How do you choose your first technical indicator?

Most beginners add an indicator because a video told them to, not because they know what it measures. A better way: pick one, learn what it's actually calculating, and trade it on demo until you know its flaws.

How do you choose your first technical indicator? — moving average crossover diagram
A fast moving average crossing a slower one

Which indicator did you learn first?

  • what it measures, in your own words
  • how long before you understood its weaknesses
  • what you'd recommend to someone choosing today
How do you choose your first technical indicator? — risk-reward diagram
A risk-reward ratio of 1 to 2

Start with the moving averages guide or RSI — one at a time.

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