📈Hello family📉
Let's break down some key Momentum Indicators we use in trading:
1. MACD (Moving Average Convergence Divergence): This one shows us the relationship between two moving averages of price. When the MACD crosses above its signal line, it's a bullish signal, and when it crosses below, it's bearish.
2. Stochastic Oscillator: This compares a closing price to its price range over a specific period. It helps us identify overbought or oversold conditions. Above 80 might be overbought, below 20 could be oversold.
3. RSI (Relative Strength Index): Measures the speed and change of price movements. An RSI above 70 is considered overbought, while an RSI below 30 is considered oversold.
Understanding these can help us get a sense of market momentum and make better trades!🕯📈📉
#macd
