In technical analysis indicator we know there is a term that is used to help analyze price movements and price limits.
There are some indicators that commonly used in general there are 3 types of indicators include:
1. Price Momentum Indicator (Oscillator): This type of indicator is used to identify oversold or overbought situation. Momentum indicators are also used to see whether a trend will continue or fizzle out.
Example indicators:
- Stochastic Oscillator
- Relative Strength Index (RSI)
- CommodityChannel Index (CCI)
2. Trend Following Indicator: This indicator is used to identify the beginning and end of a trend or when a trend will change so that it can be seen when the best time to open and close positions.
Example indicators:
- Moving Average (MA)
- Moving Average Convergence - Divergence (MACD)
- Directional Movements Index (DMI)
- Parabolic SAR
3. Volatility Indicator: This indicator is used to see market forces as seen from price fluctuations within a certain time period. The market is said to have high volatility when going up and down price movements are sharp or very volatile where there is a big difference in price between the highest and lowest price.
Example indicators:
- Bollinger Bands
Name of technical indicators are also a lot in common with the name of the inventor. As an example of an indicator called Bollinger Bands, created by John Bollinger, a Technical Analyst Jewish descent.
There are some indicators that commonly used in general there are 3 types of indicators include:
1. Price Momentum Indicator (Oscillator): This type of indicator is used to identify oversold or overbought situation. Momentum indicators are also used to see whether a trend will continue or fizzle out.
Example indicators:
- Stochastic Oscillator
- Relative Strength Index (RSI)
- CommodityChannel Index (CCI)
2. Trend Following Indicator: This indicator is used to identify the beginning and end of a trend or when a trend will change so that it can be seen when the best time to open and close positions.
Example indicators:
- Moving Average (MA)
- Moving Average Convergence - Divergence (MACD)
- Directional Movements Index (DMI)
- Parabolic SAR
3. Volatility Indicator: This indicator is used to see market forces as seen from price fluctuations within a certain time period. The market is said to have high volatility when going up and down price movements are sharp or very volatile where there is a big difference in price between the highest and lowest price.
Example indicators:
- Bollinger Bands
Name of technical indicators are also a lot in common with the name of the inventor. As an example of an indicator called Bollinger Bands, created by John Bollinger, a Technical Analyst Jewish descent.
