The concept of technical indicators. Types of technical indicators. Trend Indicators and oscillators.
Technical indicators are a separate class of mathematical transformations that allow one to visualize certain indicators. It is believed that such primary indicators (in terms of technical analysis) are price and volume. However, these are not the only 'primary sources'. For example, they can also be volatility or correlation with other financial instruments. For the time being, we will start with price, so as not to complicate the presentation, which primarily intended for beginning traders.
There are several hundred more or less known and common indicators, and thousands and thousands of different variations or author developments of practicing traders that are not widely spread, but are used in trade in individual cases. We do not have the opportunity to cover the entire list, therefore, first of all we will designate the two largest classes of indicators: trend (or trend-following) and leading (oscillators). Next, we will have a look at two examples of indicators from each class.Prev Next