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Technical indicators are computations based on a security or financial instrument’s price and/or volume, such as a stock, currency, or commodity. Traders and investors use these calculations to assess market movements and make trading decisions; these calculations are often presented as charts or graphs.Technical indicators come in a wide variety, each with a special computation and interpretation. The following are some of the most popular technical indicators:
1. Moving averages: A moving average is a line that represents the average price of a security over a specified period of time. Moving averages are used by traders to spot trends and possible entry and exit points.
2. Relative strength index (RSI): The RSI assesses whether an investment is overbought or oversold by contrasting the size of recent gains to recent losses. The RSI is a tool used by traders to spot probable buy and sell signals.
3. Bollinger Bands: Bollinger Bands are a set of lines that are placed two standard deviations away from a moving average. In accordance with the security’s volatility, the bands get wider and tighter. Bollinger Bands are used by traders to spot probable breakouts and reversals.
4. MACD: The Moving Average Convergence Divergence (MACD) is a momentum trend-following indicator that depicts how two moving averages interact with one another. The MACD is a tool used by traders to spot possible trends and momentum shifts.
5. Fibonacci retracements: Following a strong price swing, prices are thought to typically retrace a predicted amount of their movement. Fibonacci retracements are used by traders to pinpoint probable support and resistance levels.
These are only a handful of the numerous technical indicators that traders and investors use to assess market movements and decide how to proceed with trades. It’s crucial to remember that technical analysis should be used in conjunction with other types of analysis, such as fundamental analysis and market sentiment, and that it is only one method of trading and investing.
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ASIN : B0C1J5GSHG
Publisher : Independently published
Publication date : April 15, 2023
Language : English
Print length : 34 pages
ISBN-13 : 979-8391389170
Item Weight : 5 ounces
Dimensions : 8.5 x 0.08 x 11 inches
Technical Indicators: Top 25 Technical Indicators for Traders to Understand to Become Professionals in Trading
ForexRM12.99
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