otae.com

What are some common indicators used in technical analysis

Sure thing! Here are seven common indicators used in technical analysis:

**Moving Averages**: These smooth out price data to help identify trends over a specific period. You often hear about the 50-day and 200-day moving averages.

**Relative Strength Index (RSI)**: This measures the speed and change of price movements. It ranges from 0 to 100 and is used to identify overbought or oversold conditions.

**MACD (Moving Average Convergence Divergence)**: This indicator shows the relationship between two moving averages of a security’s price. It helps spot potential buy and sell signals.

**Bollinger Bands**: These consist of a middle band (a moving average) and two outer bands that represent volatility. When prices touch the outer bands, it can signal overbought or oversold conditions.

**Volume**: While not a technical indicator in the traditional sense, analyzing trading volume can give insights into the strength of a price movement.

**Stochastic Oscillator**: This compares a security's closing price to its price range over a specific period. It helps identify potential reversal points.