|
Indicators
The
intent of this section of the Education Centre is
to help traders develop a better understanding of
how to interpret and apply technical analysis
indicators. There is a saying amongst technical
analysts that if you can get two independently
calculated indicators confirming the direction and
strength of a trend, then you should probably
trade in the direction of that trend. It is
therefore important to understand how indicators
are constructed and equally as important, how to
interpret and apply these indicators.
Whilst
there are many ways to categorise indicators, for
our purposes we will use the following groupings:
Please
note that wherever possible, we will include the
mathematical formula for each indicator (some
times copyright restrictions preclude this) and
that some indicators fall into more than one
category.
For further
reference, please visit Technical
Analysis from A-Z by Steven Achelis.
|
