Technical Indicator -The Supporting Star

Technical Indicators are Algorithmica indicators. It cannot be used to trade straight away for trading like bow theory or candlestick analysis, but can be only a supportive tool. They are only indicators but not the decision maker. moving average is an arithmetic moving average calculated by adding the closing price of the security for a number of time periods and then dividing this total by the number of time periods. … Short-term averages can act as levels of support when the price experiences a pullback. Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine … the RSI, use more extreme RSI values as buy or sell signals, such as RSI readings above 80 to indicate overbought conditions and RSI readings below 20 to indicate oversold condition. When used in technical analysis, the golden ratio is typically translated into three percentages: – 38.2%, 50% and 61.8%. However, more multiples can be used when needed, such as 23.6%, 161.8%, 423% and so on. There are four primary methods for applying the Fibonacci sequence to finance: retracements, arcs, fans. When the trend is bullish, the resistance is likely to happen at the 38.2 or 50 or at 61.8 % levels for retracement and then the trend will continue in the forward direction. Similarly in bearish trend, the support zone likely to appear at 38.2 or 50 or at 61.8% level from initial low/high positions for retracements.