In the fast-paced world of proprietary trading, especially in crypto and forex markets, indicators act as the compass guiding every professional trader’s strategy. At Hive PT, we equip traders not just with capital through our Trading Challenges, but also with the tools and knowledge to become elite performers. One of those tools? Market indicators.
In this post, we dive deep into the Top 10 Indicators Used by Professional Prop Traders — the same indicators used by those in our Elite Scaling Program and Evaluation Process. Whether you’re just learning What Prop Trading Is, or aiming to Get Funded Now, understanding these indicators can make all the difference.
1. Moving Averages (MA)
Moving Averages are a staple in every professional trader’s toolkit. They help smooth out price action and identify trends over a specific time period. Two popular types:
Simple Moving Average (SMA)
Exponential Moving Average (EMA)
Professional traders often use combinations like the 50 EMA and 200 EMA crossover strategy to identify trend reversals.
Why pros use it:
It’s ideal for confirming trends, especially during Trading Challenges, where consistency is key.
Pro Tip:
Use EMAs in shorter timeframes for crypto, and SMAs in longer-term setups for forex or stocks.
2. Relative Strength Index (RSI)
The RSI measures the magnitude of recent price changes to evaluate overbought or oversold conditions. It ranges from 0 to 100.
RSI > 70 = Overbought
RSI < 30 = Oversold
Why pros use it:
RSI helps pinpoint entry and exit points — crucial for meeting your evaluation targets in a prop trading firm.
👉 We break down technical indicators further in our Technical Analysis Essentials course.
3. MACD (Moving Average Convergence Divergence)
MACD shows the relationship between two EMAs and is used to detect changes in momentum, trend direction, and strength.
Why pros use it:
The MACD is especially useful during volatile crypto market swings. Traders in our Crypto Trading and Investing ebook master it to read trends early.
4. Volume Profile / Volume Weighted Average Price (VWAP)
Volume tells the story of conviction behind price movement. VWAP gives the average price weighted by volume.
Why pros use it:
In prop trading, volume confirms trend strength. Volume profile also shows areas of institutional interest, which can influence trade setups during challenges.
5. Bollinger Bands
Bollinger Bands consist of a middle SMA and two standard deviation lines above and below.
Why pros use it:
They indicate volatility and potential reversals. Professional traders use Bollinger squeezes to anticipate breakouts.
💡 Want to avoid common beginner mistakes? Read Common Mistakes to Avoid When Trading with a Prop Firm.
6. Fibonacci Retracement
Fibonacci levels are used to predict potential reversal levels by plotting horizontal lines at key retracement levels: 23.6%, 38.2%, 50%, 61.8%, and 78.6%.
Why pros use it:
Fibonacci is great for identifying entries after a strong trend. Many in our Advanced Technical Analysis eBook use it for high-precision trades.
7. Stochastic Oscillator
This indicator compares a particular closing price to a range of its prices over a certain period.
Above 80 = Overbought
Below 20 = Oversold
Why pros use it:
It’s highly effective in range-bound markets. Combined with RSI, it becomes a powerful confluence tool.
🔁 Learn how discipline in using these tools separates winners from the rest.
8. Ichimoku Cloud
This all-in-one indicator gives information about support/resistance, momentum, and trend direction.
Why pros use it:
Ichimoku is very visual and perfect for fast-paced decision-making. It's widely used by institutional traders and experienced prop traders alike.
9. ATR (Average True Range)
ATR measures market volatility by calculating the average of true ranges over a certain period.
Why pros use it:
It’s a vital tool for position sizing and stop-loss placement, especially when trading under evaluation in the Hive PT Evaluation Process.
👉 Want to sharpen your risk control? Check out Risk Management Techniques Every Trader Should Know in 2025.
10. Support and Resistance Zones (Price Action)
While not a technical "indicator" in the strictest sense, price action levels are the foundation of professional trading.
Why pros use it:
Price doesn’t lie. These zones are key to breakout strategies, scalping setups, and reversal trades.
🚀 Want to take your price action skills to the next level? Explore our Sirix Tutorials and MetaTrader Tutorials to learn platform-specific analysis.
How to Combine Indicators Like a Pro
Professional prop traders rarely use just one indicator. They combine multiple indicators to create confluence — a higher probability zone where multiple signals align.
Example of a Confluence Strategy:
Use 200 EMA to determine trend direction
Apply Fibonacci Retracement to identify key support
Confirm with RSI (<30 for a potential bounce)
Look for volume confirmation
Execute with a clear risk/reward setup
This approach can be practiced in your Trading Challenge account — risk-free before going live.
Bonus Tools from Hive PT for Traders
To support our traders further, we offer a full suite of resources beyond these indicators:
📚 Free Trading eBooks: Deepen your knowledge on technical analysis, crypto, and markets
📅 Economic Calendar: Stay updated on market-moving events
🪙 Crypto Calendar: Track upcoming crypto milestones
📈 Daily Technical Analysis: Start every trading day informed
💬 Join Our Discord: Connect with other Bee Traders
Final Thoughts: Indicators Alone Aren’t Enough
While these top 10 indicators are powerful, they’re not magic wands. Mastery comes from experience, proper strategy design, and emotional control. If you're just starting, read How to Build a Profitable Backtested Trading Strategy and Top Prop Trading Challenges in 2025 to strengthen your foundations.
At Hive PT, we help you grow from beginner to pro. Ready to start?
👉 Join a Challenge | Get Funded Now | Become a Bee Trader
