Technical Analysis – Technical Indicators

In this chapter, I’m going to show you the indicators most traders use when trading. They are the most common, and they are so often used because they work. I’ve split them into categories so that you don’t use multiple indicators that look at the situation from the same angle (thus not giving you enough information), and I made sure you have enough examples to understand how they work.

My goal for this chapter is for you to understand the story of the price that’s being told through these indicators.

Just as when we looked at candlestick and chart patterns, these indicators add information to the same story but from different angles. Understand them, and you’ll be able to begin predicting price directions and trade them accordingly.

Here are the topics we’re going to talk about:

• Technical indicator categories
• Trend indicators, moving averages
• Momentum indicators, relative...