INDICATORS

Technical indicators are mathematical and statistical tools that help traders and investors make informed decisions. Here I provide you with an overview of some common technical indicators.

Moving Average (Moving Average):

Type: Trend

Description: Calculates the average of the prices of an asset in a specific period of time. It can be simple (SMA) or exponential (EMA).

Usefulness: Helps smooth out volatility and identify the direction of the current trend.

RSI (Relative Strength Index):

Type: Oscillator

Description: Measures the speed and change of price movements, providing an overbought or oversold assessment of the asset

Usefulness: It can indicate when an asset is overbought (possible downward correction) or oversold (possible upward correction).

MACD (Moving Average Convergence Divergence):

Type: Trend and Oscillator

Description: Combines two moving averages (slow and fast) to identify changes in trend and strength of movement

Usefulness: Helps identify entry and exit points, as well as the strength of the trend.

Bollinger Bands:

Type: Volatility

Description: Consists of an upper and lower band surrounding the price, based on the standard deviation of prices with respect to a moving average

Utility: Indicates volatility and possible investment points.

Fibonacci Retracement:

Type: Support and resistance.

Description: Use retracement levels based on Fibonacci numbers to determine possible trend reversal zones.

Usefulness: Helps identify key support and resistance levels.

Volume:

Type: Volume.

Description: Shows the amount of assets traded in a specific time period.

Usefulness: It can confirm the validity of a trend, indicate the strength of a trend and detect possible changes in it.

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