Lessons › Indicators › What indicators really do
World 4 · Indicators · lesson 1 · level 2
What indicators really do
An indicator is math on old prices, so it can describe the market but it cannot see the future.
What it is
The 50-period average crossed above the 200-period average.
Your task in the app
The averages just crossed. Buy, sell, or wait?
How often it worked
| Market | Times found | Target first | Stop first | Went nowhere |
|---|---|---|---|---|
| India (NSE) | 110 | 36% | 61% | 3% |
| United States | 106 | 45% | 51% | 4% |
| Japan | 66 | 36% | 58% | 6% |
| Crypto | 1,163 | 36% | 56% | 8% |
| Forex | 138 | 35% | 59% | 6% |
| Commodities | 49 | 41% | 57% | 2% |
Counted on real past charts by the Trading Class research engine, 1,632 cases in all. Past odds, not a forecast.
Read more on the Golden cross pattern page.
Goal of this lesson: Understand that indicators are calculations on past prices and volume, and what that means for their signals.