What are the common technical indicators used in trading?

< 1 min read

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.