A trading indicator is a mathematical calculation applied to price and/or volume data, displayed visually on a chart. Indicators don’t predict the future — but they help you interpret what price is doing right now, and identify patterns that have historically preceded certain outcomes.

Trend Indicators

These help identify the overall direction of the market. Common examples include Moving Averages (EMA, SMA) and the MACD. If price is consistently trading above a rising moving average, the trend is up — simple in principle, powerful when combined with other signals.

Momentum Indicators

These measure the speed and strength of a price move. The Stochastic Oscillator and RSI are popular examples, particularly useful for identifying when a market is overbought or oversold — potential zones where a reversal may be building.

Volume Indicators

Volume is the number of contracts traded in a given period. Unusually high volume on a price move suggests conviction. The VWAP (Volume Weighted Average Price) is one of the most important intraday indicators, showing the average price weighted by volume throughout the trading day.

No single indicator is reliably profitable on its own. The real edge comes from confluence — when multiple indicators agree at the same time. A signal backed by trend, momentum, and volume is far more reliable than one backed by just one condition.

The Satdish Indicator Suite

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