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Indicators

AMZN Short Position- Price below the 200 MA, confirming the general downtrend. - Possible formation of descending triangle. - Demand for the asset is weakening (see volume, RSI and OBV indicators). When the price cuts below the 50 MA, the RSI is well below 50% and the OBV is red and well below the mid level, enter short. I prefer to enter my positions with confirmations of indicators, rather formations of patterns. WARNING: THIS IS NOT A INVESTMENT ADVICE. I'M JUST POSTING MY IDEAS AND IT IS FOR EXCHANGE OPINIONS.
NASDAQ:AMZNShort
by mariohidalgo
Price action vs Indicators =, Another lie in trading ? I did not go into the details of "lagging" as it relates to indicators. Which is a true statement but its a misunderstood statement in the trading industry because most people don't truly understand what that means and also there are a lot of indicators that are leading. However in this video when I say "lagging" I am referring to the general idea in fx that indicators are useless because they are using past data.
PEPPERSTONE:ETHUSDEducation
by ChristopherDownie
Winning Combinations of Technical and Fundamental IndicatorsHere are some combinations of technical and fundamental indicators that investors often use to analyze stocks. 1. Moving Average, MACD , RSI + Valuation Ratios (P/E, P/B, P/S) This combination of technical and fundamental indicators is commonly used by investors to analyze the short-term price trends of a stock and its long-term valuation. Moving averages, MACD , and RSI are technical indicators that can help investors identify short-term buy or sell signals, overbought or oversold conditions, and follow the trend. On the other hand, valuation ratios like P/E, P/B, and P/S can provide insights into the company's long-term valuation and potential for growth. For example, if a stock's P/E ratio is significantly lower than its industry average, it may indicate that the stock is undervalued and could present a buying opportunity. 2. Bollinger Bands , Ichimoku Cloud , Stochastic + Financial Statement Analysis, Interest Rates This combination of technical and fundamental indicators is commonly used by investors to analyze a stock's price volatility and trend as well as its financial health and economic factors. Bollinger Bands , Ichimoku Cloud , and Stochastic are technical indicators that can help investors measure price volatility , identify overbought or oversold levels, and follow the trend. Financial statement analysis can provide insights into a company's financial health, including its revenue, earnings , and debt levels. Interest rates can also provide insights into the broader economic trends that may impact the stock's performance. For example, if interest rates are rising, it may indicate a stronger economy, which could positively impact the stock's performance. 3. Fibonacci Retracement , Support and Resistance , MACD + Economic and Political News, Key Economic Indicators ( Inflation Rate, GDP, Unemployment Rate) This combination of technical and fundamental indicators is commonly used by investors to analyze a stock's short-term price trends, volatility , and support and resistance levels, as well as the overall economic performance and market trends. Fibonacci retracement , Support and Resistance , and MACD are technical indicators that can help investors identify short-term buy or sell signals, measure volatility , and identify support and resistance levels. Economic and political news, as well as key economic indicators like inflation rate, GDP, and unemployment rate, can provide insights into the overall economic performance and market trends that may impact the stock's performance. For example, if there is positive economic news or if key economic indicators like GDP and inflation rate are improving, it may indicate a growing economy and positively impact the stock's performance. It is important to note that these combinations are just examples and their effectiveness may vary depending on market conditions and the trading strategy used. Investors should always exercise due diligence and research before using indicators in their trading strategy. Feel free to share your own combinations of indicators and opinions in the comments section below.
Education
by Julien_Eche
Learn 7 Classic Free Indicators For Technical Traders ◻️MACD(Moving Average Convergence/Divergence) Traders use MACD to identify changes in the direction or strength of the asset’s price trend. MACD can seem complicated at first glance, because it relies on additional statistical concepts such as the exponential moving average (EMA). But fundamentally, MACD helps traders detect when the recent momentum in an asset’s price may signal a change in its underlying trend. This can help traders decide when to enter, add to, or exit a position.MACD is a lagging indicator. After all, all the data used in MACD is based on the historical price action of the asset. Because it is based on historical data, it must necessarily lag the price. However, some traders use MACD histograms to predict when a change in trend will occur. ◻️VWAP(Volume-Weighted Average Price) The volume-weighted average price (VWAP) is a measurement that shows the average price of a security, adjusted for its volume. It is calculated during a specific trading session by taking the total dollar value of trading in the security and dividing it by the volume of trades. The formula for calculating VWAP is cumulative typical price x volume divided by cumulative volume. VWAP gives traders a smoothed-out indication of a security’s price (adjusted for volume) over time. It is used by institutional traders to ensure that their trades do not move the price of the security they are trying to buy or sell too extremely. ◻️EMA(Exponential Moving Average) An exponential moving average (EMA) is a type of moving average (MA) that places a greater weight and significance on the most recent data points. The exponential moving average is also referred to as the exponentially weighted moving average. An exponentially weighted moving average reacts more significantly to recent price changes than a simple moving average simple moving average (SMA), which applies an equal weight to all observations in the period. ◻️THE FOUR TYPES OF EMA: ▪️9-EMA is use for short term trading ▪️21-EMA is used for day trading ▪️50-EMA is used for analysis ▪️200-EMA is used for long term view ◻️RSI(Relative Strength Index) The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to evaluate overvalued or undervalued conditions in the price of that security. The RSI is displayed as an oscillator (a line graph) on a scale of zero to 100.Generally, when the RSI indicator crosses 30 on the RSI chart, it is a bullish sign and when it crosses 70, it is a bearish sign. Put another way, one can interpret that RSI values of 70 or above indicate that a security is becoming overbought or overvalued. It may be primed for a trend reversal or corrective price pullback. An RSI reading of 30 or below indicates an oversold or undervalued condition. Overbought refers to a security that trades at a price level above its true (or intrinsic) value. That means that it's priced above where it should be, according to practitioners of either technical analysis or fundamental analysis. Traders who see indications that a security is overbought may expect a price correction or trend reversal. Therefore, they may sell the security. Thanks for reading bro, you are the best☺️ Like, comment and subscribe to boost your trading! Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
8
10 Common Technical Indicators Simply Explained for Easy TradingTrend Indicators: 1. Moving Average (MA): The Moving Average is a popular trend-following indicator that smooths out price data by creating a constantly updated average price. The MA is used to identify the general direction of a trend, as well as potential support and resistance levels. The most commonly used MA types are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA). Short-term traders often use shorter MAs, such as the 10-day or 20-day MA, while longer-term traders may use the 50-day or 200-day MA. 2. Moving Average Convergence Divergence (MACD): The MACD is another trend-following momentum indicator that shows the relationship between two moving averages of a security's price. The MACD consists of a fast line (12-day EMA), a slow line (26-day EMA), and a signal line (9-day EMA). The MACD is used to identify trend reversals and momentum shifts. When the fast line crosses above the slow line, it is considered a bullish signal, and when the fast line crosses below the slow line, it is considered a bearish signal. Momentum Indicators: 3. Relative Strength Index (RSI): The RSI is a popular momentum oscillator that measures the velocity and magnitude of price movements. The RSI compares the average gains and losses over a specific period of time to determine whether a security is overbought or oversold. The RSI typically ranges from 0 to 100, with readings above 70 indicating overbought conditions and readings below 30 indicating oversold conditions. The RSI can be used to confirm price trends and to identify potential trend reversals. 4. Stochastic Oscillator: The Stochastic Oscillator is another momentum oscillator that compares the closing price of a security to its price range over a specific period of time. The Stochastic Oscillator consists of two lines: %K and %D. The %K line is the main line, and the %D line is a moving average of the %K line. The Stochastic Oscillator is used to identify overbought and oversold conditions and potential trend reversals. When the %K line crosses above the %D line, it is considered a buy signal, and when the %K line crosses below the %D line, it is considered a sell signal. Volatility Indicators: 5. Bollinger Bands: Bollinger Bands are a popular volatility indicator that consists of three lines: a moving average, an upper band, and a lower band. The upper and lower bands are typically set two standard deviations away from the moving average. The bands expand and contract as volatility increases and decreases. When the price is at the upper band, it is considered overbought, and when it is at the lower band, it is considered oversold. Bollinger Bands can be used to identify potential trend reversals and to confirm price trends. 6. Average True Range (ATR): The ATR is a volatility indicator that measures the average range of a security's price over a specific period of time. The ATR is typically used to identify potential breakout opportunities and to set stop-loss orders. High ATR readings indicate high volatility, while low ATR readings indicate low volatility. Oscillator Indicators: 7. Commodity Channel Index (CCI): The CCI is an oscillator indicator that measures the difference between a security's price and its average price over a specific period of time. The CCI typically ranges from -100 to +100, with readings below -100 indicating oversold conditions and readings above +100 indicating overbought conditions. The CCI can be used to identify potential trend reversals and to confirm price trends. 8. Relative Vigor Index (RVI): The RVI is another oscillator indicator that measures the strength of a security's price relative to its closing price range over a specific period of time. The RVI typically ranges from 0 to 100, with readings above 50 indicating bullish conditions and readings below 50 indicating bearish conditions. The RVI can be used to identify potential trend reversals and to confirm price trends. Volume Indicators: 9. On-Balance Volume (OBV): The OBV is a popular volume indicator that measures the buying and selling pressure of a security based on its volume. The OBV adds the total volume of a security when its price increases and subtracts the total volume when its price decreases. The OBV can be used to confirm price trends and to identify potential trend reversals. 10. Chaikin Money Flow (CMF): The CMF is another volume indicator that measures the buying and selling pressure of a security based on its volume. The CMF takes into account both the price and volume of a security to determine its overall buying and selling pressure. The CMF typically ranges from -1 to +1, with readings above 0 indicating buying pressure and readings below 0 indicating selling pressure. The CMF can be used to confirm price trends and to identify potential trend reversals. In conclusion, technical indicators are essential tools for traders to analyze securities and make informed decisions about buying and selling. Each indicator has its own strengths and weaknesses, and traders often use a combination of indicators to confirm their trading decisions. By understanding how these indicators work and what they measure, traders can gain a deeper insight into the behavior of the markets and potentially improve their trading performance.
Education
by Julien_Eche
2