RSI, MACD, CCI and Parabolic SAR, explained
Indicators turn past prices into a single line or number that is easier to compare across markets. The Tralyzer crypto screener shows four of them for 20 markets at once. Here is what each measures and how traders usually read it.
RSI (Relative Strength Index)
RSI compares the size of recent rises with recent falls and scales the result from 0 to 100, usually over 14 candles. Above 70 is commonly called overbought and below 30 oversold. In a strong trend RSI can stay overbought or oversold for a long time, so a high RSI alone is not a reason to sell. Traders pay more attention to divergence: the price makes a new high while RSI makes a lower one, a sign the move is losing strength.
MACD (Moving Average Convergence Divergence)
MACD is the difference between a fast and a slow moving average of the price, usually 12 and 26 periods, with a 9-period average of that difference as the signal line. MACD crossing above its signal line suggests momentum turning up; crossing below suggests it is turning down. Being above or below zero shows whether the faster average is above the slower one, a simple read of trend direction. MACD reacts late by design, so it confirms moves rather than predicting them.
CCI (Commodity Channel Index)
CCI measures how far the price is from its own average, scaled by how much it normally varies. Readings above +100 mean the price is unusually high compared with its recent behaviour, and below −100 unusually low. Some traders use moves back inside the ±100 band as early signs of a turn; others use strong readings as confirmation of a breakout.
Parabolic SAR
Parabolic SAR (stop and reverse) draws a dot below the price in an uptrend and above it in a downtrend. The dots move closer to the price as the trend continues, and when the price crosses them they flip to the other side. Traders use it to follow a trend and as a trailing stop. It works well in clear trends and gives many false flips when the market moves sideways.
Using them together
- Use one indicator for trend (MACD or SAR) and one for stretch (RSI or CCI), not four that say the same thing.
- Check readings on the timeframe you actually trade; a 15-minute oversold reading means little inside a daily downtrend.
- Let indicators confirm a plan built on price levels, such as support and resistance, rather than replace it.
Tralyzer shows market information, not financial advice. You decide and place every trade yourself, crypto prices move fast, and you can lose money.