Technical indicator is a mathematical calculation based on historic price and volume that aims to forecast market direction. Indicator is not a decision maker.
Moving average reduces the whipsaws. Moving average as the name suggest is the average of the closing price over a given period , maybe 5 day, 7 day, 10 day etc. There are 3 types of moving averages. 1) Simple moving average. 2) Exponential moving average. 3) weighted average moving average.
RSI is a relative strength index. RSI is a oscillator indicator. It oscillates between 0 and 100. It gives good results in all type of markets trending and non trending.
When the rsi is above 70 the signal is overbought and it is a signal to sell the scrip at appropriate time. Above 70 it is a sell zone or the supply zone. When the price is below 30 the market is oversold and it signals a buy. It is buy zone or demand zone.
Fibonacci series is a sequence of numbers in which each number is the sum of previous 2 numbers in the sequence. The sequence is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233…. The golden mean is the ratio of 2 consecutive numbers ex 233/144=1.618.
Fibonacci ratios were originally created by mathematician Leonardo Fibonacci. Fibonacci retracements is based on Fibonacci ratios viz. 61.8%, 38.2% 23.6% (which are arrived by his series 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144…. Upto infinity in which (from the third) number in the series is the sum of two numbers in the left and 61.8% is the % arrived by any number in the series divided by its nex right side number. These ratios are used by market traders as the support and resistance
, , Technical Indicators, Bollinger Bands, buy zone, Demand, moving averages, Parabolic SAR, Relative Strength Index, sell zone, Supply, Technical indicators
