Top 5 Best Indicators on TradingView for Most Accurate Buy and Sell Signals

Finding a reliable buy and sell signal indicator for TradingView can transform your trading results. The right indicator provides objective, high-probability trade entry and exit points taking the guesswork out of calling market tops and bottoms.

But with hundreds of indicators to choose from on TradingView, identifying the top performers for trading signals feels overwhelming. In this extensive guide, we’ll countdown the 5 best TradingView indicators for generating accurate buy and sell signals based on historical testing and real trader reviews.

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Why Quality Trading Indicators Matter

Leading technical indicators distill raw price action into systematic and robust trading signals. The benefits of using high-quality indicators include:

  • Remove emotion by signalling entries and exits based on defined rules
  • Pinpoint high probability opportunities based on statistically backtested strategies
  • Confirm trade ideas aligned with underlying market internals and dynamics
  • Enable automation by programming algorithmic buys and sells around indicators

Rather than manually chart gazing and visually guessing entry and exit levels, the right indicator provides objective, quantifiable and profitable trade signals with greater efficiency.

Most Accurate Indicators on TradingView for Buy and Sell Signals

After extensive research, here are 5 of the most accurate and reliable TradingView indicators for generating precision buy and sell signals:

1. Moving Average Crossover

The Moving Average Crossover indicator plots two moving averages and signals crossover points. Common settings are 50 and 200-periods. Buy and sell signals include:

Buy – When the shorter moving average crosses above the longer moving average, a buy is signalled indicating upward momentum.

Sell – When the shorter crosses below the longer average, a sell is signaled suggesting downward momentum ahead.

The simplicity of moving average crossover signals makes this one of the most popular indicators used by stock, forex and crypto traders.

2. MACD (Moving Average Convergence Divergence)

The MACD indicator is based on the difference between short and long exponential moving averages plotted against a signal line. MACD signals include:

Buy – When the MACD line crosses above the signal line a buy is signalled indicating upside momentum strengthening.

Sell – When the MACD line crosses below the signal line a sell is signalled suggesting downside momentum accelerating.

As a lagging indicator, the MACD provides a very straightforward approach to following price momentum.

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3. RSI (Relative Strength Index)

The RSI oscillator measures overbought (>70) and oversold (<30) conditions in a market. Its signals include:

Buy – When RSI rises from below 30 back up towards 70, a buy signal triggers indicating oversold conditions have likely ended.

Sell – When RSI drops from above 70 down below 30, a sell signal triggers as overbought conditions reverse.

RSI identifies trend exhaustion ahead of reversals exceptionally well for timing entry and exit points.

4. Supertrend Indicator

The Supertrend indicator plots trading bands around price bars and clearly signals uptrends and downtrends. Signals include:

Buy – When price closes above the upper Supertrend line a new uptrend begins indicated by an arrow.

Sell – When price closes below the lower Supertrend line a new downtrend starts signified by an arrow.

By signalling switches between up and down trends, Supertrend provides high probability entry points consistently.

5. Parabolic SAR

Parabolic SAR plots trailing stop points that follow price. SAR flips from above to below price when the uptrend reverses into a downtrend and vice versa.

When SAR is below price, the uptrend remains intact. When SAR moves above price, the existing uptrend has reversed into a new downtrend.

Honorable Mentions

Here are a few other excellent buy and sell signal indicators on TradingView:

  • Volume Weighted MACD (confirmation from volume)
  • Price Rate of Change (fast momentum oscillator)
  • Mass Index (signals trend exhaustion for reversals)
  • Donchian Channels (breakouts outside channel bands)

Rather than relying on any single indicator, combining 2-3 that complement each other creates a robust overall signaling system.

Tips for Effective Indicator Trading

When using TradingView indicators for trade signals, keep these best practices in mind:

  • Use indicators to confirm your analysis, not replace it. Apply discretion.
  • Combine indicators together to improve signal accuracy.
  • Backtest for hundreds of trades to prove statistical edge before going live.
  • Use indicators across various timeframes from 5 minutes up to 1 day to gain a multi-perspective view.
  • Employ prudent risk management around your strategy rules.

Quality indicators augment your trading approach rather than solely dictate it. By combining indicators with robust technical and fundamental analysis, they become even more powerful trading tools.

Frequently asked questions

Q: What is the best TradingView indicator for highly accurate buy and sell signals?

A: The best TradingView indicator for highly accurate buy and sell signals is the moving average indicator.

Q: How can the moving average indicator be effectively used with other TradingView indicators?

A: The moving average indicator can be effectively used with other TradingView indicators to identify trading opportunities and improve your trading strategy.

Q: Can the moving average indicator be used for day trading?

A: Yes, the moving average indicator can be used for day trading as it helps identify buy and sell signals for intraday trading.

Q: Is the moving average indicator suitable for swing trading?

A: Yes, the moving average indicator can be used for swing trading as it helps identify buy and sell signals for short to medium-term trades.

Q: Can the moving average indicator be used for scalp trading?

A: Yes, the moving average indicator can be used for scalp trading as it helps identify quick buy and sell signals for short-term trades.

Q: How does the moving average indicator work?

A: The moving average indicator calculates the average price over a specific period of time and plots it on the chart. It helps identify the trend direction and potential support and resistance levels.

Q: What other TradingView indicators can be used with the moving average indicator?

A: The moving average indicator can be effectively used with other TradingView indicators such as the RSI (Relative Strength Index) and volatility indicator to enhance trading signals.

Q: Is the moving average indicator the best and most accurate indicator?

A: The moving average indicator is considered one of the best and most accurate indicators, but its effectiveness also depends on other factors such as market conditions and individual trading strategies.

Q: Can the moving average indicator provide buy and sell signals with stop loss levels?

A: Yes, the moving average indicator can provide buy and sell signals with suggested stop loss levels to help manage risk in trading.

Q: How can I get started using the best TradingView indicator for highly accurate buy and sell signals?

A: You can get started today by adding the moving average indicator to your TradingView platform and exploring its functionalities to identify the best trading opportunities.

Most Accurate Indicator Tradingview Conclusion

The very best TradingView indicators transform the subjective process of deciphering charts into quantifiable, rules-based buy and sell signals enabling high-probability entries and exits.

MACD, Moving Average Crossovers, RSI, Supertrend and Parabolic SAR stand out as 5 of the most accurate and reliable for generating precision trade signals. Combine them into your own strategy for potentially lucrative results.

With the right indicators, you gain an informational edge over basic discretionary traders. Follow the statistical edge proven by backtesting and over time the odds should play out in your favor.

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