*Technical indicators are algorithms which indicates price movements.
*Technical indicators is different from other analysis , as it does not involve directly demand & supply, price & volume which are basis of other analysis.
*It gives ready made analysis.
*Technical indicators may not work all the time.
*Moving Average is an indicator which calculates average price of security in specific period(21 days).
*It acts like magnet and it smoothens the trend.
*It works well with trending zone.
*The trend is bullish, if price moves above moving average.
*The trend is bearish , if price moves below moving average.
**Relative strength index(RSI) is an indicator in non trending zone.
*In non trending zone , RSI provides index of 70 & 30 scales.
*RSI value above 70 is overbought zone and RSI below 30 is oversold zone.
*When price moves below 30 and then again moves above 30 with volume ,long position can be created.
*Fibonacci Series is a simple sequence in which each number is sum of previous two numbers in sequence.
*1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89….. is Fibonacci Series. *Fibonacci retracement helps to identify potential trend reversal levels.
*Popular fibonacci retracements are 61.8 & 38.2.
*It uses horizontal lines to identify support and resistance ,these are created by drawing 2 trend lines to two extremes and dividing them with fibonacci ratios.