Market Trading Indicators
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- Moving Averages: Moving averages smooth out price data to identify trends over a specified time period. Common types include simple moving averages (SMA) and exponential moving averages (EMA).
- Relative Strength Index (RSI): RSI measures the magnitude of recent price changes to evaluate overbought or oversold conditions in a security. It ranges from 0 to 100, with readings above 70 indicating overbought conditions and readings below 30 indicating oversold conditions.
- Moving Average Convergence Divergence (MACD): MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price. It consists of a MACD line, signal line, and histogram.
- Bollinger Bands: Bollinger Bands consist of a middle band (SMA) and two outer bands that represent standard deviations of the underlying asset's price. They help identify volatility and potential reversal points.
- Volume: Volume measures the number of shares or contracts traded in a security or market during a given period. It can indicate the strength of a trend or signal potential reversals.
- Fibonacci Retracement Levels: Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur based on key Fibonacci ratios. Traders use them to identify potential reversal levels.
- Stochastic Oscillator: The stochastic oscillator compares a security's closing price to its price range over a specified period. It helps identify potential reversal points by indicating overbought or oversold conditions.
- Average True Range (ATR): ATR measures market volatility by calculating the average range between high and low prices over a specific period. Traders use it to set stop-loss orders and determine position size.