A: Technical indicators are tools used to analyze price movements and identify potential trading opportunities. Some common technical indicators include:
- Moving Averages (MA): Calculate the average price of an asset over a specific period, helping to smooth out price fluctuations and identify trends.
- Relative Strength Index (RSI): Measures the speed and change of price movements, indicating overbought or oversold conditions.
- Moving Average Convergence Divergence (MACD): Shows the relationship between two moving averages, helping to identify potential trend reversals.
- Bollinger Bands: Consist of a moving average and two standard deviation lines, indicating potential price volatility and overbought or oversold conditions.
- Stochastic Oscillator: Compares an asset’s closing price to its price range over a specific period, indicating potential trend reversals.