Analysts are constantly striving to figure out the patterns within the stock market. Will the stock price continue to go up? Will it plateau? Will we see a crash in the coming days? Looking at trends and attempting to predict the future is the most valuable skill any trader must possess. When the equity price reaches a certain level, known as the support or resistance level, … [Read more...]
MACD Indicator – In Search of Divergence
The MACD indicator is a short abbreviation for moving average convergence divergence. It is a widely used indicator based on a calculation of exponential moving averages and a “signal” line. It is plotted in a separate window underneath the trading chart and can often come with a histogram showing the movement shaded in ranges. The common calculation for an MACD indicator is … [Read more...]
RSI Indicator – Getting The Best From Chart Trends
The RSI Indicator is short for Relative Strength Index. It is a commonly used type of momentum indicator for technical analysis charts which shows you overbought and oversold levels of a price. it performs a calculation on the amount of “up” closes divided by the amount of “down” closes over a set period of days, weeks or hours (depending on the type of trader you are). Take a … [Read more...]