Types of Technical Indicators and How to use them

Posted by Saurabh Chaurasia on

Technical Indicators Uses

Ever wondered which indicators do successful investors use? Well, it is technical indicators! One can review charts and make decisions based on patterns and indicators using technical trading. These patterns have a specific shape like candlesticks and inform us where the price is likely to go next. There are various indicators with multiple benefits.

What is Momentum Indicators?

Momentum indicators convey how strong the trend is and also tells you if a reversal is going to occur. It is useful for picking out price tops and bottoms. Momentum indicators include ADX and Stochastics. Volume indicators notify on how volume is changing over time, like how many bitcoins are bought and sold over time. It is useful for traders as it indicates how strong the move is. The volatility indicator briefs you on how much the price is changing in a given period. Volatility is a very essential part of the stock market and without it, an investor cannot achieve higher profits! The higher the volatility, the faster the price is changing. Lower volatility conveys small price moves.

What is Bollinger Bands?

Bollinger bands are a part of a volatility indicator and it consists of a simple moving average and an exponential moving average, and 2 lines plotted at 2 standard deviations on either side of the central moving average line. Chikou span, also called the lagging line, is an indicator in which today's closing price is plotted 26 periods behind.

Indicators can be a great tool for you to use. It helps you enter the financial markets. If you are a beginner, you can try to combine different indicators to generate positive results. Do not worry about adjusting the parameters and tweaking the indicators. You can learn and create your strategy by learning Technical Indicators from BSE Institute Ltd. Clikc on the below link to know more: