Understanding Technical Analysis_5. Technical Indicators

Lesson 5: Technical Indicators

These are statistically programmed add-ons for the main part of trading platforms
that mathematically evaluate relations between different elements to help with price
projection.
In general, technical indicators are divided into four groups which include:

1.Trend Indicators
So Moving Average (MA) or a Average directional index (ADX),Ichimoku Kinko Hyo,
Moving Average, Convergence/Divergence (MACD) and Parabolic SAR.

2.Momentum:
Relative Strength Index (RSI),Stochastic Oscillator Williams Percent Range (%R).

3.Volatility:
which are Average True Range (ATR), Bollinger Bands or Standard Deviation.

4.Volume:
Money Flow Index (MFI), Accumulation Distribution (ADL) and On-balance volume
(OBV).
We mentioned the fourth grade specifically as trading volume is the major provider of
data for analysis.
Financial traders in the stock, futures, and commodity market also find the
assessments of total trade volume to be useful.