmation." A common trend-following approach.
  </Card>

  <Card title="Mean Reversion" icon="arrows-spin">
    "Buy when RSI below 30 and price touches lower Bollinger Band." Often applied in sideways markets.
  </Card>

  <Card title="Breakout System" icon="arrow-trend-up">
    "Buy when price breaks above Bollinger Bands with 2x volume." Seeks to capture potential breakout moves.
  </Card>
</CardGroup>

## Common Indicator Settings

<CardGroup cols={3}>
  <Card title="Moving Averages" icon="chart-line">
    20/50/200-day periods for short, medium, and long-term analysis. Golden Cross (50 above 200) is one common signal.
  </Card>

  <Card title="RSI Settings" icon="sliders">
    Standard 14-period with 30/70 thresholds. Some traders use 20/80 in trending markets.
  </Card>

  <Card title="MACD Parameters" icon="chart-line-up">
    12/26/9 standard settings. Focus on crossovers and histogram direction.
  </Card>
</CardGroup>

## Market-Specific Applications

<Steps>
  <Step title="Trending Markets">
    Moving averages, MACD, and ADX are often used to evaluate trends with longer periods.
  </Step>

  <Step title="Ranging Markets">
    RSI, Stochastic, and Bollinger Bands can be used to identify overbought or oversold conditions.
  </Step>

  <Step title="Volatile Markets">
    ATR for risk assessment, Bollinger Bands for dynamic ranges, and volume indicators for confirmation.
  </Step>
</Steps>

## Get Started

<Card title="Implement Indicators" icon="rocket" href="https://platform.ezorro.app">
  Start applying technical indicators in your strategies. Tell our AI which indicators you want and it will handle the setup.
</Card>

## Next Steps

<CardGroup cols={2}>
  <Card title="Strategy Construction" icon="hammer" href="/technical/strategy-construction">
    Learn how to build complete trading strategies using technical indicators.
  </Card>

  <Card title="Backtesting" icon="chart-bar" href="/technical/backtesting">
    Test your indicator-based strategies on historical data before using them live.
  </Card>

  <Card title="Beginner Strategies" icon="graduation-cap" href="/trading-strategies/beginner-strategies">
    See how technical indicators are applied in beginner-friendly strategies.
  </Card>

  <Card title="Risk Management" icon="shield" href="/trading-strategies/risk-management">
    Use ATR and other indicators to help manage trading risk.
  </Card>
</CardGroup>

***

<sub>⚠️ Trading involves risk, including the possible loss of capital. eZorro does not guarantee profits or eliminate the risk of trading losses.</sub>