The indicators we are going to start with are moving averages, which fall under the category of trend indicators and basically serve to smooth historical price data and to create a composite of market direction.
We'll then move on to study several uses of the MACD, which is an oscillator. Oscillators determine the strength or weakness of a trend as it progresses over time, and they offer many ways in which they can be used: to spot divergences between the price and the indicator, to 
reveal overbought and oversold market conditions and to print crossovers. And this is just to name the most common uses. Other well known oscillators are the Stochastic and the RSI which are mentioned in a later section.
Indicators based on price levels, like Fibonacci levels and Pivot Points, are our next study. The advantage of these indicators is that they don't lag price and work very well in combination with other indicators. Besides, they are excellent visualizers of S&R levels.
Another category belongs to the volatility indicators. Volatility is a general term used to describe the dimension of price fluctuations independently from the direction of the trend. Bollinger Bands are a good example and deserve to be rescued later on when covering trading strategies in the next Unit of the Learning Center.
There is no reason to complicate things when learning technical analysis. That is the reason why we will study only a few common indicators, but in turn we will study their nature and see what implementations and parameters make them more effective.
You don't need to devote your time collecting price data to make use of technical indicators. Any private trader can access numerous technical tools through most trading platforms.
reveal overbought and oversold market conditions and to print crossovers. And this is just to name the most common uses. Other well known oscillators are the Stochastic and the RSI which are mentioned in a later section.Indicators based on price levels, like Fibonacci levels and Pivot Points, are our next study. The advantage of these indicators is that they don't lag price and work very well in combination with other indicators. Besides, they are excellent visualizers of S&R levels.
Another category belongs to the volatility indicators. Volatility is a general term used to describe the dimension of price fluctuations independently from the direction of the trend. Bollinger Bands are a good example and deserve to be rescued later on when covering trading strategies in the next Unit of the Learning Center.
There is no reason to complicate things when learning technical analysis. That is the reason why we will study only a few common indicators, but in turn we will study their nature and see what implementations and parameters make them more effective.
You don't need to devote your time collecting price data to make use of technical indicators. Any private trader can access numerous technical tools through most trading platforms.
