Lens1000
VIP Contributor
Technical indicators are used to simply complex market movements into a clear buy and sell signal. I will explain the types of technical indicators in details
*Trend indicators: this indicator is used to identify a trend. All you need do is to decide the level at which you should enter the trade
*Momentum indicators : this is mostly used to determine oversold and overbought positions. They are also known as oscillating indicators
*Volume indicators: this type of indicator shows the volume of trades at a particular price movement. A price movement with a high volume of trade indicate a strong signal but price movement with low volume of trade indicate a weak signal
*Volatility indicators: this indicator is used to study the behaviour of price and the volume of trade behind any movement. A change in behaviour could be a strong entry signal
However, it is advice to have all the indicators to be able to get a clear signal for successful trade
*Trend indicators: this indicator is used to identify a trend. All you need do is to decide the level at which you should enter the trade
*Momentum indicators : this is mostly used to determine oversold and overbought positions. They are also known as oscillating indicators
*Volume indicators: this type of indicator shows the volume of trades at a particular price movement. A price movement with a high volume of trade indicate a strong signal but price movement with low volume of trade indicate a weak signal
*Volatility indicators: this indicator is used to study the behaviour of price and the volume of trade behind any movement. A change in behaviour could be a strong entry signal
However, it is advice to have all the indicators to be able to get a clear signal for successful trade