Indicators Analysis

A trading indicator is a statistical tool that investors or traders use to evaluate the direction of the price action of a specified instrument. The trading indicators are experiential or mathematical calculations based on the price, volume, or open interest of a security or contract used by traders who follow technical analysis. Technical analysis is a trading discipline hired to estimate investments and identify trading opportunities by analyzing statistical trends collected from trading activities, such as price movement and volume. The trading indicators that use the same measure as prices are planned over the top of the prices on a stock chart.

There are many popular indicators and oscillators:

Moving Average, Bollinger Bands, Ichimoku Kinko Hyo, etc. are the popular indicators.

Relative Strength Index [RSI], Moving Average Convergence and Divergence [MACD], Momentum, etc., are very common oscillators.

The investors or traders should have proper knowledge of using the indicators and the oscillators.