Indicators · free lessons · live examples
Trading indicators explained (free live examples)
Nine of the most used chart indicators, explained in plain words by Kumo. Each lesson shows what the indicator is, how it is worked out, how traders read it – and what it says about Bitcoin right now, on a live chart. No jargon, no account, free.
All indicator lessons
Every card shows what the indicator says about Bitcoin right now. Tap one to learn how it works.
- Price and activitySupport and resistanceThe price “floors” and “ceilings” where buyers or sellers stepped in before.Bitcoin now: Bitcoin sits between $76,888 and $79,890
- TrendMoving averages (SMA vs EMA)A smooth line through the price that shows which way the trend is going.Bitcoin now: Bitcoin is above 1 of 3 main moving averages
- MomentumRSIA 0–100 score of how hard a market has been bought or sold lately.Bitcoin now: Daily RSI is 36.7: sellers in charge
- Price and activityVolumeHow much was traded – it tells you how many people stand behind a move.Bitcoin now: Yesterday's volume was 0.9× the 20-day average
- TrendEMA 200The famous long-term trend line: above it the big picture is up, below it down.Bitcoin now: Bitcoin is 0.9% above its daily 200 EMA
- MomentumMACDTwo averages chasing each other – it shows when a move speeds up or slows down.Bitcoin now: Daily MACD is below its signal line, below zero
- VolatilityBollinger BandsA stretchy band around the price that shows normal and unusual moves.Bitcoin now: Bitcoin is near the lower band on the daily chart
- MomentumStochastic oscillatorWhere today’s price sits inside its recent high–low range, from 0 to 100.Bitcoin now: Daily stochastic is 13: near the bottom of the range
- TrendIchimoku cloudThe Japanese “cloud” chart – Kumo’s namesake – showing trend, levels and momentum at once.Bitcoin now: Bitcoin is inside the daily Kumo cloud
Which indicator should I start with?
You do not need all nine. Most traders use two to four – and learn them one at a time.
- 1Start hereThe basics most traders look at first: where the price floors and ceilings are, which way the trend points, how strong the recent moves were and how busy the market is.
- 2NextOnce the basics feel easy: the famous long-term line, a momentum tool that tracks speeding up and slowing down, and bands that show what a normal move looks like.
- 3LaterMore moving parts: a fast momentum tool for sideways markets and the full Ichimoku cloud – Kumo’s namesake – which combines trend, levels and momentum.
The four kinds of indicators
Every indicator answers one of four questions. Pick at most one or two from each kind – tools of the same kind mostly repeat each other.
- Trend: Which way is the market going?Trend indicators smooth out the noise so you can see the direction over weeks or months.Moving averages (SMA vs EMA)EMA 200Ichimoku cloud
- Momentum: How hard is it moving?Momentum indicators measure the speed and strength of recent moves, often on a 0–100 scale.RSIMACDStochastic oscillator
- Volatility: How wild is it?Volatility indicators show how big the normal swings are right now – calm or stormy.Bollinger Bands
- Price and activity: Where and how many?Price levels show where buyers and sellers reacted before; volume shows how many people took part.Support and resistanceVolume
Try them all on the live Bitcoin chart
Press the buttons to switch indicators on and off. Kumo explains the last one you pressed.
Trading indicators FAQ
What is a trading indicator?
A calculation made from a market’s past prices (and sometimes its volume) and drawn on the chart as a line, a band or a small panel. It turns a messy chart into something easier to read, such as the trend direction or how strong recent moves were.
Which indicator is best for beginners?
Start with support and resistance and one moving average – together they show where the market is and which way it has been going. Then add RSI for momentum and volume for confirmation. One new tool at a time is plenty.
Do indicators predict the price?
No. Every indicator is made from past prices, so it describes what already happened. Traders use indicators to judge the trend, momentum and risk – not to know the future. News can change everything in minutes.
How many indicators should I use?
Most experienced traders use only two to four. Many indicators are built from the same prices and say the same thing, so adding more mainly adds clutter and false confidence.
Do indicators work on crypto, forex and stocks?
Yes. They work the same way on any chart. Crypto trades 24/7, so a “14-day” setting covers 14 calendar days, while for stocks it covers 14 trading days – almost three weeks.
Are these lessons free?
Yes. Every lesson and every live chart on Kumocast is free, with no account and nothing to install.
Written by
Alex Wu
Crypto, DeFi, perps and FX · driven by data
Alex designed the Kumocast model behind these signals, sets its rules, reviews its accuracy record and updates the methodology whenever the model changes. Signals are refreshed every 30 minutes with live market data.