Technical indicators are tools that help traders to identify the future price and trend with past trend and price. Relative strength index is used to point out the overbought and oversold shares.

• : It uses a mathematical formula to drive future price and trend. It derives its data from past price, volume and trend
• : It is a technical indicator that help in smoothing out the short term price fluctuations. Its main application is to identify trend direction and determine resistance and support
• : Relative Strength Index is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions. Generally a RSI of 30 or below 30 indicates oversold condition. And a level of 70 indicates overbought ie. potential sell signal
• : Will read more on it
• : Will read more on it
• : Fibonacci explanation in simple terms
1 Comment
1. Naresh 4 months ago

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 applying the tool, the software shows you the retracement levels automatically.

click the link below for more details