Continued:
Fourth: Types of technical indicators in technical analysis:
We can divide the work or types of technical indicators into four main types:
1 - Indicators that help you know the trend: such as the MACD indicator - Moving Average.
2 - Indicators that help you know momentum (the speed of market movement): such as the RSI indicator - the ADX indicator.
3 - Indicators that help determine the volume of liquidity that gives the strength of the movement: such as the Oscillator indicator.
4 - Indicators that help study market fluctuations: such as the Bollinger Bands indicator.
You should know that each of these indicators has its own mechanism of action and strategies, and there are also mixtures between several indicators to form a special strategy.
There are those who use intraday speculation or scalping strategies in the short term
There are those who use daily trading strategies over the medium or long term.
Fifth: The most important types and models of technical analysis:
They are well-known and famous shapes that you see on the chart. They help you determine the trend or change the trend and anticipate its goal, and I will present to you the most famous group of them now..
1. Head and shoulders:
It has 3 peaks, divided into a peak at the top and two peaks at the bottom on each side, in the form of a head and shoulders as in the picture. The price explodes when the neck line is broken, and it can have 3 bottoms, a bottom at the bottom and two bottoms on each side, which are the shoulders.
He follows
