Indicators generally overlay on price chart data to indicate where the price is going, or whether the price is in an “overbought” condition or an “oversold” condition…based on past closing price technical indicator shows the trend..
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Hi,
Fibonacci retracement – The Fibonacci sequence is one of the most famous formulas in mathematics. Each number in the sequence is the sum of the two numbers that precede it. So, the sequence goes: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, and so on. Traders believe the Fibonacci series has its application in stock charts as it identified potential retracement levels. Fibonacci retracements are levels (61.8%, 38.2%, and 23.6%) up to which a stock can possibly retrace before it resumes the original directional move.
How to use it while trading stocks
First, find the recent significant Swing Highs and Swings Lows. For downtrends, click on the Swing High and drag the cursor to the most recent Swing Low. While for uptrends, do the opposite. Click on the Swing Low and drag the cursor to the most recent Swing High. When you applying the tool, the software shows you the retracement levels automatically.
You can use a Fibonacci retracement on all time frames, from monthly to intra-day.
In response to your question
For RSI- You can use the default parameters 14 days and check if it matches your risk appetite.
The 21 moving average is my preferred choice when it comes to short-term swing trading.