This chapter looks at what are called Technical Indicators. Technical Indicators are defined as, “tools that are implemented by a technical analyst to in order to determine the likelihood and direction of future price move trends.” Technical Indicators : Table of Contents Introduction Bollinger Bands MACD...
Bollinger Bands ® help you to evaluate a stock’s volatility over time. When plotting Bollinger Bands ® on a chart will see one line above and one line below the price chart of the stock. When a stock is making major price movements or is very volatile its Bollinger...
The moving average convergence divergence indicator is commonly called the MACD. The MACD is designed to find up trends and down trends in a stock via its moving averages. MACD The MACD indicator is calculated using three attribute of the stock’s price movement. Those 3...
The technical indicator called Stochastics is used to determine patterns of uptrends and downtrends in a stock’s trading pattern. The oscillation of the Stochastics shows you when a stock is nearing or within an oversold area or nearing or within an overbought area. Stochastics come...
The RSI or Relative Strength Index is a technical indicator used to find when a stock has been oversold or overbought. The RSI is usually plotted below the chart and its number always ranges from 0 to 100. As you can see from the chart...
Wait, aren’t there more technical indicators? Yes, quite a few actually. However, we have covered the most commonly used ones. So, now we hope you are ready to go out and conquer the world on technical chart analysis. While you are at it, who knows,...