Indicators are based from technical analysis, that is where they are used. As the name itself suggest, they indicate us based on what the choosen indicator is specified for. There are traders out there who trade based on naked chart, meaning there is only price line with no indicators. That definitely not means they are without use. What indicators can do is they can show us more of a bigger picture on the whole thing based on the history by for example, smoothing the price line.
WHAT YOU WILL LEARN HERE:
- What is indicator?
- Old-school indicators
- Future Indicators
- More examples of indicators, provided from other websites in technical analysis!
OLD-SCHOOL INDICATORS
You will here about these ones, that is why we will cover them. It is good that you know a little about history aswell. Some of most used and also we can say respected indicators from the old-school guys are still being used in trading. Bollinger Bands was invented by John Bollinger in 80s, we also had Stocchastic indicator which was created in 50s by futures traders and George Lane. The times when people were outisde having a good time, Geral Appel has made MACD. Relative strenght index should also be mentioned who was created by mr. Wilder. So, if you want to more about technical analysis, you definitely should check all that were mentioned here in details. There are also others as you will see and does not man they are any worse then these here.
FUTURE INDICATORS
There are always some new indicators coming out on the market but mostly they are just using old ones with midifications. There are amongst them also some really good ones such as Fibonacci that automaticly draws levels on the chart. Since there is so many indicators, trader must know his strategy bcause based on that he can choose the indicators that will be most helpful for him. You can use an indicator for whatever you wish, for exampl when to exit from trade.
MORE INFO ON INDICATORS
Check on these websites for more technical analysis indicators and their description:
- Investopedia.com Indicators list
- Stockcharts.com technical indicators and overlays list
- Wikipedia list for indicators
FINALE
So if you read this article from top to bottom you have realized there is alot of indicators and therefore you can not use all of them at once otherwise it would be a mess when you would look at charts. That is why you need to establish what you want to see from teh chart based on your strategy. You have to find righ combination to determine yourself a success. It will definitely be hard work but it will pay-off at the end if you focus and not give up.