The Top 10 Trading Indicators Every Investor Should Know
Moving Averages (MA) Smooths out price data to identify trends over a specific period. Common types include Simple Moving Average (SMA) and Exponential Moving Average (EMA).
Relative Strength Index (RSI) Measures the speed and change of price movements to identify overbought or oversold conditions, helping spot potential reversals.
Moving Average Convergence Divergence (MACD) Shows the relationship between two moving averages and helps identify trend changes and momentum.
Bollinger Bands Uses standard deviation to create upper and lower bands around a moving average, indicating volatility and potential price breakouts.
Stochastic Oscillator Compares a particular closing price to a range of prices over time to predict price turning points.
Fibonacci Retracement Identifies potential support and resistance levels based on the Fibonacci sequence, used to spot price pullbacks.
Volume Tracks the number of shares or contracts traded, confirming the strength of price movements.
Average True Range (ATR) Measures market volatility by calculating the average range between high and low prices over a set period.
Parabolic SAR (Stop and Reverse) Helps identify potential reversal points and trailing stop levels in trending markets.
Ichimoku Cloud A comprehensive indicator providing support/resistance levels, trend direction, and momentum all in one view.
