Relative Strength Index (RSI)
Measures the magnitude of recent price changes to evaluate overbought or
oversold conditions.
RSI values range from 0 to 100; typically, an RSI above 70 indicates overbought
conditions, while below 30 indicates oversold conditions
.
Moving Average Convergence Divergence (MACD)
Consists of the MACD line (difference between two EMAs), the signal line (SMA
of the MACD line), and the histogram (difference between MACD line and signal
line).
Used to identify trend changes and momentum.
Bollinger Bands
Consist of a middle SMA line and upper and lower bands that are standard
deviations away from the SMA.
Useful for identifying volatility and potential price breakouts.
Charting Strategies for Short-Term and Long-Term Trading
Different trading strategies are used depending on the time frame and objectives:
Short-Term Trading
Focuses on quick gains within a short period (minutes to days). Key strategies
include:
Day Trading: Involves buying and selling within the same trading day. Requires
real-time data and quick decision-making.
Scalping: Aimed at profiting from small price changes, often executing dozens or
hundreds of trades in a single day.#StockMarketSuccess #TradingMadeEasy #begginermistake #begginers #BullRunAhead