Once you're comfortable with MA and RSI, two more indicators add dimension: MACD for momentum and Bollinger Bands for volatility.
MACD (Moving Average Convergence Divergence)
MACD is the difference between two exponential MAs (typically 12 and 26), plus a signal line (a 9-period MA of that difference). The histogram below visualizes the gap between MACD and the signal line.
The most common signal: MACD crosses the signal line from below → bullish momentum; from above → bearish. Divergence between MACD and price (price makes a new high but MACD doesn't) is a classic early warning.
Bollinger Bands
Bollinger Bands have three lines: a middle MA (typically MA20) and two bands placed ±2 standard deviations. The bands widen when volatility rises and contract when things are quiet.
Common mistake: treating a touch of the upper band as an automatic sell. In a strong trend, price can 'walk' along a band. Combine with trend confirmation before acting.
Indicators don't predict the future, they summarize the past. Always pair them with broader market context.