5 Best Webull Indicators in 2023
As more people jump into trading or investing, the demand for indicators has increased.
Indicators are very popular technical analysis tools, and holds a top spot among excellent tools to let traders and investors guide whether to buy or short.
If you’re trying to choose the best indicators for trading and investing, here are some of the best indicators we recommend.
- Volume-Weighted Average Price (VWAP): The Best Indicator for Volume
- Exponential Moving Average (EMA): The Best Indicator for Trend
- Bollinger Bands (BOLL): The Best Indicator for Mean Reversion
- Relative Strength Index (RSI): The Best Indicator for Relative Strength
- Moving Average Convergence Divergence (MACD): The Best Indicator for Momentum
Best Webull Indicators
1. Volume-weighted Average Price (VWAP): The Best for Volume
If you’re a beginner who is just dipping your toes in the waters, the volume-weighted average price (VWAP) is a must have. The volume-weighted average price is the best indicator for volume for many traders, as it may indicate that the price of a stock is being bought or sold.
By the way: If you want an example how to trade the VWAP indicator, you can take a look at this article, “Understanding EMA & VWAP for Option Traders: The Ultimate Beginners Guide in 2023“.
2. Exponential Moving Average (EMA): The Best for Trend
Trading, especially day trading, can be tricky. Day traders need an indicator the best helps knowing where the trend may be for a stock. The exponential moving average is the best indicator for knowing the trend as it relies heavily on recent price action movement.
By the way: If you want an example how to trade the EMA indicator, you can take a look at this article, “Understanding EMA & VWAP for Option Traders: The Ultimate Beginners Guide in 2023“.
3. Bollinger Bands (BOLL): The Best for Mean Reversion
If you’re a mean reversion trader, and you’re looking for the best indicator to help you with your trades, than the Bollinger Bands indicator should be the one to look at.
As a mean reversion trader, you’re looking for stocks that are over extend on one side, and need to go back to their average price action level.
4. Relative Strength Index (RSI): The Best for Relative Strength
The relative strength index (RSI) is the best relative strength indicator, as it helps traders and investors know if the stock is outperforming or underperforming from the rest of the market.
The RSI plots a line graph from 0 to 100. When the line graph is sitting at 50, it shows that it hasn’t received any relative strength for a direction.
An RSI above 50 to 70 is a good sign of bullish strength, and below 50 to 30 is a good sign of bearish strength.
5. Moving Average Convergence Divergence (MACD): The Best for Momentum
The moving average convergence divergence (MACD) is a traders favorite momentum indicator as it helps traders determine where the momentum of a stock is going.
The MACD will show display green and red histogram. When the bars are green that means, the momentum is bullish and the red bars indicate a bearish momentum.
The Bottom Line
The trader should not be overly-reliant on a single indicator, and should be paired with another best indicator from a different category, including with other technical analysis, and market conditions, to make the best trading decision.
Other Webull Favorite Indicators
VP: Volume Profile
The Volume Profile was a feature added to the Webull Desktop application version 6.5.0.
Shows a histogram on the right side of a chart. Each row represents a significant price levels based on volume.
The useful part about this indicator is that it can show where there’s low volume gaps. When their’s low volume gaps, price action tends to moves nicer.
Here’s a good example of a gap fill trade.
Once price action on Target (TGT) went above $161.30, the price went as high as $164.43.
How to Configure Volume Profile
The most common configuration is to have a row size of 20, and a value area percentage of 100.
SuperTrend
The SuperTrend indicator on Webull is another powerful indicator that gives you a buy and sell signal by using up and down arrows.
A colored red down arrow in SuperTrend indicator is a sell signal. This shows when the price goes below the SuperTrend line.
A colored green up arrow in SuperTrend indicator is a buy signal when the price goes above the SuperTrend line.
The SuperTrend indicator is best to view on a daily or greater timeframes. Now this begs to ask the question, “Is this a reliable indicator?”
The SuperTrend indicator is sort of reliable. If you’re swing trading a stock months out, this may be a useful indicator on Webull.
Where it becomes reliable is during consolidation trading days. If you’re trading a options, this can eat away at premium. Another reason that the SuperTrend indicator is not super reliable is that it’s a lagging indicator.
If you’re trying to get as close to real-time, the SuperTrend indicator is not that.
