Technical Analysis Indicators

A tool traders can use in order to step up their trading game
100+ Indicators
When it comes to technical analysis tools, the trading industry has a lot to offer. Most indicators can be used to analyze the performance of all assets and on all timeframes. Trader often turn to them in order to make more informed and professional decisions. Indicators are so numerous that in order to navigate them, they have to be divided by their type. All technical analysis indicators fall into one of the following categories: momentum, trend, volatility, moving averages, volume and other. Thanks to the clean and intuitive interface, they are also easy to set up and use, even by novice traders.

There are a lot of myths surrounding technical analysis. Some people believe that everything technical is actually a hoax, others tend to believe that it is the ultimate answer to all questions a trader can ever have. In reality, technical analysis is another tool a trader can use in order to step up his trading game and get a competitive edge against the market, nothing more, nothing less.

Momentum

Momentum indicators asses market dynamics.
Indicators of this type can tell you when the market is overbought or oversold. How can you use this information? Markets work in cycles. After a prolonged buying spree, a depreciation can be expected. And vice versa. In trading both the trend direction and trend strength matter. Momentum can tell, at what pace the price is appreciating/depreciating, and, therefore, predict the future behavior of a given asset. Sometimes it is essential to understand how strong an upcoming trend is, and this is what momentum indicators excel at.

Trend

Trend-following indicators are exactly what the name suggests
They are here to help you identify the prevailing trend. Why is it important, you may ask? Can't you spot the trend by simply looking at the price chart? Not always. Sometimes it is beneficial to have a clear representation of the prevailing trend. This is, however, not the only application of trend-following indicators. They can also be used to pinpoint entry and exit points when combined with indicators of different types.

Volatility

A measure of how quickly the price changes
Volatility indicators, therefore, can help you determine the amount of buying or selling pressure, currently present on the market. Volatility indicators can be effectively combined with momentum indicators (already mentioned in this article) for the purpose of creating a trading system that pinpoints periods of aggressive price changes.

Moving averages

Return the average price of an asset over a certain period of time.
Volatility indicators, therefore, can help you determine the amount of buying or selling pressure, currently present on the market. Volatility indicators can be effectively combined with momentum indicators (already mentioned in this article) for the purpose of creating a trading system that pinpoints periods of aggressive price changes.

Volume

Volume indicators are in a sense unique.
While other indicators mostly use information that is already on the screen, volume information turn to a different set of data, which is trading volume. Experienced traders know that the trading volume goes up and down as the trend unfolds. It is, therefore, wise to keep an eye on them. After all, if there is a chance to acquire one more signal to double check other indicators, why not do it?
Other
All indicators that do not fit into the before mentioned groups can be found here.
This is a go-for category if you are looking for something unique.

Traders should also remember that there is nothing wrong with trading with no indicators altogether, especially when working on longer time frames and relying on fundamental analysis a lot. There is no surprise that value investors like Warren Buffet, who keep their money with the same companies for years, evaluate the management team, industry growth potential, etc., not the technical factors.

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