RSI

Day trading relies heavily on technical indicators, serving as the fundamental building blocks for successful trading endeavors. Proficient traders, even those within large financial institutions like Wall Street banks, universally utilize these indicators. Yet, for new traders, these indicators may initially appear intricate and bewildering. However, the key lies not in understanding their intricate calculations but rather in mastering their optimal usage.

Key events: Eurozone - EU Leaders Summit USA - S&P Global Services PMI (Dec) On Thursday, US stocks experienced an upward surge, building on the strong gains from the previous session. This was prompted by the Federal Reserve's indication of upcoming interest rate cuts in the next year, along with a rebound in retail sales. The Dow Jones Industrial Average showed a 105-point increase, equivalent to 0.3%. The S&P 500 index traded 24 points, or 0.5%, higher, while the NASDAQ Composite climbed by 88 points, or 0.6%.

 Divergence is a strong signal in forex, trading which can show the upcoming market changes. At the least, divergence signals can indicate a correction. At most, they can signal a market reversal. When a trader sees the divergence signs, it means they should get ready for placing sell orders.

The MACD and RSI trading strategy is highly popular among new traders and scalpers. Its simplicity and amount of trading signals make it a versatile approach to trading forex. Another benefit is the ease of developing an expert advisor (EA) in MT4 using the MQL4 editor that comes together with the MT4 installation. Alternatively, traders may find it in the marketplace either for free or at a small cost. Since the MACD and RSI trading strategy is a straightforward trading strategy, there is no risk of an EA not functioning as coded, and traders can test it in a demo account.