Chapter 5. --- Technical Indicators

" Remember that happiness is a way of travel, not a destination ”

Indicators involve of mathematical formulas usually based onprice activity.Along with analyzing chart patterns, indicators in technical analysis provide a second major method of evaluating marketactivity. They also can help us forecast the continuation of price trends. Indicators are very useful in different ways, at different times.

There are five important uses of indicators which are helping us to :
1. Direction of a trend, ranging from short- to long-term
2. Strength of a trend
3. Support and resistance levels in a trend or in a trading range
4. Divergences that occur between indicators and price, suggesting a
possible future trend reversal
5. Trend reversal confirmations, also ranging from short- to long-term

In this chapter i will discus about :
1. Moving average
2. MACD
3. Bollinger Band
4. RSI and Stochostic
5. Parabolic Sars
6. On Balance Volume
7. William % R and Aroon index