Indicators are tools with the predefined analysis and set of algorithms, this can be applied on the trend to get the indication of price movement. It can be used as supporting tool to confirm the analysis derived from the technical analysis. But the indicators does not work in all scenarios, some of them work for trending and some of them indicate well in non trending zone.
Moving Average is the indicator that can be applied for analysis with trending zone. This indicator basically smoothen the trend with the average price value previous 21 days. The trend will be positive as long as the current price is above the average and negative when it goes below the average. This indicator does not help during the non trending period.
RSI is a momentum indicator of two horizontal lines indicating 70 at top and 30 at bottom
Price movement above 70 shows OVER BOUGHT area and price price movement BELOW 30 shows BUYING ZONE area
BUYING AREA when price crosses ABOVE exactly at 30 it in the right point to buy.
The full form of RSI is Relative Strength Index.
Hi,
In response to your question
Fibonacci retracement – The Fibonacci sequence is one of the most famous formulas in mathematics. Each number in the sequence is the sum of the two numbers that precede it. So, the sequence goes: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, and so on. Traders believe the Fibonacci series has its application in stock charts as it identified potential retracement levels. Fibonacci retracements are levels (61.8%, 38.2%, and 23.6%) up to which a stock can possibly retrace before it resumes the original directional move.
Golden Mean is 1.618 Logic behind the golden mean is the ratio of two consecutive numbers in the Fibonacci series is the same for all the two consecutive numbers.
Example 1: 21/13=1.618 Example 2: 144/89=1.618
How to use it while trading stocks
First, find the recent significant Swing Highs and Swings Lows. For downtrends, click on the Swing High and drag the cursor to the most recent Swing Low. While for uptrends, do the opposite. Click on the Swing Low and drag the cursor to the most recent Swing High. When you apply the tool, the software shows you the retracement levels automatically.
Click the below link for more information
https://www.youtube.com/watch?v=o7UNxJrns2g