Technical Indicators - A Primer
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Ray Buchner
Technical Indicators – A Primer

The most basic is called the moving average which includes a very simple mathematical formula which gives a clear analysis of the average price of any commodity or security during a given time. With them, you will find it easy to spot the existing trends.

Below are the four major groups of the technical indicators.

Volatility indicators. Included in this category is the projection oscillator, Bollinger bands, trading bands, average true range, and many more.

Momentum indicators. Part of this group is the commodity channel index, RSI, Stochastic oscillator, Chande momentum oscillator, and many more.

Trend indicators. Parabolic SAR, MACD, forecast oscillator, and linear regression are among them.

Volume related indicators. Among them is the demand index, ease of movement, OBV, and Chaikin money flow.

Why do you really have to make use of these technical indicators? Well, you don’t.  But they are a great tool for your tool box if you dedicate some time to leaning them.  These signals can open up chances for you to discover the areas that closely work alongside the current trends. These tools enable you to look into the direction or behavior of the trend that is in the current market.

Just take note that anything can happen in the stock market. It is by and large very much unpredictable. At one point in time this is the existing trend while at any time of the day, the latter will change course. Therefore, use the indicators as your guide but never leave out your capacity to make smart choices.

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