Hi Tribe,
Last week, volatility spiked sharply. While discretionary traders waited for “confirmation” or a “better feeling,” systematic traders acted early because the signals were already there.
They responded to volatility compression setups.
They followed predefined rules, not emotion.
Meanwhile, those relying on gut feel are still waiting for the perfect entry.
As algorithmic trading now drives ~80% of market volume, traders who want longevity need systematic approaches that adapt to changing conditions.
Here are 5 technical indicators that continue to show real value across different market regimes:
1. Pivot Points: The GPS of Price Action
Instead of drawing subjective support/resistance levels, pivot points give you mathematically derived levels that many traders monitor as liquidity pockets.
Formula: Pivot = (High + Low + Close) / 3
These levels aren’t magic, they simply highlight areas where order flow tends to cluster.
2. Oscillators: The Market's Tachometer
RSI gets the glory, but Stochastic reveals what RSI misses: Momentum shifts before they happen.
Think of it like a car approaching redline:
Green Flag: Price is rising.
Red Flag: Stochastic > 80 while price struggles to push higher
This is often an early hint that larger players may be taking profits or distributing, especially when divergence appears. It’s not a reversal by itself but it’s a clue.
3. Multi-Time Frame: The Google Maps Method
Most traders tunnel-vision one chart but markets move fractally.
Use a top-down alignment approach:
Daily (Satellite view): What’s the dominant trend?
4H (Street view): Is momentum supporting the larger trend?
15M (House view): Time the actual entry.
Across thousands of backtests, signal alignment across multiple timeframes often improves win probability not because it predicts outcomes, but because it reduces conflict between regimes.
4. Moving Averages: The River Current
The 21-EMA is widely used for short-term trend following but the institutional layer comes from combining it with VWAP — a benchmark used by funds to measure execution quality.
21-EMA: Trend direction
VWAP: Where volume-weighted capital has actually flowed
When price holds above BOTH:
The trend is often supported by stronger participants, not just retail noise.
This combination filters out a lot of false breakouts.
5. RSI + Volume — Momentum Needs Both Speed and Force
RSI alone is incomplete. Volume confirms whether momentum is actually backed by participation.
Overbought + Low Volume? = Running out of gas (Reversal imminent).
Overbought + High Volume? = Flooring the gas (Breakout imminent).
The Setup: RSI > 70 + Volume 2x Average + Price above VWAP = Momentum Continuation.
A breakout with weak volume is fragile, a breakout with strong volume is conviction.
🎯 Your Next Step: Turn Indicators Into a System
Indicators alone don’t create consistency, systems do.
You need rules that:
- define entries
- define exits
- control risk
- adapt to volatility
- remove emotional bias
These five tools form a foundation but their true power comes when you combine them into a rule-based framework.
🚀 Want to Trade Like a Quant?
Join our free Quant X Accelerator Masterclass, a 90-minute live session where we'll show you:
✔ The 3 strategies refined over 20 years
✔ How we extract real edge from the market
✔ Why most traders lose even with good strategies
✔ How to structure rules so emotion can’t interfere
To your growth,
Team Quant X - Where Data Becomes Alpha
Editor: Si Min
Disclaimer:
The views shared here are for educational purposes only and reflect our team’s opinions. They should not be taken as financial, investment, or legal advice. Please do your own due diligence before making any financial decisions.
