📊 How to Use Indicators on Deriv (MACD, RSI, Bollinger Bands)
Trading without indicators is like driving without a map. On Deriv.com, you can use powerful tools like MACD, RSI, and Bollinger Bands to make smarter trading decisions. In this guide, we’ll explain each indicator in simple terms, show you how to apply them, and give real examples.
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📌 What Are Trading Indicators?
Trading indicators are tools applied to price charts that help traders analyze trends, momentum, and volatility. On Deriv platforms like DTrader or DMT5, you can add indicators easily and customize them to fit your strategy.
📈 1. Using MACD (Moving Average Convergence Divergence)
The MACD shows the relationship between two moving averages (fast and slow). It helps you spot trend changes and momentum shifts.
How to Use MACD on Deriv:
- When the MACD line crosses above the signal line → It’s a buy signal.
- When the MACD line crosses below the signal line → It’s a sell signal.
- Use the histogram (bars) to see the strength of momentum.
📌 Example:
If you’re trading on DTrader and the MACD crosses above the signal line while the histogram is positive, it’s a strong indication of an upward trend.
📉 2. Using RSI (Relative Strength Index)
The RSI measures if an asset is overbought or oversold. It ranges from 0 to 100.
How to Use RSI on Deriv:
- RSI above 70 → The market is overbought, possible reversal down.
- RSI below 30 → The market is oversold, possible reversal up.
- RSI around 50 → Neutral zone, no strong signal.
📌 Example:
Suppose you’re trading Synthetic Indices. If RSI drops to 25, it suggests the market is oversold and may bounce back soon → you could prepare for a potential buy trade.
📊 3. Using Bollinger Bands
Bollinger Bands measure volatility using three lines: a middle moving average and two outer bands.
How to Use Bollinger Bands on Deriv:
- When price touches the upper band → The asset might be overbought.
- When price touches the lower band → The asset might be oversold.
- When bands are narrow → Low volatility (market is quiet).
- When bands are wide → High volatility (market is active).
📌 Example:
Imagine you’re trading on DMT5. If the price keeps hitting the upper band while RSI is above 70, it’s a strong sign of an overbought market → consider a sell trade.
🛠️ Pro Tips for Using Indicators
- Don’t rely on just one indicator — combine MACD, RSI, and Bollinger Bands for confirmation.
- Always practice on a demo account first before trading live.
- Use indicators with risk management like stop-loss and take-profit.
- Focus on learning one strategy at a time to avoid confusion.
🎯 Final Thoughts
Indicators like MACD, RSI, and Bollinger Bands are powerful tools to improve your trading on Deriv. By understanding their signals and applying them with discipline, you can trade smarter and reduce risks.
👉 Start practicing now on Deriv’s demo account: Open your free Deriv account here
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