Indicators: MA, RSI, MACD, Bollinger
What you learn in 3 minutesThis lesson shows you what a moving average, RSI, MACD and Bollinger Bands actually calculate, so you can tell what each one can and cannot react to. On USD/INR near 83.2500, one pip on one standard lot is ₹10, so a 20 pip move is ₹200 — the same price move that one indicator flags as a breakout may be invisible to another.
One chart, four indicators, 20 pips
| Step | Amount | Note |
|---|---|---|
| Price move | 20 pips | USD/INR moves from 83.2500 to 83.2520 |
| Value of that move | ₹200 | 20 pips x ₹10 per pip on one standard lot |
| Moving average | turns up | the average of the last 20 closes starts to rise, but it lags the move |
| RSI | rises to 58 | the ratio of average gains to average losses over 14 periods, still below 70 |
| MACD | histogram grows | the gap between two moving averages widens, so the bars get taller |
| Bollinger Bands | price stays inside | the move is smaller than recent volatility, so the bands do not react |
Your broker may round the pip value, charge a spread on entry and exit, or quote USD/INR at a slightly different rate. The ₹10 per pip figure is a standard-lot calculation, not a promise of what you keep.
The mistake people make here
The common mistake is to treat all four indicators as four separate opinions on the same question. They are not. A moving average and MACD are both built from averages of past closes, so they often agree; RSI and Bollinger Bands use different arithmetic and can stay quiet while the others move. Before you act, ask what each line is made of: if two lines share the same input, their agreement is not extra evidence. Use one indicator for trend and one for volatility, then check the price itself.Check yourself
USD/INR moves 15 pips against you on two standard lots. What is the loss in ₹?
One pip on one standard lot is ₹10. Two lots is ₹20 per pip. 15 pips x ₹20 = ₹300.
A moving average and MACD both turn up. Does that mean two independent tools agree?
No. Both are built from averages of past prices, so they share the same input. Their agreement is one signal, not two.