THE INDICATOR BIBLE VOL.

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IF YOU DON’T KNOW, NOW YOU KNOW 
Created by: s1oop  Last Updated: Nov. 2020 

The goal here is to explain the most common indicators that are available when using 
TradingView(TV) or thinkorswim(ToS). This should help you plan and execute trades better - 
the main thing King Street tries to preach. These are referenced often around the internet, and 
many websites that aggregate or analyze stock information also reference these in many 
cases. FinViz uses Relative Strength Index and Moving Averages on their screeners 

There is a lot of information out there and the best way to learn it is through gained 
experience. I hope this guide gets you the information in a way that so many of the lazy people 
I see online crave. I urge you to actually dive deeper - learn the whys, not just the what’s and 
the how’s. 

I am not expert, this is all just information that is available elsewhere that is compiled into 
somewhat of a “cheat-sheet”. Shoutout investopedia, babypips, and YouTube. 

DISCLAIMER: There is a reason cheat-sheet is in quotes. There are no magic tools/tricks to 
winning in the market, or else everyone would be using those tools and keeping it to 
themselves, or selling you their knowledge for “a one-time deal of 500$ for this week only 
bro”. The market is educated guessing; basically gambling. If you believe that luck is when 
preparation meets opportunity, then prepare yourself for when the opportunities present 
themselves by reading this and then researching to answer your questions. 

HOW TO USE THIS GUIDE 

This guide should be fairly easy to follow, there is key info about each indicator broken down 
into various common categories that are commonly referenced when discussing stocks. 

There is also a legend to show what the symbols mean throughout the guide. Items like trader 
favorites, what to look for and avoid, tips from various members of King Street Trading 
Discord, and extra resources. 

 
 

WHAT ARE INDICATORS? 

● Tools that are used in technical analysis to help in trading/investment decision 
making - you add them to your charts to help visualize and plan trades 
● Created by smarter people than you, some are SIMPLE to understand, some are very 
COMPLEX 
● They typically track PAST movements of a stock or try to predict FUTURE movements - 
known as lagging or leading 

LEADING VS LAGGING 
The best predictor of the future is the past - right? Sometimes, but not always. 

Some indicators show you what has happened, and some try to show you what will happen. 
It’s your job to COMBINE DIFFERENT ONES, as well as with other data ( reading candles or 
“price action”, level 2, and due diligence), and help you plan and execute trades better.  

More experience using this data and learning what types of data you like to use is all about 
creating your trading “style” based on what works and doesn’t for you. 

It is difficult to organize indicators into leading or lagging, as some are a bit of both, so don’t 
get hung up on it, just try use your brain to figure out which is which, or if they are 
combinations - but the general idea is what is important here so that you don’t get too 
focused in thinking one indicator is going to always tell you what to do. 

LINK TO LEGEND 

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ADDITIONAL CONSIDERATIONS 
Volatility 

Indicators are less effective with stocks that have high volatility since high volatility means 
trends are harder to pinpoint. Volatile stocks typically have low floats. 

Understanding Divergence 

Divergence is when the price of an asset is moving in the opposite direction of a technical 
indicator. If you were to draw a trend line over the price and compare it to the trend line of a 
particular indicator and they differ in direction, this is divergence. 

LINK TO LEGEND 

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LEGEND: 
🌟  Commonly Used Indicator  👍  Rule of Thumb 

👀  What to Look For  ❗  What to Watch-Out For 

  BlehMe Note  👑  King Street Tips 

📚  Extra Homework     

TYPES OF INDICATORS 
Indicators can exist in 5 types within the LEADING vs. LAGGING view. Combine different 
types for best results to avoid false signals as each has its flaws. Different types of indicators 
can help confirm what you see from others. 

LAGGING  LEADING 
Trend (EMA, MA)  Strength (RSI, MFI) 

Mean Reversion (Bollinger Bands)  Momentum (MACD, AO,) 

  Volume (Accum/Distrib, OBV) 

MEAN REVERSION INDICATORS 

Does the price swing back to the average? 

🌟 Bollinger Bands - puts a band over a stocks price movement, price will typically move 
within these bands. There is also a moving average typically plotted and you can choose the 
time period (typically set at 20). Tracks if the market is QUIET or LOUD for a stock. 

LINK TO LEGEND 

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RULE OF 👍 : Price trends to the 

middle of bands 

Bands are skinny = low volatility = 

trading sideways = consolidation = 
possible good time to get in with 
smart money 

Bands are wide = high volatility = 

big swings in price = shit is getting 
real = plan your trades wisely 

👀 If candlestick breaks upper or 

lower band = possible breakout coming 

LINK TO LEGEND 

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TREND INDICATORS 

What is the price doing over time? 

🌟 Simple Moving Average (MA) - this is the simplest indicator there is. It’s the price 
average over whatever time you tell it you want to see. Lots of traders plot multiple MA’s 
on-top of a chart to see what is happening over various periods of time 

Exponential Moving Average (EMA) - 

same idea as moving average but 
focuses on more recent price action. 

Most people use Moving Averages 

unless more focused on recency of 
price. 

👀 Look for crossover of different 

MA/EMA lines to signify changes in 
price trend 

LINK TO LEGEND 

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RULE OF 👍 : Common setting combinations of MAs depend on your goal. If you are 

investing in shorter time frames (day trading), then you can use shorter time frame averages. 
Find your mix for your short & long term analysis and plan trades accordingly. 

👑 SHORT TERM - 8/21 & 9/30 or LONG TERM - 40/160 & 50/200 

👀 Golden Cross = when 50 day average crosses 200 day average going up, can be any time 
frame but 50/200 is the OG that is pretty much always showi 

👀 Death Cross = the opposite, when the average from a closer time-frame crosses the 
longer one in a downward direction 

Average Directional Index (ADX) - used to confirm strong trend direction, up or down. 
Combine with other indicators for best uses. 

👀 Look for ADX over 

40-50 to confirm that the 
trend is strong in an up or 
down direction 

RULE OF 👍 : Multiple ADX 

peaks confirm price trends, 
bullish or bearish. The trend 
has strength when ADX is 
above 50. The trend is weak 
or the price is trendless 
when ADX is below 20. 

LINK TO LEGEND 

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STRENGTH INDICATORS 

looks at the buying or selling pressure on the stock 

🌟 Relative Strength Index (RSI) - By far one of the most popular indicators out there. 
This is tracking if an item is “oversold” (below 30) or “overbought” (above 70). When the RSI 
gives a signal, it is believed that the market will reverse – this provides a leading sign that a 
trader should enter or exit your trades. 

RULE OF 👍 : BUY when oversold, 

SELL when overbought. If you think 
a trend is forming, take a quick look 
at the RSI and look at whether it is 
above or below 50.  

UPTREND - make sure the RSI is 

above 50.  

DOWNTREND - make sure the RSI 

is below 50. 

Money Flow Index (MFI) - Similar to RSI except that it includes volume in it’s calculation. As 
some believe volume action predicts price action, some like to use this instead of RSI as it can 
show oversold/overbought earlier than RSI, but it also can fake you out more. 

RULE OF 👍 : Trend divergence 

between indicator and price can 
mean change in price trends. 

👀 Look for overbought (>80) or 

oversold (<20) levels, but look for 

fakeouts as large volume buys can 
move it faster than RSI. 

LINK TO LEGEND 

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Stochastics - shows buy/sell cycles and signals overbought and oversold. You can change the 
settings to be “slow”, “mid” or “fast” to avoid false signals depending on stocks volatility. 

👀 Look for crossover of 

blue/red at overbought 
(>80) or oversold (<20) 
levels THEN movement 
back to middle for trend 
confirmations. 

RULE OF 👍 : Use 

combo of FAST to signal 

entries, and MID or 
SLOW to confirm them. 

👑 Change the setting for FAST to 5,3,3; MID to the standard or 21,7,7; SLOW to 21,14,14 

MOMENTUM INDICATORS 

the speed of price change over certain time frames 

🌟 Moving Average Convergence Divergence (MACD) 

This basically shows an average of 2 

averages, and can help spot a new 
trend forming. 

The two lines that are drawn are 

NOT moving averages of the price. 
Instead, they are the moving 
averages of the DIFFERENCE 
between two moving averages. 

LINK TO LEGEND 

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RULE OF 👍 : Because there are two moving averages with different “speeds”, the faster one 
will be quicker to react to price movement than the slower one. When this “crossover” occurs, 
and the fast line starts to move away (diverge) from the slower line, it often indicates that a 
new trend has formed. 

Awesome Oscillator (AO) - is an indicator that attempts to gauge whether bearish or 
bullish forces are currently driving the market. The Awesome Oscillator will fluctuate between 
positive and negative territory. A positive reading means the fast period is greater than the 
slow and conversely, a negative is when the fast is less than the slow. 

RULE OF 👍 : Buy/sell at 

histogram crosses/crosses at 0 
line. 

LINK TO LEGEND 

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Commodity Channel Index (CCI) - The CCI measures the difference between the current 
price and the historical average price, so it is a lagging indicator. When the CCI is above zero it 
indicates the price is above the historic average. When CCI is below zero, the price is below 
the historic average 

RULE OF 👍 : 

Going from negative or near-zero 

readings to +100 can be used as a 
signal to watch for an emerging 
uptrend- Going from positive or 
near-zero readings to -100 may 
indicate an emerging downtrend. 

VOLUME INDICATORS 

Add up the volume action on a stock over a given time

On-Balance Volume (OBV) - many believe volume movement precedes price movement; 
OBV is used to project when major moves in the markets would occur based on volume 
changes and where the “smart money” is going. It is calculated by summing the volume on an 
up-day and subtracting the volume on a down-day over a time period.  

As institutions begin to buy into a stock that retail investors are still selling, volume increases 
as the price is still slightly falling or leveling out. Over a period of time, volume begins to drive 
the price upward and then begins to take over as the institutions begin to sell their position 
and the retail investors begin again to accumulate their positions.  

RULE OF 👍 : Compare price and OBV lines. Price will usually follow OBV, so when it does 
not, there could be a reversal. Add a moving average over it to confirm price breakouts. If OBV 
trends up or down as prices stabilize, breakout may be coming. 

LINK TO LEGEND 

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Accumulation Distribution Indicator (A/D) - The accumulation/distribution line gauges 

supply and demand by looking at where the price closed within the period's range, and then 
multiplying that by volume. The A/D indicator is cumulative, meaning one period's value is 
added or subtracted from the last.  

● A rising A/D line helps confirm a rising price trend. A falling A/D line helps confirm a 
price downtrend. 
● If the price is rising but A/D is falling, it signals underlying weakness and a potential 
decline in price. If the price of an asset is falling but A/D is rising, it signals underlying 
strength and the price may start to rise. 

🌟 VWAP OR VOLUME WEIGHTED AVERAGE PRICE (INTRADAY ONLY) - This one is 
easy, you only apply to intra-day charts, and it is based on volume and price. 

LINK TO LEGEND 

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RULE OF 👍 : The price will 

almost always trend back 
towards the VWAP. 

👀 Look for price line or 

candles to crossover the 

VWAP to signal for trend 
changes 

LINK TO LEGEND 

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