Traders and investors alike rely on indicators plotted on their charts to guide them through their evaluation of a particular stock, a global market, ETF, commodity or FOREX pair.
This is more commonly referred to as Technical Analysis.
There are many hundreds of indicators that generally fall into 3 broad categories
- Measuring price or change in price example: Moving Averages
- Measuring the rate or speed of a change in price, ‘Momentum’ indicators, example: RSI, MACD or Stochastics
- Measuring volume or trading activity, example: OBV (on balance volume)
Learn more about trading and investing indicators by downloading a copy of our eBook ‘Technical Indicators for Traders and Investors’, a 90 page step by step guide with 35 indicators explained.