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@ HowToTrade
STOCK INDICATORS
GHEAT SHEET
MOVING AVERAGES
MA is a trend-following indicator that captures the
average price change in a data series over time.
* There are two main types of moving averages - the Simple Moving
Average (SMA) and the Exponential Moving Average (EMA).
* Moving averages are also used to identify significant support and resistance levels.
« Traders often use moving average crossovers to identify entry and exit levels.
« MAare used to identify trend direction.
MOVING AVERAGE CONVERGENCE
* Traders use the MACD to identify the DIVERGENCE (MACD)
momentum of an existing trend and MACD is a momentum indicator
find entry and exit levels. that shows the relationship
between two moving averages.
* MACD oversupply and over-demand
values are set at 20 & 80 or 30 and 70.
ill,
* Acrossover typically signals a high ivy
possibility of a trend reversal .
RELATIVE STRENGTH INDEX (RSD)
The RSI is a momentum oscillator indicator that helps
traders identify overbought or oversold conditions.
* The RSI is considered overbought when above 70
and oversold when below 30.
ZA * RS| reading of 50 denotes a neutral level between
/ ay buyers and sellers. A movement above 50 indicates
Aw dominant buying, while a move below 50 indicates
more bearish power.
BOLLINGER BANDS
BB are used to measure a market's volatility and
identify overbought or oversold areas.
* When the price continually touches the
upper Bollinger band, it may indicate an
overbought signal, while continually
touching the lower Bollinger band, it
indicates an oversold signal.
* Bollinger Bands primarily
measure volatility, and how
quickly price action can
potentially move up and down.
* Asharp breakout above or below * As long as the price stays inside the
Bollinger bands signals that a channel, the trend will likely
reversal is likely to occur. continue in the same direction.
FIBONACCI RETRACEMENT LEVELS
Fibonacci Retracement Levels highlight zones in a chart where
the price retraces, and from there, it may continue in the same
direction or reverse.
* The Fibonacci retracement levels
are 23.6%, 38.2%, 61.8%, and 78.6%.
* Traders use Fibonacci retracement
levels to identify potential support
and resistance areas.
ON-BALANCE VOLUME INDICATOR
OBV is a volume indicator that calculates the total
volume for a particular market.
* OBV measures accumulation and distribution
phases using volume and price data.
* Ahigh trading volume indicates a greater
overall market interest and the strength of
the existing trend.
STOCHASTIC OSCILLATOR
Stochastic Oscillator primarily indicates the asset's momentum
and whether the price is in oversold or overbought territory.
* Measures the momentum of price movements.
/ Kf * A widening Stochastic shows the strength of a
/ price trend. A narrowing and closing Stochastic
channel signals the slowing momentum of a trend.
