Trading Indicators

Introduction: What Are Moving Averages? Moving averages are among the most widely used technical indicators in trading, helping traders smooth out price data to identify trends and make informed decisions. There are three main types of moving averages: Simple Moving Average (SMA), Exponential Moving Average (EMA), and Weighted Moving Average

What is the SMA? The Simple Moving Average (SMA) is one of the most commonly used technical indicators in trading. Unlike the Exponential Moving Average (EMA), which gives more weight to recent prices, the SMA assigns equal weight to all prices within the selected time period. This makes it a

What are Pivot Points? Pivot Points are a popular technical analysis tool used to determine potential support and resistance levels in the financial markets. Originally used by floor traders on stock exchanges, Pivot Points are calculated using the high, low, and closing prices of the previous trading session. These levels

What is the Stochastic Indicator? The Stochastic Oscillator is a momentum indicator that compares a particular closing price of an asset to a range of its prices over a specific period. Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is used to identify overbought and oversold

What is the Ichimoku Cloud? The Ichimoku Cloud, also known as Ichimoku Kinko Hyo, is a comprehensive technical analysis tool that combines multiple indicators into a single chart. Developed by Japanese journalist Goichi Hosoda in the late 1930s and published in the 1960s, the Ichimoku Cloud provides insights into trend

What is the ATR? The Average True Range (ATR) is a volatility indicator that measures the degree of price movement in an asset over a specified period. Developed by J. Welles Wilder in his 1978 book "New Concepts in Technical Trading Systems," the ATR helps traders understand how

What are Keltner Channels? Keltner Channels are a technical analysis tool used to identify potential breakout points, trends, and overbought/oversold conditions in financial markets. Named after Chester W. Keltner, who introduced the concept in his 1960 book "How to Make Money in Commodities," Keltner Channels consist of

What is Chaikin Money Flow (CMF)? The Chaikin Money Flow (CMF) is a technical indicator developed by Marc Chaikin that measures the accumulation and distribution of an asset over a specified period, typically 20 days. It is based on the concept that price movements accompanied by high volume are more

What is the CCI? The Commodity Channel Index (CCI) is a versatile momentum-based technical indicator that can be used to identify cyclical trends not only in commodities but also in cryptocurrencies, forex, and stocks. Developed by Donald Lambert in 1980, the CCI measures the deviation of the current price from